Token: a light boat in the ocean of blockchain value

The blockchain was once hailed as a "credit machine" by The Economist, and what it really solves is the trust problem in the digital world. So how does it solve the trust problem and allow trust to circulate efficiently? The answer is simple, that is Token.

❶ What is Token?

Token, translated as "token" or "pass" in Chinese, is essentially a digital and mobile value carrier, that is, proof of rights and interests.

The civilized development of human society is based on infinite proof of rights and interests. All accounts, ownership, use rights, qualifications, certificates, etc. are proofs of rights and interests. Just like in the real world, we can exchange equivalent vouchers for food, drinks or rides, etc. Similarly, Token is the anchor of various value rights and interests in the blockchain network.

Dr. Lin Le, the founder/chairman of Energy Chain Technology, once made a metaphor: If the blockchain is an ocean of value, Token is a light boat on the ocean, realizing the effective mapping from the physical world to the digital world, allowing all kinds of value information to It can be circulated with low friction and high efficiency.

The AMM protocol Saddle announces the Token economic system: On March 12th, the AMM protocol Saddle published an article to announce the Token economic system. The protocol will integrate a series of incentives in four aspects to maximize the value of Saddle Protocol Token SDL pledgers. [2022/3/12 13:52:05]

In the early stage of development, the rise of cryptocurrency was borrowed from Token, which caused the chaos of #风币满天飞#. These air coins either represent the rights and interests of institutions that have raised funds by publishing white papers, or they reflect some so-called assets that are worthless. The flood of liquidity and the lack of compliance management and control of market supervision, the chaos continued to explode for a while, casting a thick layer of fog on the application prospects of blockchain technology, and using Token as the target of hype, this made a lot of people Large groups of people hate Token's cognitive image.

imToken has reached a cooperation with Debank and will launch the "DeFi asset management" function in the new version: On June 8, the digital currency wallet imToken has reached a cooperation with the one-stop DeFi wallet DeBank to launch "DeFi asset management" in its version 2.9.3 "Asset Management" function provides one-stop DeFi asset information by integrating DeBankOpenAPI. Users can master their own DeFi asset information through the "DeFi Asset Management" function on the homepage of imToken Assets. [2021/6/8 23:22:08]

Today, after a deeper reorganization with production materials and production factors, Token, as a digital value carrier, has great value for the real economy. It covers three basic elements:

① Value formed through the consensus mechanism

Every Token must represent a kind of value. In other words, Token must be a certificate of equity in digital form. It must represent a kind of right, an inherent and intrinsic value, otherwise the necessity of existence will be lost. Only those Tokens that are based on consensus between people and people, people and machines, and machines and machines, and confirmed through algorithms can generate value and be recognized by the blockchain world. Tokens that lose their value will become worthless.

Voice | CEO of HashHub Tokyo: Changes in exchanges can lead to changes in other ecosystems: Recently, Junya Hirano, co-founder and CEO of HashHub Tokyo, said that in the past 2-3 years, Japanese cryptocurrency exchanges have been affected However, in the next few months, with the introduction of measures such as new token listings and IEO regulation, the situation will change. I think the rest of the ecosystem will change with the exchange as well. Beyond that, enterprise blockchains and security tokens will also emerge. ((Global Coin Research))[2019/12/22]

② Credit formed through encrypted digital confirmation

Any proof of equity requires credit endorsement, just as warrants such as equity, bonds, points, and bills in the real world rely on the approval of a centralized organization. In the blockchain world, after the warrant is tokenized, it becomes a string of characters in the digital world, and its credit is confirmed by a powerful encryption algorithm and a consensus mechanism formed by distributed bookkeeping. Technically speaking, blockchain and Token can be completely separated. However, when Token is combined with the blockchain, the authenticity and uniqueness of assets can be determined through encryption algorithms and distributed ledgers, and they can be circulated through consensus algorithms.

