A token-based system is a method of managing access and permissions using digital tokens. These tokens serve as a form of identification or proof of authorization, allowing users to access specific resources or services. For example, in a blockchain environment, tokens can represent ownership or rights to a digital asset. In such systems, tokens can be generated, transferred, and validated without needing a central authority. This decentralization enhances security and transparency, as each transaction is recorded on a distributed ledger. Users can interact with various applications or platforms by presenting their tokens, streamlining the process of authentication and access control.