ProperT is a utility Ethereum-based (ERC20) token that can be bought with crypto or wire transfer… but what are tokens exactly? From utility tokens to NFTs, tokens are taking center stage when it comes to blockchain technology, and it may change the way companies and individuals operate in the future.
Setting Tokens & Crypto Apart
Both tokens and crypto can be bought, traded, and fluctuate in value. Understanding the difference is actually quite simple. Cryptocurrencies operate on their own blockchain networks, like Bitcoin or Ethereum, for example. When it comes to buying, selling, and trading, they operate independently and require a lot of investment, maintenance, and management. Tokens, however, are free from all the responsibility of managing a network by simply using a network’s infrastructure as railways.
As many smart contracts (contracts created by groups or individuals that automatically execute specific instructions and actions within a blockchain network) were being created, tokens surfaced as a way to let these smart contracts interact.
Using the Ethereum network as an example:
- Ethereum manages its own blockchain and stores information about transactions.
- Actions taking place directly on the Ethereum network use its cryptocurrency, Ether. (ETH)
- Unlike Ether, the official Ethereum network cryptocurrency, Ethereum-issued tokens (like ProperT), known as ERC20 tokens, use the network’s mainframe for infrastructure.
- ERC20 tokens make it easier for companies to develop blockchain products and terms than building their own cryptocurrency.
- There are several types of tokens, and ERC20 tokens fall under the category of ‘utility tokens, ’ meaning they are transferable and can be used for payments.
Much like going into an arcade and trading your cash for tokens that serve the purpose of playing and trading for prizes. In a simple manner, ERC20 tokens essentially work the same way; you can’t spend arcade tokens outside of the arcade, but the terms specify that you can spend them within the arcade or swap them for the cash equivalent in return.
Why do We See More Tokens?
As more people and businesses hop on the blockchain train, tokens allow their supporters and users to buy, sell, and trade value in a personalized and specific way. There are many kinds of tokens:
- Non-Fungible Tokens (NFTs)
- Governance Tokens
- Platform Tokens
- Transaction Tokens
- Security Tokens
- Utility Tokens
For now, we will focus on utility tokens.
Utility Tokens:
A utility token serves any purpose a business or individual wants, allowing users to access particular services or products. Much like a smart contract, these tokens can be programmed to execute specific tasks or function in specific ways. Like ProperT shows, this can be anything from applying rewards for users or accessing exclusive items or services. These tokens can be bought, swapped, spent, and transferred.
Approaching Tokens
To acquire tokens, it’s easy! You can change crypto for tokens in portals known as swaps. Different swaps function for different cryptos and tokens; for example, Uniswap functions with ERC20 tokens, so do your research first. You can also simply purchase tokens in a crypto exchange.
In the case of ProperT, tokens can be purchased in the buying portal with crypto or wire transfer. Acquire ProperT tokens by visiting www.GetProperT.com and don’t miss the opportunity of a lifetime!
