Internet access and the market launch of multiple devices and applications have created the conditions to consolidate and expand the ecosystem of the digital economy, in this aspect the blockchain technology has generated a turning point in the system, transforming economic relations between the agents. The blockchain has introduced a series of elements within this ecosystem such as cryptocurrencies and Tokens.
One of the concerns of people who are starting in this blockchain world is: are the cryptocurrency and Tokens synonymous? The answer is NO! The main features of Tokens and cryptocurrencies are explained in the following sections.
The term cryptocurrency, we quickly associate it with Bitcoin, a digital currency that is sustained in a distributed data network, and that quickly gained confidence within the community, due to the impossibility of falsifying said currency, this because each transaction is registered in a distributed network, in an open, transparent accounting book.
The cryptocurrencies comply with the three basic functions that characterize money, such as:
In the network there is a lot of information about cryptocurrencies and sometimes the term Token has to be used as a synonym of cryptocurrencies, commenting on a mistake.
A Token in addition to having the functions of a cryptocurrency as a unit of value, means of payment also has infinity of functionalities that has encouraged the creation of a variety of services and products.
In other words, a Token is a unit of value that uses the blockchain protocol of a third party. It serves as a backup or to exercise rights over the ownership or use of a product.
The Token are created only to be used within a closed environment, that is, within the ecosystem developed by a startup or company to carry out their project. An example outside the digital world are casino chips that can only be used within the casino, or tokens from amusement parks or theme parks.
Tokens can be classified according to their purpose:
