- Currency tokens released by a company sometimes ceased to be mere “trade” tokens when they were sanctioned by a local government authority: perhaps due to a severe shortage of money to issue its own coinage. Actually, the organization behind the tokens became the regional bank.
- The best example of this is the Strachan and Co trade tokens of East Gragualand in South Africa, which were used as currency by the indigenous people in the region from 1874. Their starting success resulted from the scarcity of small change in that remote region at that time.
- Same as in times of high inflation, tokens have sometimes taken on a currency role. Examples of this are Italian and Israeli telephone tokens, which were always good for the same service (i.e. one phone call) even as prices increased. New York City Subway tokens were also sometimes accepted in trade, or even in parking meters since they had a set value.
- Ethereum Tokens are commonly wont to ask for privately issued special-purpose coins.
- Similarly items of insignificant intrinsic value. i.e Transportation, food courts, and game tokens.
- These days, “Tokens” administered on blockchains are redefining the word to mean blockchain-based abstractions which will be owned which represent.
- Currency or
- Access rights
Traditional Tokens Vs Blockchain Tokens
Restricted to specific businesses, organizations, or locations.
Physical tokens aren’t easily exchangeable and typically have just one function.
These restrictions are lifted.
There are many blockchain tokens that serve multiple purposes globally and are often traded for every other/for other currencies.
How are Token Used?
The most blatant user for Token is as digital private currencies.
this is often just one possible use. Currency is simply the primary application.
Tokens are often programmed to serve many various functions.
What are often those different Functions?
Currency: function a sort of currency, with a worth determined through private trade.
Resource: Earned or produced during a sharing economy or resource-sharing environment i.e; a storage or CPU token representing resources that will be shared over a network.
Asset: Access rights and grant access to a digital or property,i.e.discussion forum, an exclusive website, a bedroom, or a rental car.
Equity: Shareholder equity during a digital organization(e.f; a DAO) or legal entity(e.g;a corporation)
Voting: Voting rights during a digital or system.
Collectible: Digital/physical collectible
Identity: The Digital identity(e.g avatar) or legal identity(e.g national ID)
Attestation: The Certification or attestation of fact by some authority or by a decentralized reputation system(e.g; marriage record, certificate, college degree).
Utility: Access or buy a service.