Understanding how tokens work

Tokens are used to interact with decentralised applications that are built on top of different blockchains.

For example, Civic (CVC) is an application that keeps track of encrypted identities on the Ethereum blockchain. If you were to go on a foreign holiday, you'd need to confirm your identity repeatedly along the way, such as the airline, hotel, etc. If they are a partner of Civic, they can quickly identify you at various points. The CVC token is used for the transaction.