Development Environments

Native Tokens Glossary

Asset group

A collection of tokens/assets that share the same minting policy.

Custom token

A token featuring custom, user-defined functionality.

Minting

The action of minting or burning tokens. A negative minting amount indicates burning tokens, and a positive amount indicates minting new tokens.

Minting transaction

Transactions with a field specifying token minting details. These transactions also carry the minting policies to be checked during validation.

Fungible token/asset

An asset that is interchangeable and indistinguishable with some other asset(s). Same denomination bills and coins are fungible assets, for example, like equal quantities of ada to lovelaces.

Multi-asset (MA)

Ledgers that support accounting or transaction of more than one type of asset are considered to have \'multi-asset\' functionality. These ledgers can include blockchains, wallets, cryptocurrencies, or banking platforms, for example. Multi-assets usually include a platform\'s primary currency and multiple, user-defined assets.

Multisig

Simple scripting language supported by Cardano Shelley. Multisig specifies a minimal set of signatures required to allow a transaction to perform certain actions, and can also be used to specify simple minting policies.

Native token

A token type accounting and tracking of which is natively supported by its underlying platform without a need for additional software.

Non-fungible token/asset

A unique asset that is not interchangeable with any other asset(s). Non-fungible assets represent specific information (IP rights for example), and act as one unit that cannot be divided into smaller fractions.

One-time minting policy

A type of minting policy where the complete set of tokens of a given asset group is minted by a single transaction. Same tokens cannot be minted again.

Principal currency

On a cryptocurrency platform, this refers to a type of a token/asset that is used for administrative purposes, such as paying fees, delegating to a stake pool, or being minted. Cardano's primary currency is ada, Bitcoin's is bitcoin.

Securitization

The process of creating liquid, asset-backed securities from pools of illiquid assets.

Security token

A digital asset that derives its value from an external asset that can be traded. Usually, it represents stocks, bonds, or revenue participation notes. Security tokens are subject to federal law governing regulations.

Single-issuer policy

A minting policy that allows only the entity holding a particular set of keys (specified in the policy) to mint tokens of the associated asset group.

Token builder

A piece of software that allows users to define tokens to be minted by a minting transaction.

Token bundle

A collection of mixed tokens belonging to one or more different asset groups, usually stored in a single output.

Token burning

The process of removing a token from circulation, (destroying the token).

Token

Digital representation of an asset of value defined by the community, market state, or self-governed entity. A token can be fungible or non-fungible, and act as a payment unit, reward, trading asset, or information holder.

Tokenization

The process of representing real-world assets with digital tokens.

Token minting

The process of creating new tokens.

Utility token

A digital token that holds certain functionality in regards to a concrete project or environment. These tokens can be used as payment units, rewards, or grant access to a specific network.

Last updated: December 10, 2020 08:00 UTC