Cryptotokens: More than just digital gold and gambling

In the exciting world of cryptocurrencies, everything often revolves around Bitcoin, Ethereum, memecoins and Co. as digital stores of value or speculative investments. But behind the hype and wild price fluctuations hides a wide range of applications that have the potential to revolutionize entire industries. Let's take a look at what crypto tokens are really good for beyond "HODL" and "To the Moon!".

Applications of crypto tokens

Applications of crypto tokens beyond store of value

Click on the individual use cases to find out what crypto tokens can do besides store of value:

Asset tokenization: When the Picasso is attached to the blockchain

Tokenization Participation MV

Buying shares in a valuable painting, a luxury property or an iconic motor vehicle is as easy as stocks and ETFs? This is exactly what asset tokenization enables. In this process, real values are converted into digital tokens and mapped on a blockchain. This makes illiquid assets such as art or real estate accessible to retail investors and creates new opportunities for portfolio diversification.

Practical example: The Masterworks platform allows investors to invest in tokenized shares of famous works of art. Theoretically, you can become a co-owner of a real Picasso for as little as 20 dollars. Whether it will also hang in your living room is another question, but integration into your metaverse domicile is easily possible, including proof of authenticity and partial ownership, e.g. with Ravespace.

Non-Fungible Tokens (NFTs): Digital monkey pictures and more

NFT Collect Community

NFTs have taken the art world by storm, creating new opportunities for digital ownership. These unique tokens represent ownership of digital or physical goods and open up exciting applications far beyond pixelated punks and bored apes in art and community building. For digital artists, it is the only way to really sell their artworks.

Practical examples: The NBA Top Shot platform sells NFTs of highlight clips from NBA games. Fans can purchase and trade digital trading cards - a modern version of the Panini album.

Since 2007, the artist Beeple has been creating a new digital work of art on current affairs every day and selling some of it as NFTs at incredible prices.

The community of the "monkey pictures", the Bored Ape Yacht Club, meets worldwide annually for an Apefest, lasting several days, operates its own crypto network with the Apechain, its own metaverse with Otherworld and bundles a number of different trades of the members under the umbrella brand "Made by Apes".

Decentralized finance systems: bankless banking

DeFi Unbank Community

Imagine a world where you can borrow, earn interest, and take out insurance without the need for banks or other intermediaries. Welcome to the world of decentralized finance (DeFi). Here, smart contracts on the blockchain are taking on the role of traditional financial institutions.

Practical example: On platforms like MagicSea and SushiSwap, you can exchange cryptocurrencies, lend them and collect interest on them, or take out loans yourself. What makes it special is that everything is automated via smart contracts, liquidity pools and automated market makers, without the involvement of a central authority.

Governance tokens: Democracy on the blockchain

Tokenization Community Participation

Who doesn't dream of having a say in important decisions made by large companies? With governance tokens, this dream is becoming a reality - at least in the crypto world. These special tokens give their owners voting rights in decentralized autonomous organizations (DAOs).

Practical example: The Uniswap token ($UNI) allows holders to vote on changes to the Uniswap protocol, one of the largest decentralized crypto exchanges. This means that small investors also have a voice in the further development of the platform.

Supply Chain Management: From the field to the plate

Tokenization Sustainability Transparency

Crypto tokens can also help make supply chains more transparent and efficient. By using blockchain technology, the path of a product from origin to the end consumer can be traced seamlessly.

Practical example: The startup TLIP uses blockchain technology not only to verify the origin and authenticity of products, but also to keep all necessary export documents digitally on chain accessible in real time. This not only allows consumers to track the journey of their tulips from the gardener in Kenya to distribution in Amsterdam to the flower vase, but they are also fresher thanks to more efficient customs clearances.

Identity Management: My Digital Self

Tokenization SSI

In an increasingly digital world, the secure management of our online identities is becoming increasingly important. Blockchain-based identity solutions promise more control over one's own personal data and better protection against identity theft.

Practical example: The W3C's DID architecture allows users to securely verify their identity and selectively share information with third parties without having to disclose sensitive data. It is to be used, for example, in the EU's EBSI project.

AuditOne: Security for Smart Contracts and More

A particularly exciting example of the practical application of crypto tokens is AuditOne. This innovative project aims to improve the security of smart contracts – a critical aspect in the world of decentralized applications.

AuditOne uses its own token to incentivize a decentralized network of security experts. These experts review smart contracts for vulnerabilities and potential security risks. Project developers can purchase AuditOne tokens to commission audits for their smart contracts.

