A change came rapidly when in the crypto space many currencies came with the hand of ICO after Bitcoin. People started paying much more attention to blockchain technology. Several taxonomies have already been developed like exchange tokens, utility tokens, payment tokens, asset-backed-tokens etc. But things have been changed the crypto space has split into three different spaces. Three spaces are-
Trading tokens are referred to cryptocurrences. Verily to say that, the word ‘’currency’’ was never really compatible with the technology. Token is a set of information which is optimized for transfer between computers. The information can also be sold if it has intrinsic value. Some also take it as valueless. However ICO came to the stage. Depending upon blockchain or generally similar protocol consensus algorithm, it is fixed that whether crypto token will be traded externally. At the end, these methods all record tokens’ existence, movements and changes. There are dependency on DLT technology. Maximum DLT investments must be made in seed/VC/PE form. DLT/blockchain space is disengaged from the trading token space. It’s the second prong of crypto ‘’trichotomy’’.
Now come to asset-backed tokens.
Tokenization is basically another type of securitization which has no inborn relationship to ‘crypto’ in essence. One could have tokenized possession in the design whenever in the past and done as such without the blockchain. The requirements were not legitimate. DLT unquestionably makes it easier and progressively practical.
Interesting part: scale:
The total trading token space reached about 80% of that level. Hopefully it will reach it in 2020. The blockchain, nonetheless, appears to be bound to effectively achieve twofold digit trillions in esteem. On the off chance that one basically takes a gander at the estimation of logistics chains being put on the blockchain, one achieves well over portion of that esteem. Adding money related exchanges to the blend blows through 11 digits effectively. Triple-digit trillions might be conceivable be that as it may, again, no time soon, if at any time.
Asset-backed tokens which, as you may review, used to be a solitary, rather orphaned classification of cryptocurrencies-may really finish up being the vast of the three branches, effectively achieving triple-digit trillions. Real estate alone, a lot of which is by all accounts bound for the blockchain, hits that esteem. The one potential blemish in the investigation is the potential for twofold checking between the second and third classifications. Title to land will more likely than not be recorded on the blockchain. A lot of it might likewise be tokenized. In the event that we tally the estimation of land in the two classifications, the second will, perforce, surpass the first.