Each virtual currency generally has its own blockchain. For example, well-known virtual currencies such as BTC and ETH have their own blockchains. The blockchain database acts as a transaction record for its virtual currency, and virtual currencies primarily have a 1-to-1 relationship with their blockchains.
This means that a token is a newly created virtual currency on a blockchain. Tokens serve many purposes, but are basically issued and administered by individuals or organizations for the sake of improving convenience.
Features of tokens
Tokens have three main features.
・There is an issuer or administrator
The main difference between a token and a virtual currency is the existence of issuers or administrators. Virtual currencies that are not tokens are issued by a system and do not have a central administrator. However, tokens are issued and administered by individuals, groups, or companies.
Once a token is issued, the amount issued can not be changed.
・Can be issued by an individual or company
Tokens can generally be issued by an individual, group, or company. While stocks require securities companies or other mediators, tokens can generally be issued without a mediator.
・Creates a unique value
In addition to use as a currency, tokens can have additional value. For example, issuers can use the tokens as payments for their services or to obtain voting rights.
*We are required by the authorities to make this disclaimer about fundraising through token issuance. bitFlyer does not make any endorsements or guarantees for any specific token or ICO.