Token Economy

An economy of goods and services that can run without intermediaries and third parties with the help of the blockchain technology.

Token economies refer to the economics of goods and services that have been tokenized. Blockchain technology enables these economies to function without the need for intermediaries and third parties. Blockchain and token economies offer a solution to bridge the physical and digital gap between our increasingly global and virtual worlds.

In a token economy, blockchain technology is used to take physical assets, digitize them, prove their ownership, and potentially trade them. The same principles apply to tokenizing an asset that is already in digital form.

The four tools you need to work with tokens, sometimes called digital assets, are Documentation, Tokenization, Governance, and Trading.

Token economies are essentially a digital analogy to the interaction of parties and entities in the real world, based on quantifiable units (tokens), governed by mathematics, and secured by cryptography.

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