The success and popularization about what blockchain and cryptocurrencies are has allowed the emergence and growth of a type of crypto-asset in recent years and that already occupies important spaces in the investment world: the digital token.
It is the cryptographic digital representation of a good for the purpose of trading it on the market, and this good can be a real asset, intangible, digital, a right, product, service, and even the sale of cryptocurrencies.
Tokenization – the association of an asset with one or more tokens – is an effective method of offering assets to a wider audience, ensuring the security and transparency of operations and promoting better returns for investors.
But do you know how the technology that produces these crypto-actives works?
What types of digital tokens exist and what are their characteristics?
BLOCKBR, a web 3.0 native company, will talk about the digital token and how companies and individuals can benefit from tokens by trading and investing better!
HOW THE DIGITAL TOKEN TECHNOLOGY WORKS
The digital token is created from the coming together of two essential and increasingly important tools in the growing digitalization of business: the blockchain and the smart contract.
BLOCKCHAIN
It is a distributed database – with no server or central control – made up of an immeasurable number of supercomputers, called nodes, capable of processing a large number of operations at very high speed.
- It has encryption and high-level data security and works as a kind of digital ledger: every movement, to create and sell tokens needs the validation of all network computers, without exception;
- For unanimous approval, the nodes must have the same balance position (of token offerors and tokenists), preventing one of the computers from being used for a fraudulent transaction;
- By definition, digital tokens are created and traded on public blockchains, with security and transparency guaranteed by the previous steps. However, a company can choose to develop and offer tokens through a private (proprietary) blockchain.
SMART CONTRACT
It is the encrypted digital document that contains all the conditions that will be practiced in the token offering.
- Duration of the offer;
- Number of tokens;
- Unit value of the token;
- Remuneration to investors (periodic or at the end of the project);
- Other obligations and rights of the parties;
- Execution triggers (conditions to execute each clause).
The execution of the smart contract is 100% electronic, without human interference, which guarantees that all clauses foreseen in it will be fulfilled within the defined deadlines and conditions.
WHAT ARE THE TYPES OF TOKENS?
PAYMENT TOKENS
Also known as payment tokens, they are actually cryptocurrencies, the first form of token we are aware of with bitcoin in 2009.
They emerged as a decentralized means of payment – with no external control – in direct transactions between the digital wallets of sellers and customers, but have also become a highly speculative investment asset.
The creation of the Real Digital, the official Brazilian digital currency, is underway.
NON FUNGIBLE TOKENS (NFT)
It is the token used to trade unique and unrepeatable assets. This is the best known category, for the million-dollar transactions involving NFT in recent years.
Other market sectors, where uniqueness and exclusivity are key features, such as arts, collectibles, entertainment, and blockchain games, have realized the quality and security of the technology and are betting on the non-fungible tokens.
UTILITY TOKENS
These are the utility tokens, a growing niche market as it is directly related to companies’ strategies of building customer loyalty and strengthening relationships. These crypto-actives are designed to offer unique products and services to customers.
As an example, we have loyalty and reward program tokens. The fan token is already widely used in many soccer clubs in Brazil.
Do you want to know more about what utility tokens are? Understand everything you need!
FINANCIAL ASSET TOKENS
The structured tokens category is another category with excellent growth prospects in the short and medium term, as it allows investments with predefined remunerations and terms.
They are also called receivables anticipation tokens and combine the need for companies to anticipate revenue without the high finance costs in the banking system with people’s desire to invest in financial assets and earn passive income.
The fractioning of receivables is the differential to increase the target audience and obtain more liquidity and profitability.
SECURITY TOKENS
Security tokens will be a strong trend in the market because they are backed by tradable assets: stocks, debentures, warrants, commodities, and bonds. These tokens support the companies’ fundraising strategy.
The ability to fractionate assets, a defining feature of tokenization, increases the potential audience, especially small investors. Tokenized securities are also regulated by the CVM, which increases the beginner investor’s sense of security.
Alongside financial tokens, security tokens comprise traditional financial products, with various liquidity indexes, which favor a diversification of the investment portfolio.
Click and learn more about what security tokens are!
REAL ASSET TOKENS
Super structured tokens are another category of cryptoactive with promising performance for the next few years, as they represent the tokenization of real assets.
- Real estate tokenization;
- Vehicles;
- Equipment and machinery;
- Stocks;
- Personal assets.
As we can see, the list is much longer, as every asset can be tokenized and this opens a very large window of opportunity for various audiences with asset fracking.
In this investment token, the gain will be in the fluctuation of the value of the tied asset.
TOKEN AS AN INVESTMENT, IS IT WORTH IT?
Absolutely, yes!
The token is an excellent vehicle for offering assets on the market, due to its ease of use, the speed of operations, the security of the blockchain, and the possibility of investing starting with little.
The tokenization market is increasingly diverse in the modalities and assets that can be tokenized. Therefore, it is possible to find great designs starting at 50 reals.
Without a doubt, a great way for the more cautious investor to buy tokens, get to know the world of tokenization and invest more and more!
WHERE TO START INVESTING IN TOKENS
The best way to start investing in tokens is to open an account on a token selling platform, such as BLOCKBR, an experienced asset tokenizing company that guarantees the security of transactions.
Registration is simple and fast.
Once approved, you will study the offers and can opt for those that match your investor profile as great remunerations and the best: the democratization of investment.
Open an account with BLOCKBR and revolutionize your life as an investor and your results!
BLOCKBR Digital Assets is a web 3.0 native fintech that unites technological innovation and digital knowledge to transform physical assets into digital ones, in the process of tokenization.
The supply of tokenized assets is democratic and decentralized, which makes the way of investing safe, simpler and more efficient.
We enable, structure, issue and offer tokens on our platform and beyond. Be aware that tokens depend on feasibility and regulatory factors.
Do you want to tokenize your business or part of it? Do you have a business solution and does it make sense to issue your own token ?
