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by Finage at March 19, 2021 5 MIN READ

Crypto

5 Must Knowns about Cryptocurrency for Entrepreneurs

In our blog post today, we will talk about a subject that many investors or new entrepreneurs must learn. Cryptocurrency is now indispensable for financial transactions. There are some methods for using this currency. We will touch on exactly this point in this blog post. We tried to bring the most valuable points for your side by side. let's continue.

 

 Cryptocurrency Token Types

Crypto in the race to adopt the currency as mass, area, blockchain technology to project a full range of business and thousands who want to apply to consumer needs. Just last year, the market value of the crypto industry has increased dramatically. And like the thought of cryptocurrency gonna underlines the emerging potential of Facebook's Libra announcement stabilco planned in June 2019 did not want anything to do with the earlier digital money has attracted the attention of many people, including dissidents.

However, as Facebook quickly discovered, led to more questions than it answers announcements. Available crypto community and regulatory agencies, among various types depending on their use of cryptocurrency, made fast distinctions. As a result, most people, how not to be associated with their use status only life, but also about usage of terminology is extremely difficult to comprehend.

a classification system to help explain the different types of cryptocurrency and navigation was implemented in people's views. A complete understanding of crypto begins by reviewing the most common type of token. It would be correct to list them as follows:

1-Platform tokens

2-Security tokens

3-Transaction tokens

4-Benefit tokens

5-Governance tokens

 

Cryptocurrency Token Overview of Types

Cryptocurrency tokens regulate the action of changes in the ecosystem blockchain means (treated) digital assets can be used as interchangeable. At best, they are defined by how they serve the end-user. Token, consider the food that feeds blockchain-based ecosystems. Each type of token provides unique features based on usage. However, a marker can fit more than one category, so these groups are not mutually exclusive.

 

1. Platform Tokens

Platform markers, decentralized applications for different uses (apps) use the blockchain infrastructure to deliver.

Platform tokens, benefit from blocks built on the chain, gains the ability to support advanced security and transaction activity. Platform tokens, gaming, and digital collections (crypto kitties!) The location of the platform manages the global advertising market and range of use scenarios up to industry.

 

2. Security Tokens

"Security token", the term emerged as a result of increased regulatory concerns. The US Securities and Exchange Commission such as regulatory authorities tried to identify the crypto-currency using terminology that is grappling with the current legal definition. As a general securities company, trust, government, or issued by another entity and reminiscent of an ownership stake and a debt, entitlement to gain share, right or other similar legal rights in the property distribution. Types of securities, as well as others, bonds, bonds, stocks, options, warrants, and stock and includes among investors bought and sold, or otherwise transferred freely.

While not yet ubiquitous, security tokens are tokens that serve as direct, on-chain representations of real-world securities or tokens, which are on-chain tools that serve a similar purpose for blockchain projects and/or digital assets.

Security tokens can represent property interests.

A token of real estate, equipment, payable invoice, or in a business situation represents ownership of an asset chain off as, similar to the stock shares, the value of securities tokens depends on the valuation of the direct presence; No matter how valuable asset, it becomes valuable coins.

 

3. Transaction Tokens

Transaction tokens are used to trade - they serve as units of account and are exchanged for goods and services. These tokens generally function like traditional currencies but provide additional benefits in some cases. In addition to its function as a currency, Dai offers transaction performance to other networks. All of the process tokens are not a currency. In global supply chains and other industries, the flexibility of the contract does not change the nature of the blockchain and clever uses the process token to apply to their operations.

 

4. Utility Tokens

Benefits markers, will be integrated into an existing protocol in the blockchain and this protocol is used to access the service. not created to invest directly in securities such as markers, but may be used for the payment of ecosystem services in particular. Token platform while providing the necessary network activities to strengthen the economy of the platform, because it provides security for the utility token, the token is a synergistic relationship between a platform and services.

 

5. Governance Indicators

Decentralized protocols continue to multiply and evolve, the need to improve the decision-making process around them is critical. Chain-house governance by all stakeholders to collaborate on how to manage the system allows the use of discussion and vote. Governance coins, blocks chain based feed their voting systems because they often give signals support for the changes proposed and used to vote on new proposals. The Maker Protocol, governance token is mkr.

 

Final thoughts

Cryptocurrencies worldwide and most importantly still developing. To summarize, the main icon types are: Platform tokens, support dapper in the blockchain on board.

 

Security tokens represent the legal ownership of physical or digital assets.

Transaction tokens serve as the unit of account and replaced with goods and services.

Assistant software tokens can be integrated with an existing protocol, and this protocol is used to access the service.

Governance tokens, blockchain-based feeds the voting system.

 

All of the above-described various cryptographic token currency serves to the purpose and may overlap some uses, including the versatile Dai stable. Identifying each species is an important step towards presenting how a deeper that used understanding of blockchain technology by organizations such as Maker without fluctuation of individuals and businesses to help them realize the benefits of digital currency.

 

As the Finage company, we aim to present our articles on more detailed topics such as US Stock API, Live Forex Market Data API, and Algo Trading API in the near future. Beyond that, you can browse our articles on topics such as Finage Stocks Data API, Finage Forex Data API, Finage Cryptocurrency Data API. For your possible questions, Finage consultants will welcome you with team spirit and take care of your questions.

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