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Token: what is it?

Token is a digital asset and a unit of account in the blockchain network. They are brought in the market to attract investment to a new project. The turnover of tokens is controlled in databases based on the blockchain. Special applications that use electronic signatures open access to the coins. Tokens became massively distributed thanks to the wave of interest to cryptocoins. Ethereum platform contributed to the popularity.

With the help of tokens, you can sell shares, monetize an additional service, give credits and lure investors.

There are three types of tokens:

  • Equity tokens (token-assets) are the company shares.
  • Utility tokens (service tokens) is a tool for financing internal transactions.
  • Asset-backed tokens (cryptocurrency) is a decentralized monetary unit, that has an expression in the value of real goods or services.

Tokenization is the accounting of the company assets in digital coins. Its main goal is to draw the attention of cryptocurrency owners and the Internet users.

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