Find out the relationship between blockchains, tokens, and ICO

The concept of the three

1. Blockchains : Essentially a decentralized database, a string of cryptographic methods used to generate associated data blocks. Each block contains information for the entire network for a period of time. To verify the validity of its information and generate the next block, in a nutshell, the blockchain can be called a universal bookkeeping technology.
2. Token : It is a digital value carrier, a digitization of assets, and a kind of equity certificate. As an anonymous asset is embedded in the network, it can be freely traded and circulated without the need of the asset issuer's authorization.

3.ICO : short for Intial Coin Offering. It is a unique financing method for early digital projects. The digital cryptocurrency that returns to investors mostly uses Bitcoin and Ethereum as the two digital currencies for financing. The project valuation is different.

The relationship between the three

As a kind of application technology, blockchain has the value of being capable of being continuously circulated and traded on the Internet, and the value of tokens as a kind of virtual assets is to be converted into a real economy. achieve. Blockchains need tokens to reflect their application value, tokens need to be circulated on the blockchain, and they complement each other and promote each other.

The platform through the ICO, to achieve the physical conversion of tokens, on the one hand through financing, raise funds for the start-up and development of the platform; on the other hand, in the blockchain to create a value intermediary for asset transactions, to achieve the chain The free trading and circulation of assets P2P broke the limits of currency conversion.

The three are just like mobile phones, operating systems and WIFI. The blockchain is a mobile phone, the token is an operating system, and the WIFI is an ICO. If you only have a mobile phone and no operating system, the mobile phone is just a brick and can only be used for cutting vegetables. Similarly, if you have a mobile phone without WIFI, you cannot get useful information. The greatest value of the blockchain is to de-intermediary and achieve value superconductivity. Then, if there is no token, what is the value of conducting it? With regard to ICO, if there is no fund raised, the application developed cannot be done without any effect.