What are Tokens?
Crypto tokens are a type of cryptocurrency that represent an asset with a specific use on its native platform. Tokens are commonly created on existing blockchains.
What are digital tokens used for?
Tokens are designed with utility in mind, providing access to and use of a larger crypto-economic system. Most tokens exist to be used with decentralised applications, or dApps. Tokens are not designed to act as a store of value in their own right, but rather are designed to function with the software developed alongside. For example, ERC-20 tokens are designed to function on the Ethereum system and blockchain.
What are the most popular crypto tokens?
The most popular tokens are Tether and Binance Coin. These tokens are covered here under the Top 10 Cryptocurrencies on Crypto On-Ramp.
Learn about Exchange Tokens separately here.
The list below covers popular tokens that you should be aware of. Most of these are in the top 50 cryptocurrencies by market cap.
- Chainlink (LINK) is an Ethereum token that powers the Chainlink decentralised oracle network.
- Chainlink is a platform which attempts to bridge the gap between smart contracts on the blockchain and real-world applications, i.e. off the blockchain.
- The LINK cryptocurrency uses ‘oracles’ which find and verify real-world data and bring it ‘on-chain’ to be integrated into smart contracts. This network allows smart contracts on Ethereum to securely connect to external data sources, APIs, and payment systems.
- The Chainlink developers believe that although smart contracts may revolutionise many industries by replacing the need for traditional legal agreements, the underlying consensus protocols related to blockchain technology result in smart contracts being unable to effectively communicate with external systems.
- Through the release of APIs and other platforms, the developers plan to enhance the applicability and usability of smart contracts across the business world.
- HedgeTrade is a platform where the world’s best traders share their knowledge. Traders post predictions into a smart contract-powered Blueprint that users can purchase or unlock in order to access.
- The HedgeTrade platform was designed for amateur traders looking to make the same trades as experts. Those expert traders are incentivised to post high quality, accurate predictions, because if their prediction is correct, they earn proceeds from the users who purchased it. If the prediction is incorrect, the purchasers get a refund.
- HedgeTrade platform and HEDG token lie at the heart of the blockchain-powered system seeking to allow its users to obtain quality market predictions in the world of trading with cryptocurrencies and other assets.
- Launched to revolutionise social trading with the help of blockchain technology, the HedgeTrade platform’s fast rise in 2019 took many in the crypto scene by surprise. The currency is now among the top 50 cryptos, propelled by the promotion of the HedgeTrade decentralised application (dApp).
- The app was specifically designed to provide users with cryptocurrency trading analyses, predictions and, as a bonus, educational content. Its main goal is to serve as the bridge between newbies and experienced traders who are often separated by huge knowledge gaps when it comes to social trading.
- With HedgeTrade, the more experienced users are provided with a platform which allows them to share their knowledge and acquire some HEDG tokens in the process for providing accurate information.
- MKR is an ERC-20 token that is native to the Maker Protocol. MKR is the governance token and recapitalisation source of the Maker Protocol - the smart contracts that power Dai.
- As a governance token, MKR is used by its holders to vote on changes to parameters inside the Maker Protocol, such as stability fees and debt ceilings. Voting is also used to make decisions on non-technical aspects of the protocol, for example asset priority lists, governance processes, role mandates and even electing individuals to fill specific roles.
- The MKR token also acts as a source of recapitalisation when the Maker Protocol runs at a deficit. The possibility of MKR token supply dilution provides holders with a strong incentive to govern the system well. Inversely, the destruction of MKR through the auctioning of Dai from the system’s excess surplus further incentivises holders to govern the system well.
- MakerDAO launched with 1,000,000 MKR tokens at inception. The tokens are created and destroyed under different circumstances. MKR is destroyed when the Maker Protocol’s system surplus exceeds a minimum threshold, resulting in excess Dai being auctioned for MKR that is then destroyed. In contrast, when the Maker Protocol is running a deficit and the system debt exceeds a maximum threshold, MKR is created and auctioned for Dai in order to recapitalise the system.
- Ontology Coin (ONT) is the cryptocurrency that powers Ontology, a high performance blockchain and distributed collaboration platform. Ontology focuses on solving issues related to identity security and data integrity by ensuring data remains accurate and consistent.
- Ontology’s solution allows businesses to leverage blockchain benefits, such as smart contracts and tokenisation, whilst still retaining control of their sensitive data.
- Ontology supports a complete distributed ledger system, including core distributed ledger, smart contract system, cross-chain solution, sharding and security.
