The MobyCrypt platform enables creation and distribution of tokens based on blockchain technology. Using the mechanics of this technology and few econmic rules we enable tokenization - design, issuing and using this modern marketing tool, which is Personal/Loyalty Token.
Token is the digital record of ownership.
Token doesn't exist in physical form, it's only the digital record saved in database. It has 2 main characteristics: quantity and ownership. In other words: token is the digital record saved in database describing some quantity owned by someone. Simplified example:
21,000,000.0 -> xxx
Given assignment describes ownership of 21 millions of units belonging to some entity xxx.
Digital entry of token exists in blockchain database within smart contract. Contracts are independent: given assignment of 21 millions of units belonging to entity xxx is totally independent when exists as the separated smart contracts.
One of the main characterstics of contract is its immutability. It means once created and saved in blockchain, contract cannot be changed. It's assured by mechanics of blockchain network based on the complex cryptography.
So token is the smart contract existing in blockchain database, describing some quantity assigned to some entity. In technical terminology these entities are called accounts. We are the owners and we control the account if know its public and private key (in simplified words: address and password). If we control the account, for which exists token assigment in the blockchain database - we are owners of these tokens.
The owner (and only) has the possibility of passing any quantity (no more than owned) to other account. Given record:
20,000,000.0 -> xxx,
1,000,000.0 -> yyy.
describes the ownership of 20 millions tokens by account xxx and 1 tokens million by account yyy.
To summarise: token is the smart contract saved in the blockchain database. It aggregates the assigments of token quantities to accounts. Owner of the account has total control over the tokens - there is no possibility to take it or steal it, however the owner has the possibility to pass the tokens to other account.
Smart contract is relatively new technical term describing software existing and running within blockchain technology.
Contract is the computer program. The computer program consist of the data and the functions. Smart contract is then the program and the describing data, saved in blockchain database and executed also using this technology.
The data of the token are all records describing the ownership. Functions of the token allow for example checking the quantity of owned tokens, or described previously transfer of tokens to other account.
Personal token or loyalty token are the terms used to describe tokens, which underline the way to use tokens.
Personal token describes the token issued by some person (e.g. sportsman, artist) - most often in order to promote the brand.
Loyalty token is the token issued by some company, focused on engagement of the customers and marketing activities.
Both loyalty and personal tokens are used to interact with targeted audience. No matter if it's the fan of the artist or the customer of the company - they all can receive tokens from tokens creators as the benefit.
The value of tokens is determined by the possibility of use - proposed by the tokens creator. The issuer of tokens proposes the examples of use and the benefits of having/collecting the tokens. After all it's also the role of issuer to award the owners of the tokens.
Given examples describe how to use and benefit from the software based on the cutting-edge and decentralized technology.
The evolution of the blockchain causes the continous change in possibilities offered by the technology (decentralized applications) as well as interesting scenarios of use.
