[CULTURA DIGITAL] WEB 3.0, Tome 2: The Tokenization of Life

This is a sentence that aims to bring awareness of the Web 3.0 universe and how technology affects the world. / Image: ShubhamDhage / Unsplash


[16.04.2022]


One Alexandre AdoglioCMO at sonica and digital entrepreneur.
Write a few days about Digital Culture to SC Inova

NOTE: Nothing in this article is a capital investment, this content is for educational purposes only and reflects the thoughts of the author. Always do your own research for all types of financial investments.

In March 2021, the digital world was taken over by the disgusting news that the digital artist sold one of his works for less than $ 69 million at Christie’s competition. renowned in New York. Although the volume of money does not vary in the traditional art form, the fact surprised by the move of a NFT (Non-fungible Token)now popularizing this concept for the generation and distribution of digital art, which already exists Moved more than $ 5 billion in the last 18 months.

Tokens are the basis of Web3. They allow us to perform the key tasks provided by smart contracts, providing the necessary capabilities for P2P (Peer-to-Peer) relationships. Tokens have always been unique and can have many uses, from cryptocurrencies and management to NFTs. How to Web 3.0 promises to be user-friendly, unauthorized, transparent and unclutteredChristian paradigms are breaking down with every new application that arises, expands the target audience and changes our sense of belonging.

On the operational side, we can begin to divide Tokens into fungible and non-fungible, especially in data storage. In the industry, a fungible organization is one that can be exchanged for other assets or the value of an equal value. Money is a good example of a valuable asset, for example a $ 10 bill in one person’s bag will retain its value even if it is sent to another bag. Similarly, two $ 10 bills are worth the same as the $ 20 bill.

Non-fungible tokens do not exchange with other tokens of the same type. In other words, every non-fungible token has some substance that prevents you from copying or exchanging identical numbers with identical characters. Non-fungible tokens are special devices that can not be exchanged for other non-fungible tokens of the same type because they have different materials and characteristics. All NFT.

And to clearly distinguish between fungible and non-fungible tokens we can identify important factors such as rotation, distribution, structure and uniqueness.

a) Interchangeability

Fungible Tokens: Tokens that can be exchanged for other tokens of the same type are called fungible tokens. A dollar bill, for example, can be exchanged for another bill, and it does not matter to the carrier.

Non-fungible tokens: Non-fungible tokens are special devices that can not be exchanged for other non-fungible tokens of the same type. They have different materials and characteristics.

b) Classification

Fungible Tokens: Fungible Tokens can be divided into smaller parts. It makes no difference which or how many units you use for as long as they add up for the same price.

Non-fungible tokens: Non-fungible tokens are assets that are not distributed and represent an entire organization that cannot be divided into multiple types. The elementary school has only one token.

c) uniqueness

Fungible tokens: Fungible tokens are the same and have no cost difference, unlike NFTs.

Non-fungible tokens: NFTs have different values ​​and each token has a different ID.

d) Contents

Fungible tokens: Fungible tokens use the ERC20 standard to design fungible tokens on the Ethereum blockchain, allowing the release of tokens such as OMG and TRX.

Non-fungible tokens: Non-fungible tokens use the ERC21 standard, which allows the generation of unique, non-fungible tokens.

SECURITY TOKEN VS. UTILITY TOKEN VS. NFT

Since the invention of Bitcoin, hundreds of new cryptocurrencies and tokens have emerged to serve as digital environments with blockchain ecosystems designed to solve unique problems for people around the world. As with any industry, there are groups that are designed to differentiate between different types of coins.

Cryptocurrencies like Bitcoin, Bitcoin Cash and Litecoin are usually designed to work as coins for everyday transactions. Then we have tokens, which are divided into 2 main categories: Security and Consumption.

