7 Token Types: How Blockchain Creates a Crypto-Economy

7 Token Types: How Blockchain Creates a Crypto-Economy

The true potential of blockchain is often misunderstood or ignored entirely.

Many assume "currency" is the primary function. Others think of tokens like owning shares in a company. But in reality, blockchain enables much more than just cryptocurrency.

Assuming this technology is only for "currency" is a massive understatement. It would be like saying "email" is the sole purpose of the internet.

Functional token rights are creating an entirely new cryptoeconomic system. And we have so much more to discover beyond Bitcoin.

Here are 7 types of token utilizing a distributed ledger.

#1 - Payment/Currency Token

A token can be used to send and receive payments between parties.

  • Bitcoin
  • Ripple
  • Nano

#2 - Access/Utility Token

A token can be used to access and utilize applications/software/networks.

  • Lisk
  • Ether (Ethereum network)
  • Gas (NEO network)

#3 - Voting/Governance Token

A token can be used to permit voting and governance rights.

  • Decentralized Autonomous Organizations (not a specific token)
  • Digix
  • CryptoCurve

#4 - Profit/Reward Token

A token can be used to collect a share of profits or rewards.

  • Iconomi
  • TIME
  • ETH Bet

#5 - Gaming/Contribution

A token can be used to contribute to a game or bet.

  • DBET
  • FirstBlood
  • Edgeless

#6 - Security/Staking Token

A token can be used to secure a network and incentivise decentralization

  • VeChain (Thor)
  • Komodo
  • NEO

# 7 - Multi-Purpose Token

A token can use a combination of rights for multiple purposes.

  • Binance Coin
  • Golem
  • Augur

Entering a cryptoeconomy...

We are in the early stages of a new tokenized economy. Only time will tell what other types of tokens the world of blockchain will bring.

Let's hear from you...

Did I miss any token types?

What other token rights do you think would be useful?

What functional token/crypto should I know about?

John Andrews

Creative Problem Solver | Retail Co-Innovation Leader | Marketing Technologist

5 年

Love this - "Assuming this technology is only for "currency" is a massive understatement. It would be like saying "email" is the sole purpose of the internet." It's like thinking the purpose of social media is marketing (wait, what it isn't? Some marketer will think when they read this)?

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