What is Token?

Token (Token) is a unit of value issued by an organization in the blockchain system, as well as a digital analogue of shares on a stock exchange. The vast majority of tokens are formed on the Blockchain protocol from Ethereum.

The value of tokens directly depends on their current value in the market, which forms the level of user confidence in the organization that issues them. For example, startups at this stage are not provided with anything other than a progressive idea.

Since blockchain technologies are often used to record them, access to tokens can be obtained using special programs using a digital signature. This approach ensures maximum protection of property rights.

Tokens have the following properties:

• are evidence of a share of shareholder rights in the company;
• act as a currency in a closed system, therefore, they allow you to purchase the services and services of the project;
• can act as a reward for certain services, for example, for finding and helping to attract investors for the organization.

There are different types of tokens on the market:

• equity – used to attract investment and provide the buyer with ownership rights in the project;
• utility – allow you to purchase services and units of services;
• asset-backed – tokens that can be exchanged for real products or services;
• credit – for short-term attraction of financial resources with subsequent repayment of debt and payment of interest on the loan.

Each transaction contains information about all operations performed with the project tokens, in addition, this data is stored not on one central server, but on each member of the network, so it is almost impossible to hack such a database.