3.- WHAT IS A TOKEN?
Last updated
Last updated
In the other video we talk about what an ICO is and we explain that a Utility Token is basically a digital currency that is oriented to offer a concrete utility in a platform or application, which gives rights to the use of certain products or services.
In this video we are going to talk about what is behind utility tokens and what distinguishes it from simple tokens, such as rappicréditos..
To begin with, we have to talk about smart contracts.
A contract as we commonly know them may be subject to interpretation. On the other hand, a smart contract is capable of executing and enforcing itself, autonomously and automatically, without intermediaries or mediators.
Smart contracts are codes written with programming languages. This means that the terms of the contract are pure statements and commands in the code that forms it.
Normally tokens are created on a third-party blockchain network such as Bitcoin, Ethereum or Binance Smart Chain.
Both Ethereum and Binance Smart Chain allow you to create tokens on their network using their own smart contract standards.
These Token Standards exist to provide a model for the creation of tokens on individual blockchains through smart contracts that determine the detailed specifications that cannot be changed from a contract. Thus guaranteeing greater security, interoperability and improvements in the ecosystem.
Let's see it as a format or machote with the minimum standards of a contract.Today the most widely used smart contract standards are BEP20 on the Binance Smart Chain and ERC20 on the Ethereum Network.
*Check the Whitepaper for any questions.