Disclaimer: The Industry Talk section features insights from crypto industry players and is not part of Cryptonews.com editorial content.
There is more to the cryptocurrency industry than the world’s Bitcoins and Ethereums. Utility tokens are a crucial industry that is gaining momentum. It seems that these tokens will play a more prominent role in the coming years.
Understand utility tokens
It might seem odd to think of tokens as anything other than speculative value in the crypto space. While currencies like Bitcoin and Ethereum are also gaining traction for payments – albeit to a small extent – most other assets don’t appear to serve any immediate purpose. One important industry to watch is the utility token segment.
Utility tokens, as the name suggests, provide utility to holders within a specific ecosystem. Additionally, some utility tokens can unlock perks and benefits across different projects and platforms, empowering users in a variety of ways. A utility token is not considered speculative or an investment option, although it may have monetary value.
Utility token issuers often award these tokens to individuals who contribute funds to their project when it is in the early stages of development. An investor can buy these tokens to either access the benefits of the platform or unlock other use cases. However, a utility token never represents an ownership interest in the project, which explains why its value can differ significantly from a project’s success.
Utility coins come in all shapes and sizes spanning various projects. They all serve a specific purpose, although they are often spent in different ways. The following utility tokens are an example of how diversified this ecosystem really is.
SEE (VERSE)
The VERSE Utility Token is part of the broader Bitcoin.com ecosystem. Users can become part of this utility token’s “layer” by actively participating in the Bitcoin.com application and website. Additionally, the token includes multiple use cases ranging from trading to staking, cashback to yield farming, collateral for payments, and an educational reward for those browsing insights on the platform. It will also serve as a rewards-like solution for the upcoming NFT marketplace.
The Verse ecosystem is an add-on for crypto beginners and enthusiasts to benefit from everything under the Bitcoin.com ecosystem banner. Additionally, it serves B2B purposes as it incentivizes liquidity providers on the Verse DEX and helps optimize returns. Regardless of one’s expertise in the crypto world, the token can be acquired organically by anyone who participates.
The VERSE venture secured $33.6 million from various top-tier investors to connect the benefits and rewards of every step of the crypto journey for ordinary people.
Enjin Coin (ENJ)
The management and creation of virtual goods on the Ethereum blockchain has become of great interest to builders, enthusiasts and gamers. More specifically, the blockchain gambling and NFT industry would not be where it is today without infrastructure providers paving the way to issue such virtual goods in a traditional manner. Enjin’s software development kits allow users to easily create digital assets and integrate them into games and applications.
ENJ, the native cryptocurrency of the Enjin ecosystem, serves various utilities. Any in-game or in-app item created on Enjin will automatically have an ENJ value. In addition, it allows developers to emboss items for game environments by embedding ENJ in a smart contract. All items sold will be destroyed and the ENJ will go to the user who sold the item.
Basic Attention Token (BAT)
Brave browser users are familiar with Basic Attention Token (BAT). Its main purpose is to improve the safety, fairness and efficiency of digital advertising when browsing the Internet. BAT serves as a currency on the Brave platform designed for exchanges between users, advertisers and publishers. The new way of monetizing users’ attention by offering them a reward when they visit an ad has proven reasonably successful.
Digital ad publishers are rewarded with BAT for attracting users’ attention. A more efficient ad or content increases revenue for a publisher. Additionally, advertisers get a better return on investment because only people who are interested in their ad actively click on it. The Brave browser is an example of how Web3 will work: advertisers only interact with users who really care, and the user gets paid for their attention.
chain link (LINK)
The Chainlink ecosystem was designed to allow non-blockchain businesses to connect to blockchain platforms. It is essentially a middleware that helps smart contracts connect to external data of any kind. The LINK currency, the ecosystem’s utility token, is used to pay Chainlink network operators. In addition, it is necessary to secure the smart contract agreements in the network.
Chainlink’s decentralized oracle network supports various projects and protocols. Its hybrid smart contracts enable computations on-chain and off-chain, giving companies access to Ethereum, Solana, Terra and other blockchains. LINK helps Chainlink node operators securely transfer data to and from blockchains. Since this incentive exists, it is also a way to keep all node operators honest, as malicious behavior would nullify any rewards owed to them.
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