In the current era of Blockchain evolution a new concept has emerged: tokenization. Tokenization is an intrinsic part of the Blockchain technology that serves the purpose of platform identification and accessibility.
Every Blockchain platform is powered by tokens, sometimes also referred to as “coins.” Bitcoin is a token, as is Litecoin, Dash, and other currencies that function over a Blockchain. While tokens can represent money, as in the case of the above, they can also represent other things.
The demand for a particular Blockchain product is usually the main determinant of the value and eventual market price of its token. This is why there is a variation in the prices of different altcoins in the Blockchain environment.
For example, Bitcoin is more readily accepted by merchants than Litecoin, and is consequently more valuable.
Ethereum, despite coming after many older altcoins, remains the third most valuable cryptocurrency in existence behind only Bitcoin and the its recent fork, Bitcoin Cash.Ethereum’s value is largely determined by the demand for its platform by distributed application (dApp) developers.
Many of these developers issue tokens to grant access to their services, essentially building their own Blockchains atop Ethereum’s platform. In many cases, developers pre-sale their tokens as part of an initial coin offering (ICO), and they usually accept Ethereum’s token “ether” as payment.
In essence, the organic value of a given token or cryptocurrency is determined not just by the functionality, but the demand for its Blockchain product.
There are numerous Blockchain products in existence claiming to offer different solutions to various problems. Many more are still in the development. Below are some examples of Blockchain products and what they do:
Steemit is a social network that rewards users who participate in various ways. The Steemit token is called STEEM. It is used to reward content creators and curators of the best content on the site.
Dash, which stands for “Digital Cash,” is a fork of Bitcoin that is fine-tuned for more privacy and instant transactions. The platform’s token is called DASH. Dash is also self-funded through its own Blockchain (a portion of mining rewards fund the currency’s development) and features a working governance model.
The token for Zcash is called ZEC. ZCash is a cryptocurrency that grew out of the Zerocoin project which aims to improve anonymity for Bitcoin users.
Zcash payments are published on a public Blockchain, but users are able to use an optional privacy features to conceal the sender, recipient, and amount being transacted....continue reading: https://cointelegraph.com/news/tokenization-the-force-behind-blockchain-technology
The power of tokens
Every Blockchain platform is powered by tokens, sometimes also referred to as “coins.” Bitcoin is a token, as is Litecoin, Dash, and other currencies that function over a Blockchain. While tokens can represent money, as in the case of the above, they can also represent other things.
The demand for a particular Blockchain product is usually the main determinant of the value and eventual market price of its token. This is why there is a variation in the prices of different altcoins in the Blockchain environment.
For example, Bitcoin is more readily accepted by merchants than Litecoin, and is consequently more valuable.
The force behind Ethereum
Ethereum, despite coming after many older altcoins, remains the third most valuable cryptocurrency in existence behind only Bitcoin and the its recent fork, Bitcoin Cash.Ethereum’s value is largely determined by the demand for its platform by distributed application (dApp) developers.
Many of these developers issue tokens to grant access to their services, essentially building their own Blockchains atop Ethereum’s platform. In many cases, developers pre-sale their tokens as part of an initial coin offering (ICO), and they usually accept Ethereum’s token “ether” as payment.
In essence, the organic value of a given token or cryptocurrency is determined not just by the functionality, but the demand for its Blockchain product.
Blockchains and their tokens
There are numerous Blockchain products in existence claiming to offer different solutions to various problems. Many more are still in the development. Below are some examples of Blockchain products and what they do:
Steemit
Steemit is a social network that rewards users who participate in various ways. The Steemit token is called STEEM. It is used to reward content creators and curators of the best content on the site.
Dash
Dash, which stands for “Digital Cash,” is a fork of Bitcoin that is fine-tuned for more privacy and instant transactions. The platform’s token is called DASH. Dash is also self-funded through its own Blockchain (a portion of mining rewards fund the currency’s development) and features a working governance model.
ZCash
The token for Zcash is called ZEC. ZCash is a cryptocurrency that grew out of the Zerocoin project which aims to improve anonymity for Bitcoin users.
Zcash payments are published on a public Blockchain, but users are able to use an optional privacy features to conceal the sender, recipient, and amount being transacted....continue reading: https://cointelegraph.com/news/tokenization-the-force-behind-blockchain-technology