After the resounding success with the digitization of businesses, worldwide, Tokenization is evidently the next step to attain. This calls for an introduction to Tokenization and the technology it rides on. Blockchain powers major disruptions across most industry verticals. The technology enables the creation of a wide array of novel business concepts. Blockchain also serves as the nerve behind decentralization and trustless networks.
In the sphere of digital currencies, a token refers to any given cryptocurrency token or a token that exists on another cryptocurrency’s blockchain.
“Tokenization is a step beyond digitization, where a crypto token represents an asset or ownership rights to a business,” explains HashCash Chief and blockchain pioneer Raj Chowdhury.
A token is a virtual currency unit, utility, or a unit of value that is issued by a company. Tokens represent programmable assets or access rights which are managed through a smart contract and an underlying distributed ledger.
“Anything of value and growth potential may be tokenized by fragmentation, and digitally representing it through a token.”
Utility tokens are issued as user tokens. These are offered during crowdfunding as a project executes an ICO or an IEO.
“A utility token is designed in the form of a digital coupon to be redeemed at a future opportunity and with offers of a discounted price or special access to merchandise or services,” continued Chowdhury.
A utility token differs from a security token in that the latter is considered as an investment while and comes under regulations from federal governance. A correctly designed utility token, on the other hand, can be exempted from federal laws governing the securities.
“Implementing the utility token may work as a tool to enhance the sales of the product and expand the reach or customer base of the company, pitching it on the global orbit.”
Utility Token and HashCash
Knowing the capabilities of blockchain when layered underneath a well-designed utility token, it is easily extensible for businesses to spread their branches on the global orbit. As visibility is the name of the game, already established by digitization. Tokenization can further the idea by getting interested individuals to virtually become a part of the business from far and wide.
“In the beginning, cryptocurrency was simply a digital bearer of a sum of money. By the turn of a decade, many recognize its potential and structure it in the form of a digital bearer of value tied to a business. The token can be held by supporters across the globe.”
HashCash Consultants, a blockchain development company headed by Chowdhury engages in multiple projects designing digital tokens of value linked to a growing business prospect. HashCash team has architected utility tokens based on diverse business ideas that are currently operational.
“A lot can happen when a business idea is appropriately aligned to a blockchain and is linked to a digital token. What the world sees today is what we have been iterating since the inception of our company,” concluded Chowdhury.