What is cryptoactive (general concept)
Cryptoactive is a digital financial tool issued by a team of developers with the aim of attracting financial resources and its further use as a financial asset, created using the principles of cryptography.
A cryptoactive should have all the signs of cryptocurrencies, that is, it should be in free circulation, it should be easy to sell and buy. For this purpose, there are exchanges – intermediaries, on which critical assets are sold and bought. The more exchanges the crypto asset supports, the easier it is to sell and buy it, the better.
But unlike cryptocurrency, a crypto asset is not limited to one payment function. It should have some kind of semantic load, that is, be useful to society. Depending on the useful function, role and working mechanisms, crypto assets are divided into various categories.
What are crypto assets
There are many different classifications of crypto assets. The purpose of all these classifications is to find assets that have the same properties and combine them into one group. This is to make it easier to regulate and regulate.
Consider the classification, determined by the principle of utility, as well as by the role that assets play in society.
Underlying assets include Bitcoin. It is not for nothing that Bitcoin exists and altcoins exist separately. That is all the rest. Bitcoin was the first cryptocurrency, the ancestor of cryptocurrencies. Other cryptocurrencies improve or develop certain properties of cryptocurrencies. Although there are coins that simply copy Bitcoin or any other successful cryptocurrency.
More basic cryptocurrencies include Ethereum. Ethereum became the founder of a new direction in the field of cryptocurrencies. Thanks to smart contracts located on the Ethereum network, it became possible to conduct ICOs and raise funds. Smart contracts also have the property of transmitting and storing any information on the network, which, thanks to blockchain technology, cannot be deleted, changed, or falsified in any other way. All transactions on the Ethereum network are transparent and anyone can track them.
The main goal of cryptocurrencies, as well as any fiat money, is to be a universal medium of exchange. And the more universal cryptocurrency as a medium of exchange, the more stores accept it, the better for cryptocurrency and the higher its value. Also, to determine the value of cryptocurrency, the infrastructure that supports it is important. It is important that the cryptocurrency is served by as many exchanges, wallets, exchangers as possible. It should be easy to store and easy to buy, sell or exchange for any other cryptocurrency or fiat money. And the easier it is to do, the higher the cost of cryptocurrency.
Platforms at their base implement and support smart contracts. Thanks to this, on the platform, you can create various projects and applications that allow you to use the created smart contracts for various purposes. Smart contracts are necessary for the transfer and storage of any information. This may be information about cash transactions. In this case, smart contracts can be used as a payment system or other financial instrument. This can be information about various transactions and contracts. Thus, a similar application can be used as a registry. For example, a register of copyrights, a register of rights to real estate, or a register of public services provided. After all, smart contracts can be widely applied in the public sector in the provision of public services, as well as for fixing citizens’ appeals. Smart contracts are transparent. The information stored in smart contracts is easy to track, it cannot be deleted, changed or falsified.
Service tokens perform a certain useful function and serve as a means of calculation and interaction in any application. Service tokens often differ from platforms in that they are located on a third-party blockchain and depend on it. Usually, service tokens are on the Ethereum blockchain, although they can be on any other blockchain that uses smart contracts. The value of service tokens depends on their usefulness, as well as on how many people use a program or application to ensure the operation of which service tokens are used. The greater the need for tokens, the higher their price.
These are tokens secured by a material asset. These tokens are similar to stocks of enterprises. Their value is secured by the tangible assets of the company and in order to confirm the security of the tokens with the tangible assets of the company, they constantly undergo an independent audit. These tokens fall under the law “On Securities”.
These are tokens that are provided with goods or services of their issuer. For example, computing power, if the company is mining. Typically, tokens related to crypto products are on a separate blockchain. Their value depends on the price of the goods or services with which they are provided. They are distinguished from investment tokens by the fact that crypto goods do not undergo a mandatory audit, like investment tokens, their price is quite arbitrary and determined by the market. They also do not fall under the Law on Securities.
Tokens that are used to organize the work of a specific application. They differ from service tokens in a narrower focus. Service tokens can work within the framework of the interaction of several applications, application tokens work only on one application. Their cost depends on the usefulness of this application and on how many people use it.
A stable cryptocurrency is a cryptocurrency that has a stable price, as it is provided with real assets. By their nature, stable cryptocurrencies are close to investment tokens, since their value is secured by assets. The difference between stable cryptocurrencies and investment tokens is that investment tokens can be provided with any assets, including unstable ones. Stable cryptocurrencies should be provided with such assets that the world community has called stable for a long period of time. Examples of such assets: US dollar, euro, gold, oil. An example of a stable cryptocurrency is Tether, a cryptocurrency that is backed by US dollars, which are on the balance of Tether. Each issued USDT corresponds to 1 USD on the balance of Tether.