We're your best review guide

Tokens as digital analogues of real assets and values

Tokens as digital analogues of real assets and values Johannes Röll Visitors: 373 ★★★★


Tokens as digital analogues of real assets and values


A token is a unit of account representing or expressing the digital value of an asset. Or in other words, it is a substitute for banknotes in the electronic-digital world, expressed in the form of records in databases based on blockchain technologies. To get access to them, it is necessary to install a specialized program that provides reading of electronic signatures.


To speed up and secure the work of real assets and values, their digital counterparts are created - tokens. And the process of representing assets in the form of tokens is called tokenization. It has several advantages:

The trading process does not take much time, because no need to move real existing assets, draw up property documents and attract third parties to carry out transactions.

Security is provided by reliable blockchain technologies that provide verification of system data for accuracy; process and also accept transactions with a large number of independent servers; The auditor checks the entire history of tokenization.

The possibility of expanding and functioning of the platform, improving comfort during use by connecting additional modules and using mobile versions

But, tokenization may have some risks:

  1. Personal user access keys do not have one hundred percent protection: they can be lost or hackers can steal them.
  2. Ensuring confidentiality in public blockchains is difficult because Verification of transactions is possible only with open data.
  3. The database is decentralized, and also has a bandwidth limit, so the scale of tokenization is limited.

The main types of tokens:

Equity tokens (stock tokens) are digital stocks that serve to attract investment, develop and develop company projects. Their owners receive dividends.

Utility tokens (application tokens or "tokens-tokens") - necessary to pay for the services of a project, to gain access to additional resources and modules. They are formed as additional points by performing established actions on the online platform.

Asset-backed tokens (secured tokens) are electronic obligations that can be replaced (exchanged) for items, goods, services.

In the real world, only Asset-backed tokens can be exchanged for material wealth.


You can buy tokens at online trading services, using traditional electronic means of payment, as well as with a personal contract with the seller. For storage, electronic wallets or applications are used that store, process and are able to sign and form transactions.

Those who are familiar with the cryptocurrency industry are often faced with utility tokens. Since the recognition of a token as a security promises problems with the laws of many countries, in particular with the SEC. Therefore, companies, conducting ICOs, distribute tokens to utilities that do not guarantee anything or promise. And investors expect that the product will be in demand, respectively, the demand for the product token will grow, which will cause it to grow in price. That is, there is banal speculation.


Difference between tokens and cryptocurrency:

  1. There is no blockchain.
  2. Tokens can be issued either decentralized or centrally.
  3. Transactions can also be carried out centrally.


Johannes Röll
Johannes Röll

Johannes Röll was born 1978 in Brilon,Germany. Graduated RWTH Aachen University. Over the past ten years he worked as Head of the plastic card team, where he was mainly responsible for the development of the distribution, Head of sales Department and Financial Analyst,where he got experience in planning and support sales figures for branches. For the present he works as freelancer

Comments 0

Recent Projects

Tokens as digital analogues of real assets and values

EUR/USD soars amid rumors of an ECB rate hike by 0.5%

While the EUR/USD pair showed a short-term bearish profile early in the morning as part of a correction after yesterday's testing at 1.0200, it then showed a sudden sharp increase, reaching a maximum at the moment at 1.0250.

Tokens as digital analogues of real assets and values

Oil price in London - Brent

On the electronic platform of the European futures market ICE (Intercontinental Exchange), symbolically located in London, spot transactions are conducted daily, in particular, for Brent oil from the North Sea (spot market) or in the form of forward contracts (futures) for 1000 barrels of Brent oil with a maturity of 3 months, 1 year or 2 years.

Tokens as digital analogues of real assets and values

"Futures" are financial instruments used to predict future changes in the underlying asset

"Futures" are financial instruments used to predict future changes in the underlying asset (stocks, stock index, etc.): You buy or sell a certain amount of this underlying asset at maturity and at a predetermined price. But futures are very risky speculative products.

Tokens as digital analogues of real assets and values

Gh0stly Gh0sts-the first omnichain NFT collection

In recent days, the premiere of the unique collection NFT: gh0stly gh0sts. Although there is little interest in the project at the moment (the Twitter profile @gh0stlygh0sts is watched by less than 12,000 people), it can already be said that this is something groundbreaking.

Tokens as digital analogues of real assets and values

What is a factoring contract and what elements should I pay attention to?

Factoring is a financial service that few people have heard of until recently, but now it is gaining popularity among entrepreneurs every year. This is one of the most effective ways to maintain the financial liquidity of the company and ensure its free access to capital.

Tokens as digital analogues of real assets and values

This article, first of all, will be useful for beginners in the Forex market.

Many newcomers ask such questions: "How to start trading on the Forex currency market, where to do it, the first steps in trading" and other similar questions.