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The Future Of Finance Is Blockchain

Any Web 3 or Blockchain business cannot function without a cryptocurrency. These are the backbone of any blockchain project. Token delivers a huge benefit over crypto coins by building on top of another blockchain saving time and development costs.

What Is A Token?

A Token is a form of virtual currency that crypto-projects develop for the transaction of value over a blockchain platform. It is very similar to the use of money in everyday life.

Security Vs. Utility Tokens

Security Tokens are those cryptocurrencies that are readily exchanged with fiat currency (USD, INT, GBP, etc.) and are used as a form of transaction over many platforms. An example is Tether (USDT) which has been built on Ethereum Blockchain and is available across hundreds of exchanges. Security Tokens often attract tax liability.

Utility Tokens, on the other hand, are exchanged with other cryptocurrencies and not with money. They are platform-specific and often do not attract any tax liability. Examples are Swap (Uniswap), Basic Attention Token (Brave Browser), etc.

Coins Vs. Tokens:

It is natural for anyone to assume that cryptocurrency coins and tokens are the same. However, they are not.

A coin is a cryptocurrency that has its own blockchain, for example, Ether has Ethereum Blockchain. On the other hand, a Token is a cryptocurrency that is built on another coin's blockchain.

Necessity Of Token Development

Tokens are the basic units of accounting and transfer of value in any blockchain. Almost every blockchain product either has its own token or has used some kind of token to transact in the platform. They are a necessity in blockchain projects because:

  • People trust tokens because they are secured by blockchain's immutability and decentralised nature.
  • Blockchains are implicitly secure.
  • They can be readily exchanged with money or with another cryptocurrency.
  • Utility Tokens have little to no tax implications all over the world.
  • You can implement zero gas fees (no transaction cost).
  • Proof-of-Stake tokens can generate additional revenue for you and your platform's users.

Best Use Cases:

The best uses of tokens depend upon the purpose for which they are to be used:

Trading

Tokens can be developed for the sole purpose of transactions. Cryptocurrency markets are highly volatile and hence traders always look for opportunities. Limited supply tokens become more valuable as their demand increases due to inbuilt or external factors.

Blockchain Gaming

Gaming has a major utility for tokens to reward players for their achievements. Further, tokens can be redeemed by players, hence establishing a Play-to-Earn business model. Users can gain something of monetary value from gaming which was earlier not possible.

Metaverse

Virtual lands and spaces are all about the latest trends in the metaverse. For buying, renting, selling, and auctioning land, you need a token that is native to your platform and one which can be readily redeemed for money.

Online Gambling

With a high level of restrictions across the world, online gambling and betting provide a lot of relaxation due to restricted access. Tokens can serve as chips that were used in casinos earlier. Further, chips can be stolen, destroyed, or the gambling owner can refuse to pay. Tokens can be redeemed anytime for other cryptocurrencies as well as money.

Reality Shows

Voting in reality shows can be tokenized, providing security and legitimacy through blockchain. Manipulation of votes is not possible, and people cannot use multiple votes.

Retail Businesses

Almost every major retail business offers coupons that can be tokenized so that they are not lost, stolen, or expired. Even alerts can be set for tokens that are liable to expire, increasing customer awareness and consumer engagement.

Current Challenges:

Regulations:

Currently, the broad economies are yet to put sufficient legal recognition for tokens. Major economies like India have already started the process. With the Indian Cryptocurrency bill around the corner, consumer trust and trust protection mechanisms will be established soon.

Loopholes:

Many tokens that are developed by non-experienced companies are likely to include several discrepancies and loopholes that are only detected when hacked. Global Vox, with its two decades of experience, knows very well why rushing things might result in failures.

General Public's Familiarity

The concept of cryptocurrencies is yet to be familiarized with the general public. India has its own advantage due to the Digital India Program that emphasizes high-speed internet and digitization. We believe a giant internet economy like India has ample scope for cryptocurrency markets, metaverses, DeFi, and a lot more.

Global Vox's The Blockchain Team

Global Vox solutions can develop coins and tokens that we test thoroughly to perfection. Although the technology is evolving fast, we are rapidly catching up with the latest developments so that our clients can better focus on their business. Furthermore, our team is not only skilled and certified by IIT Kharagpur but also has experience of two decades as a global information technology solutions provider.

Pratik Jain
Pratik Jain
Director@GlobalVox | Founder - BiG Deal - blockchain based auction platform | Certified crypto and blockchain expert | ICO-IDO consultant