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Blockchain for Decision Makers
book

Blockchain for Decision Makers

by Romain Tormen
September 2019
Beginner to intermediate content levelBeginner to intermediate
184 pages
4h 56m
English
Packt Publishing
Content preview from Blockchain for Decision Makers

Utility tokens and security tokens

Although most of the tokens issued during an ICO are technically similar, their use can be separated into two categories:

  • Utility tokens
  • Security tokens

When Ethereum launched its sale of Ether, they promised that those tokens would be utilized as a means of payment for using the Ethereum platform to create an application. This underlines that Ether is a token that enables its owner to use the platform, thus the product. In this fashion, Ether is a utility token.

When the DAO launched its sale of the DAO token, they promised that those tokens would be utilized as a voting right for further-financed projects and as a profitable share. The tokens would indeed provide financial returns to the owner resulting ...

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Publisher Resources

ISBN: 9781838552275Other