“Security Tokens” and “Utility Tokens” represent two groups of tokens that can be obtained through the Initiative Coin Option (ICO), with the planning function being the key difference between them. unlike the security tokensrepresenting fixed assets (e.g. affiliated companies) and designed to be capital assets, the use tokens give their customers future access to products or services.

By ICO of a utility token Start-ups can increase the capital needed to finance the development of its blockchain-based operations as insurers gain future access to services or products copy that will be created. Here it is highlighted that the use tokens prices may increase if the demand for services or products increases. At the same time, hold on security tokens, in turn, receives dividends in the form of additional tokens whenever the company in question makes a profit on the business. unlike the use tokensyou security tokens they do not have to be ‘useful’. They only represent the real interest in the company in question.

“Utility Tokens” is currently the most popular form of tokens. This is due to the wave of blockchain startups that have emerged last year to raise money from startup coins, which want them to create their own tokens and sell them to the public in exchange for ETH. However, these tokens serve a more important purpose than fundraising, because they are electronic and digital devices designed to be used in a unique blockchain environment. For example, Filecoin uses its token to charge users who store data. Civic pays users to identify themselves and create certificates on its blockchain.

Tokens are also used to create special promotional campaigns that allow people to perform special tasks in the environment because they know they will be paid. For example, there are now symbolic models that encourage people to use renewable energy. They can track and publish data for electronic applications using IoT devices and receive tokens based on payments through the blockchain network. Another type of application for electronic devices is Social Tokens, which often allow their owners access to closed communities, with different levels of administration and repayment.

The most widely used virtualization model is the ERC20 Ethereum model, with companies that can build their own integrity applications on the Ethereum blockchain and also release their ICOs (initial coin issuance) using the ERC20 tokens.

Finally, non-fungible tokens (NFTs) alter encryption standards, making each token different and irreplaceable, making it difficult to obtain identical non-fungible tokens. They are digital representations of goods, much like digital passports, with each token having a unique and unchanging symbol that allows it to be recognized by others. They are also extended, which means you can “create” a third special NFT by merging two NFTs.

NFTs have unique members that make it easy to identify and change tokens on keys and can be used to identify members of specific objects. As each NFT represents a different asset, its value varies because owners have the option of adding additional information or assets associated with the asset. Coffee beans, for example, can be represented by a fair trade (fair trade for ESG).

As the world becomes more digital, NFTs provide better solutions for token members, enabling digitization of real assets. As a result, NFTs have been found to be more profitable because they have unique specifications and are non-divisive, making them an indivisible entity. security tokens and use tokens, on the other hand, is easily divisible; Items can be divided into a number of units as long as their value remains constant, and each token can be exchanged for another token of the same type and value.

And in addition to this security provided by NFT, we have other features such as:

A. Authenticity

When buying NFT, you can be sure of its legitimacy because these are created by blockchain and have special rules. That is, each item has a unique number and owner only, to ensure that there is no equality. This is more beneficial than art lovers, in addition to providing a guarantee of originality of the product, it will provide certification for many future products.

B. Material

When you buy something, it is important that everyone involved in the area knows who the owner is. In the case of tangible duplicate or false art, it is difficult for buyers to determine the true owner of the artwork. However, in the case of NFT, the member information can be easily retrieved and the actual owner can be identified.

C. Transferability

As mentioned before, NFT can have the same owner at any time. IDs and credentials, which no other token can generate, are used to manage members, so NFT smart card management not only owns, but also changes exchange of NFT. In addition, a variety of industries make NFTs easy to operate.

D. indivisibility

Another important advantage of NFT is its versatility. An NFT cryptocurrency token is indivisible and unique, which means that one NFT cannot be exchanged for another and all tokens cannot be broken down into smaller ones and used.

Although there are many challenges on the nearest horizon, such as governance, intellectual property and cybersecurity, the tokenization of migration and inability, digital or physical, is characterize by our next step in changing the technology of human beings, giving a small overview of what Web3 will be..0 in the future.

Next: Web 3.0 My Data is mine.

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