• eur/usd 1.1862

    0.18

    BTC/usd 15.674.99

    8.60

    ETH/usd 674.99

    13.60

  • eur/usd 1.1862

    0.18

    BTC/usd 15.674.99

    8.60

    ETH/usd 674.99

    13.60

  • eur/usd 1.1862

    3.95

    BTC/usd 15.674.99

    4.78

    ETH/usd 674.99

    11.37

Utility Tokens, Definition and Roles

UTILITY TOKENS

Definition: These are blockchain based tokens, with functionality baked in their core used for various purposes bought with the intention to use something in the future. They give users access to a future product or service. Typically a company initiates an ICO Offering of their digital service or product. Investors who investors in ICOs can use them as a means of payment on the platform developed by the issuing company.

They facilitate access tp participation and development of a blockchain, distributed ledger and other data structures raising capital for the development of the network.

For example a gaming company can issue tokens that can be used for ingame purchases which enables the company to raise capital. The gaming token cannot be used for anything else. To use the gaming token for anything else one has to have to exchange it against either fiat money or crypto-coin such as bitcoin. A utility token can do many different things and has many different applications.

Examples

  1. BAT: Was launched inorder to create a blockchain platform that helpsĀ  content creators andd publishers.
  2. Golem (GNT)- Creates an economic system for individuals to rent the computing power available to them.

Utility token roles

  1. Give rights to owners to use the product.
  2. Boost user experience by rewarding users after accomplishing certain task
  3. Used for payments inside or outside the blockchain
  4. Shared and distributed earning.

Top List of Utility Tokens

  1. Monero
  2. Polkadot
  3. Filecoin
  4. Binance coin
  5. EOS
  6. VeChain
  7. Cardono
  8. Aavee

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