Within the blockchain ecosystem, it is common to hear the word ‘token‘, but in order to use it properly it is necessary to know what it refers to and what types there are.

Originally, tokens were objects that replaced money. Today, they are still objects, physical or digital, with a specific value within an ecosystem. The most recurrent example is casino chips, small pieces of plastic that represent money within that space.

Although the concept has been used for decades, it has been in recent years when it has gained more prominence, especially in the crypto world. In this sense, the token is a piece of code, in smart contract format, on the blockchain.

Below we show you the general classification that appears within the tokens:

 

Currency Token

This type of token refers to well-known cryptocurrencies, the most famous being Bitcoin (BTC).

 

Security Token

Security Tokens are a digital form of traditional investments. The person who acquires them seeks to invest in a project with the hope that its price will increase and with it, obtain a current or future financial gain.

Equity Token

These tokens are closely associated with security tokens and can be considered a type within them. Equity Tokens represent the ownership of an asset, generally the shares of a company.

 

Utility Token

Unlike security tokens, utility tokens are not designed as an investment; rather, they are used to enhance company processes. The token holder gets access to certain services or products of the company and can use it as a means of exchange within the ecosystem, and rewards or exclusive loyalty rights.

The iCommunity Labs token, ICOM, would be classified within this type of token. Through it, both companies and individuals can use the iCommunity platform and registration services, serving as a link to optimize, enhance and make our clients’ business models more scalable.

 

Apart from the previous classification, there are others, such as, for example, the one related to the fungible or non-fungible characteristic of the tokens, being able to find in it the famous NFT (Non-fungible tokens). NFTs are unique, original, and indivisible digital assets with verifiable digital properties to which a certain value is conferred. This type of tokens has metadata that distinguishes them from each other, making them unique and non-replicable.

 

Do you have a business? Would you like to validate the potential of blockchain to make it more profitable and efficient?

At iCommunity, we know that the key is not to invest to invest in revolutionary systems, but to study in depth the needs of companies, assess the possibilities, and evaluate the return that each innovation will have.

Our solutions provide real benefits, which can boost your company by making it more profitable and competitive.

Tell us about your project and we will advise you without obligation.

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