What is a Blockchain Token?

Blockchains like Bitcoin and Ethereum are part of the incentive scheme for a group of people who do not know each other or do not trust each other organize themselves around the purpose of a specific blockchain. As per the Initial Coin Offering - ICO services India, Blockchain bases tokens enable “distributed Internet tribes” to emerge. Opposite to the traditional companies, blockchain disrupts classic top-down governance structures with DAOs - decentralized autonomous organizations. It bound people together not by legal entity and formal contracts, fully transparent rules that are written into the software.

There are numbers of differences between a cryptocurrency coin and token overwhelming for both new and experienced investors. The term token refers to any cryptocurrency that is built on top of an existing blockchain. For new investors, it might be best to think of these terms with a simple metaphor. Coins represent a cryptocurrency that is similar to the framework or foundation of a building. Also, tokens such as Initial Token Sale, Multicurrency Token Sale, represent a cryptocurrency which is added to an infrastructure. The process behind building an entirely new blockchain and launching a coin is considered to be more time consuming, costly and complex.

Selection of cryptocurrency depends on the project team. Coding a new blockchain is easier when the open-source codes are available. Also, designing a new blockchain to break past technical limitations of other existing blockchains require a lot of time and effort. Token based on existing blockchain network serve an integral role in the crypto market. Overall, with creating new coin and a new blockchain is less reliance upon other terms to make regular technical improvements.

Blockchain tokens such as Initial Token Sale, Multicurrency Token Sale embody the full potential of blockchain technology. Blockchain to get a full potential outcome, the technology needs to be recognized as a system capable of creating an objectively new ontological category.