Analysis | TokenInsight: Statistics of Top 20 BTC transfer addresses in the past 24 hours: According to TokenInsight data, from 10:00 on August 29, 2018 to 10:00 on August 30, Beijing time, the highest total transfer amount of BTC to a single address was about 12290.97 BTC, By wallet address:

1Kr6QSydW9bFQG1mXiPNNu6WpJGmUa9i1g,

It is the hot wallet address of the Bitfinex exchange, and participated in the initiation of 18 large-value transactions in total. There are multiple transaction receiving addresses. The transaction was caused by the transfer of BTC by the user, and the transferred BTC is now flowing into multiple exchanges.

The total amount of transfers to a single address ranks second, about 7941.1 BTC, initiated by the wallet address: 36S4my1XPT2ct2Xr4Toitona2Z9srSBxf9, initiated a transaction for the user, participated in the initiation of a large transaction, of which about 7681.1 BTC was transferred to the change address of the freshman, and the remaining about 260 BTC were transferred to the hot wallet address and dispersed into the Bitcointalk community wallet address.

The total amount of transfers to a single address ranks third at about 3181.96 BTC,

By wallet address:

Initiated by 1DdWoR6FFdFkshycUgq8fDY3jr8tvD3EW7, this address participated in the initiation of 1 large-amount transaction, which was initiated by a user, in which about 3171.96 BTC were transferred to the freshman’s change address, and the remaining about 10 BTC were transferred to another freshman’s change in 2 times address. [2018/8/30]

③ Through circulation to form quasi-financial attributes

Each Token records the subject's responsibilities and asset ownership, such as identity certificates, education, card coupons, etc., so it can be used as a credit certificate and has a price. On this basis, this certificate can be circulated in the whole chain. For example, in the QQ ecosystem, each Q coin can be used to purchase QQ show, game recharge and other on-platform services. This is similar to the role played by Token in the blockchain ecology. Its property rights, currency attributes, equity attributes, etc. become the financial bearing form in transactions and circulation.

❷ Token-based economic innovation

In essence, the emergence of Token is an innovation of economic laws. Token's redefinition of how value is transferred and managed will fundamentally change the business nature of many industries, such as the standardization of value, the liberalization of circulation, the authenticity of information, the equalization of opportunities, etc...

① Value standardization: Just like the weight and time scale, standardized pricing of digital assets through Token will bring a series of convenience and benefits. For example, we use Token to represent the rights and interests of a certain company or project. First, it can re-price many non-standard assets, and second, Token can circulate more freely. In the past, the shareholding of Token was changed by industry and commerce. This transfer is very troublesome. In addition, the number of people is limited. It is impossible to say that 10,000 people can be shareholders.

② Information authenticity: Because of the traceability and non-tampering characteristics of the blockchain, the asset rights and other information anchored by the Token circulating on the chain become authentic and credible, and based on the application of cryptography, the necessary privacy is protected.

③ Opportunity equalization: First of all, everyone in this ecology has equal opportunities, rather than having established privileged classes. In addition, digital assets are split and anchored through Token, which enables even the smallest investors to purchase a small portion of prosperous assets.

④ Unification of roles: In the blockchain token economic ecology, producers themselves are also users, and users themselves are also shareholders. This triple role is unified. Users can benefit from holding the Token of this ecology.

⑤ Market value visualization: We all know that in the traditional manufacturing era, the reproduction and expansion of enterprises all depend on the reinvestment of profits. In the era of token economy, many good projects also need financing to achieve long-term development. The way of raising funds through Token issuance is aimed at every qualified investor (customer), so as to achieve faster and more efficient financing, and also give good projects more opportunities to realize their own value.

⑥ Behavioral economy: Through a series of Token flows and transactions, the incentives for behaviors and every role in the ecology can be realized, so that the ecology can operate more efficiently. This is also the difference from the traditional economic model, which is slightly inferior in efficiency, effectiveness and fairness.

It is foreseeable that the business scenarios of human society will be transformed into tradable digital assets and values based on Token. The blockchain is more likely to establish key technologies for new protocols for the future token economy and lead a new economic paradigm.

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