Custom tokens are unique digital assets created on a blockchain, often representing specific values or functionalities. They can be used for various purposes, such as rewards, access to services, or representing ownership of assets. Unlike standard cryptocurrencies like Bitcoin or Ethereum, custom tokens are tailored to meet the needs of specific projects or communities. These tokens are typically built using smart contracts, which are self-executing contracts with the terms directly written into code. Platforms like Ethereum allow developers to create and manage these tokens easily, enabling innovation in areas such as decentralized finance (DeFi) and non-fungible tokens (NFTs).