Sirwin
Sirwin

Token

511 Articles 17 Followers

A token is a unit of value that represents multiple facets, such as monetary value, voting influence et al, in a blockchain network. Blockchains do not necessarily need a token to function - IBM’s Fabric and R3’s Corda are examples of two blockchains that eschew tokens. 

Although blockchain networks can function without the need for a token, these networks lose much of the benefits that come with the use of a token - user incentivization, for example. However, it is true that some enterprise level permissioned networks would gain benefit from simply deploying a distributed ledger without a token.

Several kinds of tokens exist, though they have informally been categorized as being either utility tokens or security tokens. Utility tokens are those that let a user further avail a platform’s services or products - Basic Attention Token (BAT) is a good example of a utility token. Security tokens are more like traditional investments - these tokens are those for which the user expects some kind of return after a period of time.  

Another important element of a digital token is the fact that it can be used as a virtual representation of a physical or traditional asset, such as gold, real estate and commodities. This has several benefits for the investor. 

By tokenizing a piece of land or gold into fractional, digital units, it allows investors to make a fractional investment in the asset, affordably and conveniently, as they do not have to pay a large sum or worry about maintenance and possession. This is perhaps the most discussed property of tokens.


What Is a Utility Token? Security Tokens vs Utility Tokens

11 Feb 2023 7 minute read 9 comments StealthEX

When it comes to tokens and their categories, it’s clear that they all have their own functionality, which differs from each other. When talking about tokenization and the types of tokens, we can usually identify a certain number of token groups, inc...

Understanding tokenomics: the backbone of cryptocurrency valuations

7 Mar 2024 3 minute read 0 comments Sheepy

Indeed, in the pulsating heart of the cryptocurrency world, 'tokenomics' is much more than an over-used buzzword; it represents a pivotal framework underlying the effectiveness and the value of the industry's digital currencies. Tokenomics provides t...

Utility Token vs Security Token

13 Jan 2023 1 minute read 4 comments StealthEX

The main difference between security and utility tokens is the purpose of their emissions. What Is a Utility Token?  These are tokens with the help of which users get access to the software utility (or service) of the blockchain platform. They do not...

What Is a Security Token? Utility Tokens vs Security Tokens

14 Feb 2023 7 minute read 5 comments StealthEX

In times when tokens have become popular alternative means of payment and exchange, data tokenization and its models started playing a crucial role in the global economy. In this article, we’ll try to do an overview of security tokens and compare the...

Lots of bad cryptocurrencies now command exorbitant prices, Bitwise warns. Which ones are they?

25 Mar 2024 2 minute read 0 comments hashlytag

The rise of cryptocurrencies, driven by Bitcoin, has also led to a sharp increase in the prices of venture projects. Investors should approach them with caution. The cryptocurrency market is currently experiencing a meteoric rise, especially thank...

BlackRock launches BUIDL, tokenized asset fund on Ethereum, while the ETF remains on hold

22 Mar 2024 1 minute read 0 comments KMatt

Asset management giant BlackRock has entered the world of tokenization with the launch of BUIDL, a tokenized asset fund on the Ethereum network. The fund, denominated in US dollars, will invest in cash, US Treasuries and repurchase agreements, offeri...

The integration of BTT with AI computing.

11 Mar 2024 1 minute read 0 comments Kriptux

The founder of TRON Blockchain, Justin Sun, announced through a post on the Social Network X the integration of BitTorrent (BTT) with Artificial Intelligence Computing (AI). As expressed by Justin Sun, BitTorrent's global base of millions of users an...

How to Analyze LEO Token?

6 Mar 2024 3 minute read 0 comments Footprint Analytics

  Author: [email protected] Data Source: LEO Token Dashboard (Only data on Ethereum included) Token analysis plays a pivotal role in the realm of cryptocurrency and digital assets. It is the process of delving deep into the data and market be...

Hold Up! Is That New Crypto Project Legit Before You Click "Connect"?

26 Feb 2024 1 minute read 2 comments Cryptofab

Remember how we talked about those potential Linea and Scroll airdrops? I know, exciting stuff! But some of you reached out, though, saying it's tough to trust brand new projects, especially with all the scams out there. That's why I wanted to share...

The VESTN Syndicate

14 Feb 2024 2 minute read 0 comments VESTN_io

Introduction VESTN emerged from the challenges prevalent in real estate investment. With a collective experience exceeding 50 years, our three founders have successfully navigated transactions totalling over $180 million. Throughout this journey, the...