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What Are Crypto Tokens &
How CryptoTokens Work?
INTRODUCTION
• Crypto tokens are a new way to design open networks that arose from the
cryptocurrency movement that began with the introduction of Bitcoin in 2008 and
accelerated with the introduction of Ethereum in 2014.
• Crypto Tokens are created over an Initial Coin Offering (ICO).
• Tokens are in fact a breakthrough in open network design that enables:
o the creation of open, decentralized networks that combine the best architectural
properties of open and proprietary networks, and
o new ways to incentivize open network participants, including users, developers,
investors, and service providers.
• By enabling the development of new open networks, tokens could help reverse the
centralization of the internet, thereby keeping it accessible, vibrant and fair, and
resulting in greater innovation.
Copyright © BlockchainCouncil 2
How do Crypto tokens work?
• Each cryptocurrency token embodies a tradable good. This can be for example coins,
points, certificates, in-game items, etc.
• This means that crypto tokens can be used to represent a share in a company or can
be used as central committee voting rights.
• They are often used to raise funds in a crowdsale. That is why many people refer to
them as cryptocurrency assets or crypto assets and crypto equity.
• The developers of a specific digital token can decide to publish their token on
a cryptocurrency exchange.
• This way users are able to buy and sell the token the initial coin offering has finished.
Copyright © ToshendraSharma 3
Sign Up Now
• Tokens created by the Ethereum Code can get frozen in case something happens – a
hack or a government regulation.
• This means that no cryptocurrency tokens are movable until the unfreezing happens.
Copyright © ToshendraSharma 4
Sign Up Now
Conclusion
• Crypto tokens are currently niche and controversial.
• If present trends continue, they will soon be seen as a breakthrough in the design
and development of open networks.
• This is possible by combining the societal benefits of open protocols with the financial
and architectural benefits of proprietary networks.
• They are also an extremely promising development for those hoping to keep the
internet accessible to entrepreneurs, developers, and other independent creators.
Copyright © ToshendraSharma 5
Sign Up Now
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https://www.blockchain-council.org
training@blockchain-council.org
fb.com/blockchaincouncil
@chaincouncil
WEBSITE:
EMAIL:
THANKYOUFOR YOURTIME
Copyright © BlockchainCouncil 6
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What Are Crypto Tokens & How Crypto Tokens Work?

  • 1. What Are Crypto Tokens & How CryptoTokens Work?
  • 2. INTRODUCTION • Crypto tokens are a new way to design open networks that arose from the cryptocurrency movement that began with the introduction of Bitcoin in 2008 and accelerated with the introduction of Ethereum in 2014. • Crypto Tokens are created over an Initial Coin Offering (ICO). • Tokens are in fact a breakthrough in open network design that enables: o the creation of open, decentralized networks that combine the best architectural properties of open and proprietary networks, and o new ways to incentivize open network participants, including users, developers, investors, and service providers. • By enabling the development of new open networks, tokens could help reverse the centralization of the internet, thereby keeping it accessible, vibrant and fair, and resulting in greater innovation. Copyright © BlockchainCouncil 2
  • 3. How do Crypto tokens work? • Each cryptocurrency token embodies a tradable good. This can be for example coins, points, certificates, in-game items, etc. • This means that crypto tokens can be used to represent a share in a company or can be used as central committee voting rights. • They are often used to raise funds in a crowdsale. That is why many people refer to them as cryptocurrency assets or crypto assets and crypto equity. • The developers of a specific digital token can decide to publish their token on a cryptocurrency exchange. • This way users are able to buy and sell the token the initial coin offering has finished. Copyright © ToshendraSharma 3 Sign Up Now
  • 4. • Tokens created by the Ethereum Code can get frozen in case something happens – a hack or a government regulation. • This means that no cryptocurrency tokens are movable until the unfreezing happens. Copyright © ToshendraSharma 4 Sign Up Now
  • 5. Conclusion • Crypto tokens are currently niche and controversial. • If present trends continue, they will soon be seen as a breakthrough in the design and development of open networks. • This is possible by combining the societal benefits of open protocols with the financial and architectural benefits of proprietary networks. • They are also an extremely promising development for those hoping to keep the internet accessible to entrepreneurs, developers, and other independent creators. Copyright © ToshendraSharma 5 Sign Up Now