Transactional tokens are used to conduct transactions; they act as units of account and are exchanged for goods and services. These tokens frequently function in the same way as traditional currencies, but in some cases, they provide additional benefits. Decentralized cryptocurrencies, such as Bitcoin and Dai, allow users to conduct transactions without the use of a traditional intermediary or central authority, such as a bank or payment gateway. Dai, in addition to serving as a currency, provides transactional performance to other networks. POA Network, for example, created xDai, a Dai-like transactional token that lives on a sidechain, allowing for fast, low-cost transactions.
Transactional tokens are not all currencies. Transactional tokens are used by global supply chains and other industries to apply the immutability of the blockchain and the flexibility of smart contracts to their operations.

Transactional tokens, in the context of blockchain and cryptocurrency, refer to digital assets designed primarily for facilitating transactions within a decentralized network. These tokens are an integral part of blockchain ecosystems and are used to represent value or ownership of assets. Ethereum, one of the pioneering blockchain platforms, popularized the concept of transactional tokens through its support for smart contracts.

Examples of transactional tokens include Ether (ETH) on the Ethereum network, Binance Coin (BNB) on the Binance Smart Chain, and Ripple (XRP) on the Ripple network. These tokens serve various functions, such as paying for transaction fees, accessing decentralized applications (DApps), and representing assets like stablecoins pegged to fiat currencies.

Smart contracts, self-executing agreements with coded terms, often utilize transactional tokens to automate and enforce contract terms within the blockchain. The use of these tokens enhances the efficiency and transparency of transactions by eliminating intermediaries and providing a tamper-resistant ledger.

Transactional tokens play a crucial role in decentralized finance (DeFi) ecosystems, powering lending, borrowing, and decentralized exchange platforms. As blockchain technology continues to evolve, transactional tokens remain at the forefront, driving innovation in peer-to-peer transactions, tokenized assets, and decentralized applications.