- The company behind the Ontology project – Onchain - is the same company behind NEO and Ontology Coin (ONT). ONT originally started out as a NEP-5 token on the NEO blockchain, but was launched in 2018 on the Ontology mainnet.
Basic Attention Token (BAT)
- Basic Attention Token (BAT) is an Ethereum based token which was created alongside its home platform, the Brave Browser. Brave is a fast, open source, privacy-focused browser that blocks unwanted adverts, trackers and contains a ledger system that anonymously captures user attention to reward publishers.
- The Brave browser knows where users spend their time, making it the perfect tool to calculate and reward publishers with BAT. This creates a transparent and efficient blockchain-based digital advertising market. Publishers receive more revenue because middlemen and fraud are reduced. Users opt in to an inclusive and rewarding private ad experience, whilst advertisers get better data on their spending.
- Basic Attention Token can be used to obtain a variety of advertising and attention-based services on the BAT platform, as it is exchanged between publishers, advertisers and users. The token’s utility is founded on user attention, i.e. focus and engagement on an advertisement. Through Brave, BAT will be used to pay content creators and publishers through tips by loyal fans and users will also earn BAT for viewing ads.
- Basic Attention Token is one of very few cryptocurrencies with a legitimate use case and working product. The project aims to improve online advertising by cutting out third party ad exchanges, protecting user privacy, reducing ad fraud and sharing revenue with users to reward them for their attention.
- Augur’s Reputation token (REP) is a token designed for reporting and disputing the outcome of events in online prediction markets. Reporters are rewarded for reporting the outcome of events correctly.
- Successfully crowdfunded in 2015 and launched in 2018, the Augur platform operates as a decentralised prediction market, running on the Ethereum blockchain. REP is used as the source of reward and ‘gas’ for making predictions. Augur has to perform several roles as a decentralised system whereby operation is automated with the use of smart contracts.
- The Augur prediction market protocol is marketed as the only protocol in which its developers do not meddle in its operation beyond providing the initial open source code. In practice, this means that its creators do not create markets, engage in trading or have the ability to control or oversee actions taking place on the Augur platform.
- Augur uses REP to incentivise reporters on its network to back their reports with tokens. REP token holders are entitled to a percentage of the trading fees generated on the platform.
- 0x is a decentralised exchange for trading ERC 20 tokens. 0x is not an application like other coins, but is a protocol - a set of smart contracts.
- Most cryptocurrency exchanges follow the established centralised trading model, whereby the exchange is the gatekeeper providing the infrastructure and acting as connecting agent to clear and facilitate trades between parties. Examples of this model are Coinbase and Binance, who require customers to trust their funds with the exchange. Whilst this centralised model is established for securities markets, the number of hacks at crypto exchanges has dented confidence in cryptocurrency markets. Decentralised trading seeks to address that.
- As a decentralised exchange protocol, 0x allows developers to build their own cryptocurrency exchange and post it online. In a decentralised exchange, smart contracts are the basis for the trading of ERC 20 tokens. 0x is an open protocol that enables the peer-to-peer exchange of assets on the Ethereum blockchain, without high fees or time delays.
- Anyone in the world can use 0x to service a wide variety of markets, ranging from gaming items to financial instruments.
- Thank you for reading to the bottom of the page! Now here is the bolter in the pack – XYO. I’m also going to share an opportunity with you in regard to this new but increasingly popular cryptocurrency. Read on…
- XYO is an ERC20 token, based on the Ethereum blockchain, which runs on the XY Oracle Network.
- XYO operates a decentralised network of devices that anonymously collect and validate geospatial data, i.e. data with a geographic component. At the centre of the system sits an exciting new cryptocurrency that incentivises the ecosystem - the XYO Token.
- The XYO Network is a trustless cryptographic location network that enables layered location verification across many devices and protocols - a chain that confirms a location through the collection, confirmation and storage of bound witness interactions. This chain is used to answer questions related to location data certainty.
- XYO uses a Proof of Origin consensus mechanism as the key to verifying and validating the ledgers that contain location data flowing into the XYO Network.
- XYO is particularly exciting as it can be mined on a smartphone, via the COIN app, enabling users to earn free cryptocurrency. With the COIN App, you can geomine as you go about your day and earn COIN Tokens in exchange for providing location-based data to the XYO Network. These digital assets can then be exchanged for XYO once a minimum amount is reached. XYO is traded on a number of crypto exchanges, including KuCoin. Start mining and collecting free XYO crypto here.