Cryptocurrency token
A cryptocurrency token is a token used to represent a fungible or tradeable asset or a utility that resides on its own blockchain. A token can also serve as a substitute for other things.
All edits by Vladislav Mozgovoi
The term cryptocurrency token can be used to represent many different forms of "tokenized data" that represents a cryptographic string of letters and numbers. For example, a cryptocurrency token can be used to describe a cryptocurrency such as Bitcoin, or be used to refer to a digital asset existing on another cryptocurrencies blockchain such as an ERC-20 token on the Ethereum blockchain. If no specific context is given a token should be assumed to represent a cryptocurrency that exists on another cryptocurrencies blockchain.
- A token is a type of digital crypto-assets, giving owners conferring the right to own something assets: product, service, or security.
- The term cryptocurrency token can be used to represent many different forms of "tokenized data" that represents a cryptographic string of letters and numbers. For example, a cryptocurrency token can be used to describe a cryptocurrency such as Bitcoin, or be used to refer to a digital asset existing on another cryptocurrencies blockchain such as an ERC-20 token on the Ethereum blockchain. If no specific context is given a token should be assumed to represent a cryptocurrency that exists on another cryptocurrencies blockchain.
The token is very similar to a digital signature. But if the digital signature is regulated by government law then the token is not. It created many problems for using tokens in business and everyday life. If you bought a token desfor a car, that confers your right to own the automobile, you would not get it through the court. That means, the first holder of the token can sell it for you but must not give you real assets.
The main attribute of the token against the non-fungible token (NFT) is standardization. You can create a token for fiat currency, gold, oil, and other things that have a definite standard. But for non-standard things like pieces of art, second-hand goods, etc, using NFT.
Usually, the tokens issuing on their own or third-party blockchain networks. That created different types with individual characteristics: TRC-20 (Tron), QRC-20 (Qtum), NEO-5 (NEO), ERC-20 (Ethereum), BEP-20 (Binance).
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