A brief summary of Blockchain, cryptocurrency and various token types

  1. What is Blockchain
  2. What is Bitcoin
  3. What is Ethereum and how does it differ from Bitcoin
  4. What is an ICO, how does it differ from a typical IPO
  5. What are tokens, or more specifically utility tokens under the ERC 20 fully fungible standard
  6. What are Asset backed tokens
  7. Security tokens

What is Blockchain

What is Bitcoin?

What is Ethereum?

What is an ICO, how does it differ from a typical IPO

Asset backed tokens

Security tokens

  1. Because these are on the Blockchain they are now suddenly open to typical blockchain investors such as people who have dabbled in Bitcoin. This is a huge global audience and a wider reach means fundraising can be faster.
  2. Securities represented on the Blockchain are implicitly liquid. The way Blockchain works means that 2 parties can trade their positions without needing to go through a central party. Liquidity means lower cost of capital.
  3. Security tokens using smart contracts provide unprecedented transparency as well as real time insight into the into how funds are being deployed giving investors greater participation and protection through better disclosure and reporting.
  4. You can have programmatic actions, where the money can be moved around based on predefined set of rules rather than manual intervention. This opens interesting possibilities on how securities and funds management can happen in future.
  5. Settlements are faster, the trade is the settlement. A number of back office costs are simply eliminated leading to lower operating costs.

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Moresh Kokane

Moresh Kokane

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