Description: A service token is a type of token that provides access to a service or product within a blockchain ecosystem. These tokens are fundamental in the realm of decentralized finance (DeFi), as they allow users to interact with various platforms and decentralized applications (dApps). Service tokens are often used to facilitate transactions, access specific functionalities, or participate in the governance of a protocol. Their design can vary, but they are generally tied to a value or utility within a system, giving them a clear and defined purpose. Additionally, these tokens can be interchangeable and tradable on secondary markets, adding a layer of liquidity and speculation. The importance of service tokens lies in their ability to democratize access to financial services, allowing users to participate in an ecosystem without the need for traditional intermediaries. This fosters innovation and competition in the sector while providing users with control over their assets and financial decisions.
