Book Image

Blockchain for Decision Makers

By : Romain Tormen
Book Image

Blockchain for Decision Makers

By: Romain Tormen

Overview of this book

In addition to cryptocurrencies, blockchain-based apps are being developed in different industries such as banking, supply chain, and healthcare to achieve digital transformation and enhance user experience. Blockchain is not only about Bitcoin or cryptocurrencies, but also about different technologies such as peer-to-peer networks, consensus mechanisms, and cryptography. These technologies together help sustain trustless environments in which digital value can be transferred between individuals without intermediaries. This book will help you understand the basics of blockchain such as consensus protocols, decentralized applications, and tokenization. You'll focus on how blockchain is used today in different industries and the technological challenges faced while implementing a blockchain strategy. The book also enables you, as a decision maker, to understand blockchain from a technical perspective and evaluate its applicability in your business. Finally, you'll get to grips with blockchain frameworks such as Hyperledger and Quorum and their usability. By the end of this book, you'll have learned about the current use cases of blockchain and be able to implement a blockchain strategy on your own.
Table of Contents (16 chapters)
Title Page

Utility tokens and security tokens

Although most of the tokens issued during an ICO are technically similar, their use can be separated into two categories:

  • Utility tokens
  • Security tokens

When Ethereum launched its sale of Ether, they promised that those tokens would be utilized as a means of payment for using the Ethereum platform to create an application. This underlines that Ether is a token that enables its owner to use the platform, thus the product. In this fashion, Ether is a utility token.

When the DAO launched its sale of the DAO token, they promised that those tokens would be utilized as a voting right for further-financed projects and as a profitable share. The tokens would indeed provide financial returns to the owner resulting from the DAO’s profits. In this fashion, the DAO token was a security token.

The distinction between the two comes from...