Blockchains pay and transact in their own currency, usually referred to as token or cryptoasset, as opposed to using national currencies such as the U.S. dollar. The assets recorded on the blockchain are purely digital and therefore intangible. They can comprise native tokens (e.g. bitcoin, ether), non-native tokens (those underlying other protocols), or intellectual property such as digital art and collectibles.
Tokens on the blockchain can also be linked to tangible or physical assets such as fiat currencies, gold, securities (e.g. stocks, bonds) and real estate. Given the importance of native tokens for blockchain transactions, money and financial applications are blockchains’ first “killer application”.
Photo by Aaron Burden