A token can refer to a lot of things, but mainly refers to portions of data that are passed between computer to computer using token ring networks. If a computer is equipped with a token, the computer is able to communicate with other computers on the token ring network. This term can also refer to programming or batch files. A token is a piece of data that is a lot bigger. A security token is something different entirely. It is a physical device that is often found on a keyring that generates security codes for use with networks and software applications.