Crypto Tokens

Crypto tokens are represent a particular fungible and the tradable asset or a utility created over an initial coin offering (ICO) that is often found on the blockchain.

• Cryptocurrencies are digital currencies used to the facilitate transactions (making and receiving payments) along a blockchain.

• Crypto tokens and Altcoins are the two types of cryptocurrencies with different functions.

• Crypto tokens are the type of cryptocurrency that represent an asset or specific use and the reside on their blockchain.

• Created through an initial coin offering (ICO), the crypto tokens are often used to raise funds for the crowd sales.

#Understanding Crypto Tokens:

Crypto tokens, which are also called "Crypto assets", are special kinds of the virtual currency tokens that reside on their own blockchains and represent an asset or utility. Most often, they are used to the fundraise for the crowd sales, but they can also be used as a substitute for the other things.

For example, any one can have a crypto token that represents x number of customer loyalty points on the blockchain that is used to manage such details for the retail chain. There can be another crypto token which gives entitlement to the token holder to the view of 10 hours of streaming content on a video-sharing blockchain.

Another crypto token may even represents other cryptocurrencies, such as a crypto token being equal to 15 bitcoins on the particular blockchain. Such the crypto tokens are tradable and transferrable among a various participants of the blockchain.

In essence, the cryptocurrencies and the altcoins are specific virtual currencies which have their own dedicated blockchains and are primarily used as a medium for the digital payments.

On the other hand, the crypto token operates on top of a blockchain that acts as the medium for the creation and execution of the decentralized apps and smart contracts, and the tokens are used to facilitate a transactions.

Crypto tokens are usually created, sold, distributed and circulated through the standard initial coin offering (ICO) process which involve a crowdfunding exercise to the fund project development.

These crypto assets often serve as transaction units on a blockchains that are created using the standard templates like that of the "Ethereum Network" which allow a user to create tokens. Such the blockchains work on the concept of decentralized applications or, smart contracts where the programmable, self-executing code is used to process and manage a various transactions occurring on a blockchain.

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