Blockchain Tokens and Cryptocurrencies

Abstract

The first three chapters of this book aim at providing readers with a fundamental understanding of the various attributes and components of blockchain technology. For many public blockchain implementations, the use of tokens or cryptocurrencies constitutes a major benefit. As such, this chapter aims at first familiarizing readers with various blockchain governance types and considerations in order to explain the concept of a ‘fork’ in a blockchain. It is also important to note that a permanent or hard blockchain fork often results in the creation of a new type of cryptocurrency. The chapter provides several examples of such occurrences. The various types of blockchain token types such as equity and utility tokens, as well as current token standards, such as ERC 20, 223 and 721 are also discussed in this chapter. The last major section of this chapter provides readers with an overview of some more popular cryptocurrency types such as Bitcoin, Ether, Ripple, Litecoin and Monero, to name a few. Finally, a brief discussion of some major, current crypto exchange platforms, such as Bittrex, Coinbase and Bitfinex, is also provided. As mentioned in the chapter, as of February 2020, there were close to 5,400 cryptocurrencies created with a total market capitalization of over $200,000,000. While the long-term performance and sustainability of most cryptocurrencies currently on the market remain highly uncertain, it is important for auditors and aspiring blockchain professionals to be familiar with the basic attributes of the more popular cryptocurrencies discussed in this chapter.