Loading ...Token (English token - sign, symbol; identification mark; token) is a digital asset created on the basis of blockchain technology.
It is a form of digital representation of assets or rights that can be exchanged and transferred on a blockchain.
Tokens can be used in several cases:
- Inside applications. Application users buy tokens as internal currency to pay for services and goods within the blockchain system.
- For lending. Tokens allow you to invest fiat (“physical”) money in cryptocurrency projects with high liquidity rates. Based on the principle of profitability, such tokens resemble borrowed bonds: they can be used as a tool for financial transactions, while they guarantee a fixed return over a certain period.
- For ICO. The issue of tokens allows anyone to invest in a startup with a guarantee of receiving a share of the income or commissions for transactions of all cryptocurrency in the payment system. Unlike a traditional IPO, ownership of blockchain shares does not give you the right to participate in the management of the company (unless specifically discussed).
The first platform for issuing tokens by users was the Ethereum cryptocurrency platform. It is a decentralized virtual machine running on the basis of smart contracts.
You can also issue your tokens on the Waves, NEM, Nxt and EOS cryptocurrency platforms. They all have their advantages and disadvantages, but in general they are proven tools for issuing your own tokens.
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