The special thing about AuditOne's tokenomics is that some of the tokens are locked in a so-called "security pool". This pool serves as insurance in case security gaps should have been overlooked despite the audit. This gives users additional protection.

AuditOne leverages its own token $AUDIT to create a diverse ecosystem that benefits all stakeholders:

For clients

Discounted audits: Projects can purchase $AUDIT tokens to commission smart contract audits on more favorable terms.
Prioritization: Token holders may enjoy faster turnaround times for their audit requests.
Additional services: With $AUDIT, clients can gain access to advanced security analysis or consulting services.

For auditors

Performance-based remuneration: Auditors are compensated in $AUDIT for their work, although remuneration may be linked to the quality and scope of their audits.
Reputation: Successful audits increase Auditor’s reputation in the network, which can lead to more orders.
Staking opportunities: Auditors can stake their earned tokens to generate additional rewards.

For the community

Governance: $AUDIT holders can participate in votes on the future of the protocol.
Bug Bounties: Community members can be rewarded with $AUDIT for disclosing vulnerabilities in audited contracts.
Educational resources: Access to exclusive training and webinars on smart contract security..

For employees

Performance incentives: Parts of the compensation can be paid in $AUDIT, which allows employees to participate in the long-term success of the project.
Vesting programs: Long-term commitment through token-based vesting plans.

Additional benefits and integrations

Discounted services at CoinIntel: $AUDIT holders receive exclusive discounts on the use of the AI-powered crypto analysis platform CoinIntel (https://www.coinintel.xyz/). This allows them to make informed investment decisions in the crypto market.
Liquidity and trading: The $AUDIT token can be freely traded on decentralized exchanges such as MagicSea (https://app.magicsea.finance/). This increases liquidity and allows holders to easily enter or exit the token.
Yield Farming and Staking: On MagicSea, $AUDIT holders can contribute or stake their tokens to liquidity pools for additional returns. This promotes long-term loyalty to the AuditOne ecosystem.
Cross-platform utility: Integration with other platforms such as CoinIntel and MagicSea creates a broader ecosystem where the $AUDIT token adds value.

With these diverse applications and benefits, AuditOne is creating a holistic ecosystem with its $AUDIT token that goes far beyond the mere security verification of smart contracts. It incentivizes all stakeholders to contribute to the growth and security of the network, while providing attractive usage opportunities and potential returns.

Use Cases, that particularly benefit from crypto tokens

Some areas in particular benefit from the use of crypto tokens:

Cross-border payments: Fast and cost-effective international transfers without intermediaries.
Microtransactions: Enabling very small amounts, e.g. for pay-per-use models in theInternet of Things.
Crowdfunding:Direct funding of projects by a global community.
Gaming:In-game currencies and tradable virtual assets.
Energy trading: Peer-to-peer trading of surplus solar power in microgrids.
Digital rights: management and trade of copyrights for music, films, etc..

Tokenomics

Tokenomics play a crucial role in the evaluation of a crypto project, as they define the economic foundations and incentive mechanisms of the underlying token system. They include aspects such as the total supply, distribution mechanisms, inflation or deflation rates, and the uses of the token within the ecosystem. A well-thought-out tokenomics model can significantly influence the sustainability and long-term value of a project by incentivizing users, investors, and developers to contribute to the growth and stability of the network. When evaluating the project, investors should carefully analyze tokenomics to identify potential risks such as excessive inflation or unequal token distribution and assess the project's growth prospects. A balanced and transparent tokenomics model can be an indicator of a serious and future-proof project, while poorly designed tokenomics often indicate short-term profit intentions or a lack of sustainability.

Praktisches Beispiel: Tokenomics of AuditOne

Select parts of the doughnut to see the share, purpose, and details.

AuditOne Tokenomics Donut Chart

‍

Conclusion: The token revolution has only just begun

Crypto tokens are much more than just digital speculative objects or stores of value. They have the potential to transform entire industries and enable new forms of collaboration and business. From democratizing investment to revolutionizing finance to improving supply chains, the applications are diverse and fascinating. Of course, we are still at the beginning of this development. Regulatory uncertainties, technical challenges and the necessary broad acceptance are hurdles that need to be overcome. But one thing is clear: the token revolution has only just begun. Who knows, maybe we'll soon pay for our coffee with NFTs, vote on the future of our favorite brands via governance tokens, or let the blockchain manage our digital identity. With this in mind: Stay curious, inform yourself and be part of this exciting development. But don't forget: Even though crypto tokens can do much more than just rise (or fall) in value, remain cautious about all investments. Because at the end of the day, DYOR (Do Your Own Research) and only invest what you can lose painlessly. Happy Tokening!

‍

Crypto Tokens