Blockchain basics: What is a blockchain token?
January 12, 2019
The astronomical change in the way technology is perceived by financial experts has made a lot of heads turn, the underlying strong data-centric and highly secure blockchain have a mad immense impact. The smart internet money that has made a lot of chaos and rally with the traditional fiat currency owes to the highly complex and secure blockchain that is a distributed ledger storing all information in the cloud space or network.
Storing data on a ledger that is in form of blocks, you can save as much as data, documents, information in the ledger that is in a distributed form, that is stored forever, there can be no editing made in the block stored as it is immutable. Another very interesting feature this technology has given is the
- A token that is digitally encrypted code, in form of digital asset that has no physical presence
- it is a mirror of the physical asset that is created in digital space, once the assets are tokenized they can be exchanged for real assets that are enabled with the help of blockchain technology
- though the cryptocurrency themselves are like tokens, as they can be converted into fiat currency depending upon the type of coins and the exchange where they are paired with
- Venture capitalist and ICO has brought the tokens into the mainstream, the number of new enterprises that have raised funds to meet their working capital requirements has drawn towards the tokenized concept of issuing the internal coin offerings
The basic idea was to make the ease of conducting transactions online using the blockchain, and understands the open system of owning assets in the digital form; however, there are questions about is coinspot safe and the security of the tokens itself in the digital form. Holding the tokens in private wallets that are encrypted to keep the codes safe is a minimal requirement.