Transactional tokens are used to transact—they serve as units of account and are exchanged for goods and services. These tokens often function like traditional currencies, but in some cases, provide additional benefits. For example, with decentralized cryptocurrencies, such as Bitcoin and Dai, it is possible for users to execute transactions without a traditional intermediary or central authority, such as a bank or payment gateway. In addition to its function as a currency, Dai offers transactional performance to other networks. For example, POA Network created xDai, a Dai-like transactional token that lives on a sidechain, allowing for fast, inexpensive transactions.
Not all transactional tokens are currencies. Global supply chains and other industries utilize transactional tokens to apply the immutable nature of the blockchain and the flexibility of smart contracts to their operations.