The common conception the person in the street seems to have of crypto is that it begins and ends with some kind of digital cash. A new way of paying for things online.

While that’s partially correct, it’s nowhere near the whole story of a technology and a market that’s getting bigger and more relevant all the time.

Cryptocurrency

Although this is the most recognised use of crypto technology, it’s actually a by-product of the initial aims. To facilitate the peer-to-peer transacting that blockchain allowed for, forming currencies became necessary to provide the full functionality.

A currency does exactly what you’d expect — you can buy and trade for things, building your coin balance by converting real world currencies on an exchange, accepting them as payment, or mining new ones.

Platforms

If cryptocurrency functions like your routine daily banking (used in place of debit cards and deposited in one simple account), then crypto platforms are more like the equivalent of investment banking.

On platforms such as Ethereum, users can build DApps like MEDIA Protocol’s CryptoCatnip, and smart contracts. Transactions here are not conducted with coins and monetary value, but rather with tokens. The apps are used to collect these and then they can be spent within the platform’s ecosystem to access exclusive content, get behind paywalls and other functions.

MEDIA tokens (MPT) are ERC20 tokens, exchanged for services and access across the Ethereum network. MEDIA Protocol-enabled platforms will allow users to gain these tokens as rewards in a variety of ways.

Utility Tokens

These are predominantly a way of acquiring or getting access to blockchain-specific product or service. In the case of tokens such as Golem or SiaCoin, users ‘buy’ storage space or computing power. MPT can be used to gain access to paywalled or exclusive content. Essentially, utility tokens power the project’s particular ecosystem, much in the same way Disney Dollars can be redeemed in exchange for goods or services at Disney resorts and outlets.

It’s important to note, however, that utility tokens are not designed as investments. This doesn’t stop people from speculating though. Many contribute to utility token ICOs in the hope that the value of the tokens will increase in line with demand for the company’s product or service.

Security Tokens

One part of the financial world that seems destined for the blockchain is securities. Tradable assets, the equities and derivatives markets could add trillions in value with even a fraction of their trading activity.

This is already being trialled by some of the biggest traders.

Once a project has met all the relevant financial regulatory obligations, the ability to issue tokens that represent shares of company stock becomes a very appealing prospective investment.

Natural Asset Tokens

These are backed by physical resources, like gold or diamonds. There’s also room for innovation here. For example, CarbonX tokens are backed by purchased carbon offsets, then used to reward customers for eco-friendly decisions and purchases.

Collectibles

At the other end of the spectrum we have the gamification of crypto. Its very own take on phenomena like Pokémon Go. Decentraland defines crypto-collectibles best:

A crypto-collectible is a cryptographically unique, non-fungible digital asset. Unlike cryptocurrencies, which require all tokens to be identical, each crypto-collectible token is unique or limited in quantity.

Typically, crypto-collectibles are visualized as real-life objects such as pets or avatars. Each token has variations in specific attributes and there are limits to the number of tokens that can be generated. Often, additional logic in the form of Ethereum smart contracts enables interaction between tokens such as breeding new unique tokens.

In short: CryptoKitties are available for purchase, with rarities and blending opportunities available as collections grow.

Crypto-Fiat and Stablecoins

These are a form of value regulation, often backed by governments with real-world assets, tying currencies into a fixed range of worth. For example, Tether (USDT) maintains a value equal to $1USD.

Stablecoins can be used to launch new trading resources and methods, as already trialled in countries like Venezuela.

Ultimately, Stablecoins eliminate volatility in a space that is, to-date, highly volatile.

Crypto: In Summary

More and more of the services and applications that were just theorised are now becoming reality with blockchain technology. It seems just a matter of time before more companies and markets make the jump, like securities trading.

From a simple initial goal, crypto is already much more than just a form of digital cash, and its applications and reach continue to grow by the day.

For more information regarding MEDIA Protocol find us on our social channels below:

Website: www.mediaprotocol.org

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LinkedIn: https://www.linkedin.com/company/media-protocol/

Telegram: https://t.me/Media_Protocol_Community and https://t.me/MP_Announcements

Medium: https://medium.com/@mediaprotocolsm

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