An understanding of Ethereum Token
Ethereum was launched in 2014 by a band of coders. It was designed with a basic concept that anyone can easily code any type of app along with deploying it on blockchain. As far as ethereum token is concerned, then they are digital assets that is built on ethereum blockchain. So in short ethereum is a platform that is probably used to create smart contracts that will represent digital assets called ethereum token. So today this article will give you a basic clarity about what ethereum token is.
Ethereum tokens can be a representation of any physical object be it a gold or a native currency probably used to pay a transaction fee. Also in near future these tokens will be used to represent financial instruments such as stocks and bonds.
As far as the working of ethereum token is concerned, it is a set of code with a database. Here the code basically describes the behaviour of token and the database consisting of rows and columns will be used to track the number of people and the number of tokens they own.
The two most important ethereum tokens are Augur’s REP and Golem’s GNT. Both are in the development stage and has the combined market cap of nearly $450 million.
Argur is basically a decentralized prediction market that issued an ethereum token called as Reputation(REP). Now these tokens are mostly used for reporting probably on the outcome of prediction market events.
Golem is a project that helps people by allowing them to rent out their spare computing power to others. It issued an ethereum token called Golem Network Token and the currency is used for payment when renting the computing power.
Thus the future of ethereum token seems to be successful as in the past one year a number of tokens have come out and has shown no sign of stopping. A token can definitely be anything be it currency or real-world assets. With the passing time, it is evolving out to be more and more versatile.