On a local area network, token passing is a channel access method where a packet called a token is passed between nodes to authorize that node to communicate. In contrast to polling access methods, there is no pre-defined "master" node. The most well-known examples are IBM Token Ring and ARCNET, but there were a range of others, including FDDI (Fiber Distributed Data Interface), which was popular in the early to mid 1990s. Token passing schemes degrade deterministically under load, which is a key reason why they were popular for industrial control LANs such as MAP, (Manufacturing Automation Protocol). The advantage over contention based channel access (such as the CSMA/CD of early Ethernet), is that collisions are eliminated, and that the channel bandwidth can be fully utilized without idle time when demand is heavy. The disadvantage is that even when demand is light, a station wishing to transmit must wait for the token, increasing latency. Some types of token passing schemes do not need to explicitly send a token between systems because the process of "passing the token" is implicit. An example is the channel access method used during "Contention Free Time Slots" in the ITU-T G.hn standard for high-speed local area networking using existing home wires (power lines, phone lines and coaxial cable).

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Related concepts (2)
Token Ring
Token Ring is a computer networking technology used to build local area networks. It was introduced by IBM in 1984, and standardized in 1989 as IEEE 802.5. It uses a special three-byte frame called a token that is passed around a logical ring of workstations or servers. This token passing is a channel access method providing fair access for all stations, and eliminating the collisions of contention-based access methods. Token Ring was a successful technology, particularly in corporate environments, but was gradually eclipsed by the later versions of Ethernet.
Local area network
A local area network (LAN) is a computer network that interconnects computers within a limited area such as a residence, school, laboratory, university campus or office building. By contrast, a wide area network (WAN) not only covers a larger geographic distance, but also generally involves leased telecommunication circuits. Ethernet and Wi-Fi are the two most common technologies in use for local area networks. Historical network technologies include ARCNET, Token Ring and AppleTalk.

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