5 Types & Frameworks of Token: You Should know
In this article, we will discuss the token classification. 1. Crypto Currency- It used as a store-of-value or means of payment; the unit of account. Not issued by a central authority. It can be mineable or pre-mined. 2. Tokenized Asset- Gives access to assets like gold, even in a micro transcation scale. The underlying asset needs to be held by the issuing party. Thus introduces counterparty, risk, contrary to cryptocurrency. 3. Tokenized Platform- Platform- like network, not owned & operated by a single before users had limited roles in a platform, now roles are distributed and available to every network participant. Value (Financial/utility) flows freely through the network. 4. Token-as-a-share: A tokenized instrument to invest in companies (though currently on no regulated basis) that has characteristics of stock and currency(e.g. ICO replacing IPO). Shares on steroids: flexible, programmable via smart contract. Currently, a high uncertain token class as regulatory framewor