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7 compelling use cases of crypto tokens
1. 7 Compelling Use Cases of Crypto Tokens
Tokenization is the process of creating virtual tokens using unique
identification symbols for confidential data with integrating all the original
information in that data. The data will be replaced by tokens which are
encrypted and highly secured. Not only virtual data, tokenization is also
applicable for physical objects like Arts, lands, etc…
Art, Music & Games
Crypto tokens are becoming popular among artist and content creator
communities in recent times. Today art works are being tokenized and
displayed for online sale rather than going for traditional long term process.
Not only artworks, this content, music and games are being tokenized in the
name of NFT token which upholds the ownership of those creations.
It appears best for all artists and creators are looking for NFT Token
development as they don’t need to seek buyers and also false claims of
ownership can also be averted.
2. Collectibles
Probably everyone will be aware of digital cats: cryptokitties. It is a
blockchain game developed on the Ethereum platform which enables the
players to purchase, collect, adopt and trade digital cats(tokens). Here the
tokens are represented as digital cats(cryptokitties). Well developing a rare
and unique cryptokitties will have additional value too.
Trading & Lending
Tokens are most similar to cryptocurrencies. Actually they are the next level
of crypto’s. Most of the crypto exchanges allow its users to make trade
using tokens. Likewise cryptocurrencies, token are also being utilized for
making trade. Moreover, tokens are also used for lending as users can get
money by providing the tokens as a mortgage.
Crowdfunding
The concept of tokenization has been used for crowdfunding in the modern
days. We can take ICO(Initial Coin Offering) as a perfect example for this use
case. In ICO concept, a company which is looking forward to raise funds for
its business idea. Investors who get attracted with the business idea will
provide funds for the company and will get a digital token in return for their
investment.
Asset Tokenization
Any tangible or intangible asset can be transformed as token. Today people
are tokenizing their assets to make a sale quickly without any restrictions.
Real Estate tokenization suits best for this case.
Real estate tokenization is a process of creating fractional ownership of the
land in the form of digital tokens with the help of blockchain technology.
With this method, the long term process of buying property can be avoided
and also anyone from anywhere of this globe can buy a property. There
3. won’t be any border limits too. Both Property owners and buyers can sell &
purchase properties with ease.
Logistics
Logistics sectors work with a method of issuing proof of ownership which is
called a bill of lading. Usually this method takes time as well as causes
several issues like delay in delivery and difficulties in reclaiming goods if the
bill of lading is lost.
To avoid these difficulties, CargoX suggests the tokenization concept. They
develop an open system on the Ethereum platform which is called Smart
B/L. The working functionality of this smart B/L is similar to token system.
Digital Currency & Payment
Digital tokens are also being used for payment online as a digital currency.
Crypto tokens can also be assumed as a type of currency available in digital
form. These tokens uphold several benefits by going under the blockchain
system as it is fast to transact, done without intermediaries, no border
limitation and much more.
One of the famous example for digital currency token is Stablecoins. Their
value represent from fiat currencies(dollars, Euro, British Pound, etc) which
is used for payment in blockchain. Specifically we can TetherUS otherwise
called as USDT as a instance, as TetherUS is digital token that represent US
dollars. Moreover, it is one of the top five tokens according to market
capitalization with a value of over two billions USD in 2018.
Initially, Smart B/L will be created and sent to the exporter. Once the
importer transfers the money to the exporter, the exporter will provide the
ownership of the smart B/L token to the importer. With this token, the
importer can claim the goods.
Adoption towards virtual currencies and tokens are increasing greatly as it
resembles one of the best and safest processes to manage & transfer the
assets.
4. Adopt it with the leading token development company for seamless
experience.
