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What are native tokens?

'Native tokens' is Cardano’s feature that enables the creation of multi-purposed assets. Users can create their own tokens that interact with the blockchain just like ada. Tokens can be fungible (interchangeable) or non-fungible (unique), and act as payment units, rewards, tradable assets, or information holders. There is no need to create smart contracts to handle native tokens, which removes a layer of added complexity and potential for errors.