Exploring the Role of Tokens in Decentralized Finance

Decentralized finance (DeFi) is one of the revolutionary frameworks on the digital financial landscape, which continues to change rapidly. The main innovation behind it is the concept of tokens.These are blockchain backed digital assets that serves as fuel to the DeFi ecosystem that drives the capability to power a variety of decentralized application, protocols, and financial products. With the trend towards the decentralization of the world of finance gaining speed, it is crucial to consider how tokens play an essential part in DeFi. What Are Tokens in DeFi? Tokens are programmable digital assets constructed on blockchain networks, such as Ethereum, Binance Smart Chain, or TRON. Although they are based on smart contracts, unlike native cryptocurrencies like Bitcoin, which are entirely separate things, tokens run on pre-existing blockchains. These tokens are purposeful to use in decentralized applications (dApps) such as participating in governance and access to platforms as wel...