Token

A token is a a visible or tangible representation of a fact, quality, feeling, thing, etc. In the virtual world, tokens represent a particular fungible and tradable asset or a utility that is often found on a blockchain.  Tokens are used with decentralised applications, built on top of a blockchain. Every token enables users to use different features of the application they were designed for. 

Security token

A security token represents ownership of a digital asset through blockchain transactions. This digital asset can represent both real-life material and non-material assets (e.g. real estate or company shares). Because these tokens are deemed as security, they are subject to regulation. Under some national laws, they are treated in the same way as traditional securities. 

Utility token

A utility token gives the user the ability to use a product or service. Typically, a blockchain startup develops a digital product or service and sells utility tokens to their users, which in turn, can use it to buy different services in the application. For example, a "car-ride" token could be used to pay a ride with a ride-hailing company.