This article categorizes digital assets. In English he often speaks about digital or crypto assets. Bitcoin is a technological breakthrough in computer science and cryptography that has enabled the creation of a new asset class: crypto assets(digital assets).
Bitcoin features the first and best working blockchain on the basis of which assets can be issued. This issuance of assets is called tokenization that can take place on Bitcoin via side chains (RSK, Liquid) and second protocol stacks (Lightning).
This new tech is still under development. Several new blockchain technologies and projects have been launched (such as Ethereum, Polkadot, Cardano, NEO, EOS.io, Solana) each with its own ecosystem and platform for the issuance of digital assets on the blockchain, the blockchain assets. Indeed, the term crypto can be replaced by blockchain. In the most generic sense, they are digital assets. However, there are many digital assets that are not issued on a blockchain platform. We will now categorize the motley landscape of blockchain assets here.
A categorization of the new digital assets or the blockchain assets:
Blockchain assets can be classified into roughly 5 different categories. These are based on the type of protocol, blockchain design and objective that is used. They can be traded on specialized and average Bitcoin and crypto asset exchanges.
Bitcoin is a technological breakthrough similar to the introduction of the number zero during the Middle Ages in Europe. Bitcoin represents absolute digital monetary scarcity thanks to mutually reinforcing network effects. From a monetary perspective Bitcoin is second to none, from a technical standpoint Bitcoin as a cryptocurrency is no longer cutting edgde. For more information: Bitcoin's monetary superiority and the new shitcoins.
Crypto currencies – crypto currencies in the respective blockchains work like digital cash. The design and objective may vary by currency. Bitcoin is the first and most important decentralized cryptocurrency that is used as online cash and primarily serves as a safe store-of-value. Dash is being developed to serve as a payment tool that protects the privacy of its users. Other classic examples of cryptocurrencies are: Litecoin, Vertcoin, Monero, ViaCoin, NavCoin, Groestlcoin, Feathercoin, and so on. They are online means of payment (cryptocash).
Platform Tokens – are used as an internal payment means (such as Ether -ETH) on a decentralized blockchain development platform (such as Ethereum) for gas settlement. Gas is consumed while programming the Dapps or the tokens on a public development platform. The Neo platform also uses these specific platform tokens. Where a Neo Share yields a certain amount of NEO Gas with which can then be programmed. EOS is also a recent good example of a platform token. Many platform tokens that are based on a PoS algorithm can earn an interest or reward via strike.
Utility tokens – are programmed based on smart contracts using the gas platform tokens. They are developed for dapps and specific usage networks. Concrete example: most ERC-20 tokens issued during an ICO work as utility tokens. They are usually issued unregulated without supervision and approval from a financial authority or supervisor.
Equity tokens – with in particular the new digital securities that are often referred to as security tokens or tokenized securities. They are basically a variant of the utility tokens where a claim is made on an asset that may be outside the blockchain and represents a certain asset. This often concerns crypto equity in the form of regulated token shares such as a CDR, but also the more generic dividend coins that can also be traded on security token platforms. Usually, they are legally issued under local laws and regulations under the supervision of a financial regulator. Always look at the exact legality and legal validity. Within certain frameworks, it is possible to tokenize shares and issue them as digital securities on a blockchain.
Stable Tokens – are known by the misleading term stablecoins. It is in fact a variant of equity tokens in which a fixed monetary value is used as collateral (dollars, euros, Philippine pesos, Swiss Francs, precious metal bars, etc.). The stablecoins perform an important function within the crypto trading on the exchanges. You can earn interest on these tokens.
Unique tokens in the form of collectibles. Unique or very limited digital art or collectibles on a blockchain. Concrete example: Crypto Kiddies and Nifties (NFT).