Blockchain is hot, tokens are flourishing, and some even start to shout that the era of the Token economy has arrived. Is the Token economy really coming? In our view, it’s too early to tell.

Here’s the thing: a lot of experts talk about tokens, but most of it is metaphysical, ethereal and hard to understand. Only suitable for the taste of insiders, not suitable for the masses to eat melons; Many bigwigs also talk about tokens, but only to satisfy their own selfish interests; Project parties always talk about blockchain and Token, just to reap more benefits; Many people also invest in tokens, but do not understand the real meaning of tokens, and end up being reaped miserably.

What exactly is a Token? What is the value of tokens? What is the meaning of Token? We do not want to use those too academic words to tell you this time, but by giving some small examples in real life, hoping to help too many people eat melon to understand Token more easily.

Many people in the industry argue endlessly about the translation of Token. In fact, whether token, token, or token, this is not much to do with the melon eaters, that is for experts to discuss the problem. We just need to know, whatever it is, right? They’re all one thing, just a name. It’s like naming your dog or cat. However, it is necessary for us to understand what Token means to us.

There are many types of tokens, the more common are tickets, points, contracts, certificates, point cards, securities, rights, qualifications and so on. For example, Q coin, the earliest digital currency we play, can be said to be an early digital currency. Based on Tencent’s credit, it issues a token score and only circulates within Tencent. The price is controlled by Tencent.

Is there any difference between these common tokens in everyday life and the tokens on the blockchain? The core difference is that one is the product of centralization, and the other is the product of decentralization and de-credit. The latter can maximize the currency and circulation properties of the Token.

There are many articles to interpret the value and significance of Token, but most of them are still vague and confusing. It’s not hard to understand tokens. Let’s start with a simple little example.

For example, the owner of a supermarket in our community issued his own Token in order to increase customer bonding and stabilize his business. Community residents can exchange tokens through tokens. In this way, customers can enjoy maximum discounts when shopping with tokens, and can also enjoy convenience services such as free delivery, gift wrapping and receiving express delivery provided by supermarkets.

At this point, the most basic function of the Token has been implemented. But the owner of the supermarket is a smart businessman. He saw the value of Token, so he decided to integrate the business around the community.

So, he found nearby restaurants, beauty shops, hair salons, pedicures, auto repair shops and other store owners, and even found kindergartens, cleaning companies, maintenance companies and other service agencies. They reach a consensus that they will accept customers’ use of tokens and give them more benefits in return.

To solve the problem of mutual trust, supermarket owners put all stores and issued tokens on the blockchain and guarantee them with smart contracts.

It can be said that the value of the Token has been reflected. A Token economy system based on blockchain technology has been formed. In the interior of the community, there will be interaction between individuals and businesses, interaction between businesses, and good interaction between individuals. In this ecosystem, people will be rewarded with tokens for their efforts, and they can also use tokens to solve various problems in life.

In this Token economy, blockchain technology is the guarantee, consensus is the soul, and Token is the source of power.

In the age of blockchain, everyone can issue tokens, which is not wrong in theory, but the size of the value of the key Token.

For example, a family of five, father, mother, sister, brother and sister. Father in order to encourage children love learning, love labor. A Token is issued. Children’s academic performance and labor performance can be expressed through Token. The Token is only for use within the family.

However, if TFBOYS issues a Token based on their fan traffic, it will be of great value. Fans can not only use tokens to participate in TFBOYS fan meetings, concerts, movies and TV dramas… Fans can even earn tokens in return for their efforts. That is to say, in the past, being a fan is pure money. In the Token economy, fans can also earn money. If TFBOYS ‘tokens are listed on the stock exchange, more people will enjoy the return of TFBOYS’ commercial value.

After the blockchain fire, tokens became a tool for many unscrupulous people to make a lot of money.

It starts with the way blockchain projects are launched. Many blockchain projects go like this:

Through the above process, we analyze the current status of tokens in the market, so as to basically judge the authenticity and falseness of blockchain projects.

The first case: pyramid scheme coins. This kind of project pays someone to write a white paper, does not even have a white paper, only uses a PPT to go to the road show to drag the head to cut leek! This kind of program doesn’t even make it to i-C-O. It’s a total scam. They are mainly active in third – and fourth-tier cities, and the majority of participants are older women. Like star coin, five elements coin, mark coin, infinite coin, carat coin, U coin, K coin and so on all belong to this category.

The second case: air currency. It can be said that any project before I-C-O (inclusive) is air money. The vast majority of tokens on the market today fall into this category. From project approval to I-C-O, a large amount of funds were raised. Finally, this money is used in the construction of Token ecology.

However, many project providers do not act after receiving the money. Either take money to run away, or slow ecological construction. In the secondary market to release false news, manufacturing good, repeatedly cut leeks.

The third case: value Token. At present, there are not many truly valuable tokens like BTC and ETH in the market. The ecological construction of Token is a long process. EOS and Qtum, for example, were questioned as air currency when they were just coming out, but their value gradually emerged with the promotion of ecological construction. There are still plenty of skeptics.

The real value of Token must be reflected in the ecology. Otherwise it is as worthless as air. However, it should be reminded that even if there is ecological construction, that only means that the Token has a certain value, as to whether the value is high or low needs to be considered. It’s like there are so many A-share listed companies. Why moutai shares cost hundreds of yuan per share, while some share prices are less than one yuan?

I believe that many people see here, should understand it! The business model of blockchain companies is different from that of traditional companies, and the ecological construction of Token economy is promoted from virtual to real. Entrepreneurs take other people’s money to start a business through ICOs. This is a great test of the humanity of entrepreneurs. And it’s very risky for investors.

In our opinion, the blockchain project’s Token ecological construction “from real to virtual” has a more promising future.

For example, Chen Weixing’s taxi-hailing chain, although the project was touted by Chen, does not change the fact that it is just an air currency at present. If the policy window is opened and Cheng Wei of Didi also sends a “taxi chain”, he can kill Chen Weixing every minute.

The reason is very simple. Chen Weixing’s taxi chain needs to issue tokens to raise funds to start the construction of taxi ecosystem. Cheng Wei has a ready-made ecosystem. As for the technology and mode, it can be done in a short time.

At present, such as Alibaba, Baidu, Tencent, JINGdong, netease, IBM, Microsoft, Oracle and other super large companies have carried out the exploration and application of blockchain, and have achieved good results. But instead of rushing to issue their own tokens, they focused more on their own ecological construction. For them, the issuance of tokens may come naturally.

The ecological construction of Token economy “from virtual to real” is only an exploration, and “from real to virtual” will really start the revolution of blockchain.

(Note: This article is for information only, not investment advice.)

Source: internal reference

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