A utility token is a type of digital asset that provides users with access to a specific product or service within a blockchain ecosystem. Unlike traditional currencies, utility tokens are not primarily designed for investment but serve a functional purpose, such as granting users the ability to participate in a network, pay for services, or access features. They are often issued during a process called an Initial Coin Offering (ICO). Utility tokens are commonly used in various applications, including decentralized finance (DeFi), gaming, and social media platforms. By holding these tokens, users can engage with the platform's offerings, such as voting on governance decisions or accessing premium content. This creates a direct relationship between the token and the services provided, enhancing user engagement and utility.