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Right now there are three main token types: utility, commodity and security . Each of them have their own regulation, levels of scrutiny, complexities to them and a lot of cool examples coming out.

In Bitcoin ecosystem, miners who earn the coins are at top of the chain. … Traders, the second link in the chain, strive to profit from the Bitcoin-to-fiat cycle by controlling it. The final link in the ecosystem is consumers who spend the coins to buy goods or services.

Tokens that reside on blockchains include reward tokens, currency tokens, utility tokens, security tokens, and asset tokens .

Platform tokens support dapps built on the blockchain . Security tokens represent legal ownership of a physical or digital asset. Transactional tokens serve as units of account and are exchanged for goods and services.