So…What Are Smart Tokens?

What are Tokens?

What is a Smart Token?

  • The asset or origin of value which could be a crypto wallet
  • A set of rules put in place by the issuer of the token that clearly defines who will have access to the token, when they will have access to the token, and under what conditions they should have access. These rules provide the basis for the added feature of transaction authorization that smart contracts have. When these rules are met, then the smart contract authorizes a transaction to occur. An example could be a smart token that provides access to some software. The smart contract allows access when the holder has paid the monthly subscription fee. When this condition is met, the holder can then access their account.
  • A state to track the token value based on the pre-set rules. This state records all the transactions and ensures the value of the token is adjusted to the present value after the transactions.

How Smart Tokens Work

  • Transfer tokens from one wallet to another
  • Vote on a decision
  • Gain access to a product, feature, or space

Types of Smart Tokens

  1. Utility Tokens
  • Real Asset Tokens
  • Equity Tokens
  • Derivative Tokens
  • Debt Tokens
  • Hybrid Convertible Tokens

Advantages of a Smart Token

Conclusion

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
SOLARR

SOLARR

DeFi-Integrated NFT Commerce Platform