Tokens in Blockchain Technology
A common issue that most people face these days is how to record assets such as cars, real estate, or even cryptocurrencies. To solve this issue, a token has been created with ERC-20 standard. There are many different types of tokens like cryptocurrency tokens(Bitcoin, Ethereum), loyalty points(Starbucks), and digital tickets for concerts.https://cryptocirclex.com/
Blockchain can be used for tracking the ownership of these assets easily. The main concept behind blockchain technology is to have a decentralized system using a distributed ledger that records all transactions across an entire network of computers on it without the need for token systems.
The Non-fungible Tokens are not fungible in nature while they can be interchangeable with other non-fungible tokens. For example, a baseball card that can be used by one baseball team and the other baseball team cannot use the same cards while they are not interchangeable.
ERC-721 Non-fungible Tokens: The ERC-721 standard was launched by ERC20 in 2015 for non fungible tokens. This standard allows for each token to be its own independent identity and to be attached directly to specific assets like real estate deeds, shares of stock, etc. For example, Apple can create an app on iPhone which holds a token which represents an apple tree through it’s ERC-20 token that any user can freely exchange with others from the Ethereum network.
Non-fungible Tokens of Ethereum :
1. CryptoKitties.
CryptoKitties is a decentralized platform that uses Blockchain technology to allow users to collect, breed and trade virtual cats. CryptoKitties are usually represented by a string of 12 characters, each representing one ‘attribute’ of the cat (eg. characteristics like fur color, eye shape and color, tail style and color, etc.).
2. CryptoPunks Tokens.
CryptoPunks is a decentralized platform that uses Blockchain technology to allow users to collect and trade tokens representing punk music bands, IT companies and others. The crypto punk tokens are represented in the form of a character string with 12-characters for each of these attributes.
3. Etheremon.
Etheremon is a decentralized platform that uses Blockchain technology to allow players to collect and breed more than 15,000 creatures called ‘Etheremon’. These creatures are represented by a string of 12 characters each representing one general characteristic or ability of the ‘Etheremon’.
Each character can be modified with additional attributes, as well as its own name and species (eg. dragon, ninja cat). The ERC-20 token of Etheremon can be used to buy virtual items on CryptoKitties store, traded on Cryptopunks Store, exchanged on Ethereum DEX platform or used as a currency on Etheremon platform to buy virtual items.
4. Potions.
Potions is a decentralized platform that allows players to collect and earn potions (items with special abilities). The ERC-20 token of Potions can be used to buy virtual items on CryptoKitties store, traded on Cryptopunks Store, exchanged on Ethereum DEX platform or used as a currency on Potions platform to buy virtual items. There are over 9,000 potions in the Potions game that are represented by a string of 100 characters in total.
5. Decentraland.
Decentraland is an open-source real-time 3D interactive Virtual Reality world powered by the Ethereum Blockchain. You can own land, custom assets, buildings and items here.
6. Enjin Coin.
Enjin Coin is the first cryptocurrency token that provides platform users with the ability to create, share and interact within an online gaming ecosystem that focuses on virtual goods, game assets, and user-generated content. The ERC-20 token of Enjin Coin can be used for creating virtual currency wallets on Ethereum DEX platform or exchanged for other cryptocurrencies.
The main concept behind blockchain technology is to have a decentralized system using a distributed ledger that records all transactions across an entire network of computers on it without the need for token systems.
The tokens are like shares of a company which represent something physical such as cars or houses in case of CryptoKitties or music bands in case of Cryptopunks. These tokens can be traded for other cryptocurrencies and some of the cryptocurrencies are also attached with a certain functionality. For example, Decentraland tokens can be used to buy land in Decentraland.
The use of blockchain technology has made it easier for people to keep track of ownership of goods. It is also helping people to conduct transactions online that used to be difficult before. There are many other applications of blockchain technology that we may not think about. In the next few years, we can see a large number of tokens being used in different ways in various industries or other uses as well.
