7 Compelling Use Cases of Crypto Tokens Tokenization is the process of creating virtual tokens using unique identification symbols for confidential data with integrating all the original information in that data. The data will be replaced by tokens which are encrypted and highly secured. Not only virtual data, tokenization is also applicable for physical objects like Arts, lands, etc…
Art, Music & Games Crypto tokens are becoming popular among artist and content creator communities in recent times. Today art works are being tokenized and displayed for online sale rather than going for traditional long term process. Not only artworks, this content, music and games are being tokenized in the name of NFT token which upholds the ownership of those creations. It appears best for all artists and creators are looking for NFT Token development as they don’t need to seek buyers and also false claims of ownership can also be averted.
Collectibles Probably everyone will be aware of digital cats: cryptokitties. It is a blockchain game developed on the Ethereum platform which enables the players to purchase, collect, adopt and trade digital cats(tokens). Here the tokens are represented as digital cats(cryptokitties). Well developing a rare and unique cryptokitties will have additional value too. Trading & Lending Tokens are most similar to cryptocurrencies. Actually they are the next level of crypto’s. Most of the crypto exchanges allow its users to make trade using tokens. Likewise cryptocurrencies, token are also being utilized for making trade. Moreover, tokens are also used for lending as users can get money by providing the tokens as a mortgage. Crowdfunding The concept of tokenization has been used for crowdfunding in the modern days. We can take ICO(Initial Coin Offering) as a perfect example for this use case. In ICO concept, a company which is looking forward to raise funds for its business idea. Investors who get attracted with the business idea will provide funds for the company and will get a digital token in return for their investment. Asset Tokenization Any tangible or intangible asset can be transformed as token. Today people are tokenizing their assets to make a sale quickly without any restrictions. Real Estate tokenization suits best for this case. Real estate tokenization is a process of creating fractional ownership of the land in the form of digital tokens with the help of blockchain technology. With this method, the long term process of buying property can be avoided and also anyone from anywhere of this globe can buy a property. There
won’t be any border limits too. Both Property owners and buyers can sell & purchase properties with ease. Logistics Logistics sectors work with a method of issuing proof of ownership which is called a bill of lading. Usually this method takes time as well as causes several issues like delay in delivery and difficulties in reclaiming goods if the bill of lading is lost. To avoid these difficulties, CargoX suggests the tokenization concept. They develop an open system on the Ethereum platform which is called Smart B/L. The working functionality of this smart B/L is similar to token system. Digital Currency & Payment Digital tokens are also being used for payment online as a digital currency. Crypto tokens can also be assumed as a type of currency available in digital form. These tokens uphold several benefits by going under the blockchain system as it is fast to transact, done without intermediaries, no border limitation and much more. One of the famous example for digital currency token is Stablecoins. Their value represent from fiat currencies(dollars, Euro, British Pound, etc) which is used for payment in blockchain. Specifically we can TetherUS otherwise called as USDT as a instance, as TetherUS is digital token that represent US dollars. Moreover, it is one of the top five tokens according to market capitalization with a value of over two billions USD in 2018. Initially, Smart B/L will be created and sent to the exporter. Once the importer transfers the money to the exporter, the exporter will provide the ownership of the smart B/L token to the importer. With this token, the importer can claim the goods. Adoption towards virtual currencies and tokens are increasing greatly as it resembles one of the best and safest processes to manage & transfer the assets.
Adopt it with the leading token development company for seamless experience.