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Digital Tokens

DigiXHub offers two established methods of implementing digital tokens Utilizing blockchain technology: Colored Coins and Ethereum Tokens to raise funds for your business providing full transparency and eliminating the need for a third party.

Understanding Digital Tokens

Tokens are a representation of a particular asset or utility, that usually resides on top of a blockchain. Tokens can represent basically any assets that are fungible and tradeable, from commodities to loyalty points to even other cryptocurrencies!

Creating tokens is a much easier process as you do not have to modify the codes from a particular protocol or create a blockchain from scratch. All you have to do is follow a standard template on the blockchain – such as on the Ethereum or Waves platform – that allows you to create your own tokens. This functionality of creating your own tokens is made possible through the use of smart contracts; programmable computer codes that are self-executing and do not need any third-parties to operate.

The main difference between altcoins and tokens is in their structure; altcoins are separate currencies with their own separate blockchain while tokens operate on top of a blockchain that facilitates the creation of decentralized applications.

Types of Token

Product Access/Contribution

Perhaps the most obvious feature for a utility token is its ability to access or contribute to its native blockchain’s product or service.

Profit Sharing and Usage Incentives

Some tokens are designed to redistribute the cash flows of the network among users.

Governance

Although it would seem that a token meriting governance or voting rights on a blockchain would be a significant value add for a token, prospective token buyers must be careful in weighing this feature as it relates to token value.

Utility Tokens

Utility tokens represent the right to use of a product or service or cater to a specific function in the ecosystem

Utility tokens are simply app coins or user tokens. They enable future access to the products or services offered by a company. Therefore, utility tokens are not created to be an investment.

Just like an electronics dealer might accept orders for a video game that will be released several months later, a startup can create utility tokens and sell digital coupons for the services or products it is developing.

Utility tokens have a use case and are not designed as investments, but that doesn’t mean that they don’t bring any profit. They have a certain use case inside the project and don’t represent company’s share. Utility tokens may grow in price, if the demand for service or product increases. So buying such tokens of a project, that solves real problems of users and is constantly being developed and improved, may give great profit in future.

It is so because utility tokens ought to have some utility in the decentralized application that a team is building and raising Initial Coin Offering.

Security Token

Security tokens gives their holders ownership rights of an asset

A security token is a digital asset that derives its value from an external asset that can be traded. The purchase of security tokens are seen as an investment because they represent ownership. Therefore, these tokens are subject to laws that govern securities.

On the other hand, security tokens can offer a vast array of applications if the startup abides by all the regulatory requirements. The most promising of these features is the ability to offer tokens as a digital representation of shares of a company’s stock.

Security tokens are a more recent invention in the crypto space. They are considered by many to be the key to cryptocurrencies achieving mainstream adoption, due to their focus on tokenizing digital and non-digital assets, which makes them useful for almost any industry or application.

Legally Compliant Tokens

The tokens issued are embedded with smart contract which has the regulations of the registered jurisdiction coded. These include legal frameworks of fundraising, investor qualification rules & transaction limits on transfer.

Global Investor Participation

Token principles are uniform crosswise over various locales, which implies tokens can be effectively purchased and exchanged by financial specialists around the globe

Reduced Cost & Faster Execution

Security Token Offerings gives quicker execution and dispose of the need of the agents or money related organizations, which subsequently move the duties onto the purchaser or the dealer.

Platforms For Digital Tokens

01.
Colored Coins

Colored Coins – Bitcoin Technology

The term “Colored Coins” loosely describes a class of methods for representing and managing real-world assets on top of the Bitcoin Blockchain. While originally designed to be a currency, Bitcoin’s scripting language allows storing small amounts of metadata on the blockchain, which can be used to represent asset manipulation instructions. There are several applications to colored coin – Issuing shares, Smart property, Coupon, Community Money, Digital collectibles, Access, and Subscription.

Ethereum Tokens - Ethereum Blockchain

Ethereum is not just a network it can be used as a digital currency system, it is also a platform where other applications can be built. One of the most popular use of Ethereum Network is to create tokens that has moved up the technology stack and can now be issued on the application layer as dApp tokens or DAO tokens. Smart contracts on the Ethereum Blockchain enable the creation of tokens with complex behaviors attached to them.

02.
Ethereum Tokens

How Digital Tokens Work

A digital token may seem difficult to understand and sounds complicated but it is valid since they work as a real actual monetary value. You own tokens by way of a key or series of keys that sanction you to access the tokens themselves. The tokens are not stored on your computer or in some authentic, physical space. They are concepts that designate a categorical amount of money, and you can transfer these conceptions of money to other people or businesses in exchange for goods or accommodations.

The historical perception of money was pristinely developed in the form of an IOU, which was a simple slip of paper. You could leave your gold with a goldsmith, who would inscribe the value of the gold onto an IOU sheet. Then, you could take that sheet with you to purchase goods or accommodations. In turn, when someone wanted to turn that piece of paper back into gold, they would simply have to visit the goldsmith and claim it. Digital tokens work in precisely the same way, without the physical movement of a piece of paper. They enable individuals to purchase goods or accommodations in the online world the same way that money enables people to purchase goods in the authentic world.

CHOOSING DIGIXHUB FOR DIGITAL TOKEN DEVELOPMENT

Choosing the right development company makes an enormous difference in your move to Blockchain technology. At DigiXHub we can provide the digital token development services you need to develop secure and real world implementation. We build digital token on both Colored Coins and Ethereum Tokens.

Development process for Digital Tokens

We provide an all-inclusive development support for utilizing blockchain technology, digital tokens revolutionize the way of transferring real-world assets to create practical applications that are scalable and reliable from conceptual token design to community tools development and maintenance of infrastructure.

Requirement Gathering

  • Understanding the requirements for New and Existing Application
  • Identify business logic to be migrated to digital token
  • Roadmap of the product

Team Members

  • Solutions Specialist
  • Technical Lead
  • Business Analyst
  • Blockchain Consultant

Deliverable

  • NDA
  • Proposal with Project Summary Document
  • Presentations
  • Use Cases

Technical Design

  • Digital Token Definition Document
  • Create Data Flow diagrams
  • Design technical Architecture
  • Document technical GDPR compliance requirement
  • Create sprints and delivery milestones

Team Members

  • Business Analyst
  • Solutions Specialist
  • Technical Lead
  • Product Manager
  • Blockchain Architect
  • Developers

Deliverable

  • Flow diagram
  • System blueprint
  • Document scalability and security requirements

Development

  • Alpha
  • Beta
  • Release Candidate
  • Production

Team Members

  • Developers
  • Quality Assurance
  • Team Leads
  • Scrum Master
  • Technical Architect

Deliverable

  • Client Beta Version
  • Admin Beta Version
  • Client and Admin Training
  • Client and Admin Documentation

Deployment

  • Provisioning
  • Deploy on Main Network
     

Team Members

  • DevOps
  • Quality Assurance
  • Delivery Manager
 

Deliverable

  • Main Network Release
  • Rollout execution

Upgrades

  • Requirements gathering
  • Backlog prioritization

Team Members

  • Developers
  • Quality Assurance
  • Team Leads
  • Scrum Master
  • Technical Architect

Deliverable

  • Fixing of bugs on network
  • Upgrades on Token Network

Dedicated Support Team

Not only great theme but we also provide the best support.