Understanding Tokens

A simple guide to tokens in AI and Blockchain

AI Tokens

In Large Language Models (LLMs), tokens are the basic units of text. They can be as short as a single character or as long as a word. AI models "read" and "write" by predicting the next token in a sequence.

Blockchain Tokens

In the world of crypto, tokens are digital assets issued on a blockchain. Unlike coins (which have their own blockchain), tokens are created using smart contracts on existing networks like Ethereum.

Why They Matter

Whether it's managing context windows in a chat or transferring value across the globe, tokens are the fundamental building blocks of the modern digital economy and intelligence.