The jargon surrounding any new technology can be hard to understand sometimes. In the case of blockchain technology, a key piece of information to understand is the importance of tokens and tokenisation. What is a token? A token is simply a digital coupon that can either be used as a token of payment inside the ecosystem of the application or can be treated as a security token, i.e the value is secured against an asset and is intended to increase over time. The purpose of a token is to allow an organisation or startup to sell them to raise capital for their project.
Simple right? Well to be honest, it is. We actually already use very similar systems almost daily. Think about a postage stamp for example, we pay in FIAT currency for a stamp and that stamp is then redeemable for a specified service – postage.
This is just the tip of the iceberg when it comes to the world of tokenomics and rather than me try to delve in and explain everything to you – we decided that our good friend David Siegel of the Pillar Project, 20|30 and Pull News would be the best man for the job! David is a published author, CEO of several successful startups and a tokenisation expert and advocate.