Native tokens typically refer to cryptocurrency tokens that are native to a specific blockchain platform. These tokens are an integral part of the blockchain's ecosystem and are used for various purposes within that platform. For example:
1. Bitcoin (BTC): Bitcoin is the native token of the Bitcoin blockchain. It's used as a digital currency for peer-to-peer transactions and is often considered a store of value.
2. Ethereum (ETH): Ethereum's native token is Ether (ETH). It serves multiple functions, including paying for transaction fees, executing smart contracts, and as a form of digital currency.
3. Binance Coin (BNB): Binance Coin is the native token of the Binance Smart Chain. It can be used for transaction fees on the Binance Smart Chain, as well as for various DeFi applications and trading on the Binance exchange.
4. Cardano (ADA): ADA is the native token of the Cardano blockchain. It can be used for staking, governance, and various other functions within the Cardano ecosystem.
5. Planq Foundation (PLQ): Planq is a scalable, high-throughput Proof-of-Stake blockchain that is fully compatible and interoperable with Ethereum. It's built using the Cosmos SDK (opens new window)which runs on top of Tendermint Core (opens new window)consensus engine.
Planq allows for running vanilla Ethereum as a Cosmos (opens new window)application-specific blockchain. This allows developers to have all the desired features of Ethereum, while at the same time, benefit from Tendermint’s PoS implementation. Also, because it is built on top of the Cosmos SDK, it will be able to exchange value with the rest of the Cosmos Ecosystem through the Inter Blockchain Communication Protocol (IBC).
These native tokens are distinct from tokens or cryptocurrencies that are built on top of these blockchains, which are often referred to as "tokenized assets" or "tokens." Native tokens are fundamental to the operation of their respective blockchains, while other tokens are created using smart contracts or protocols built on those blockchains.
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