Blockchain Periodic Table

For many years, people believed that the Earth was made up of four elements - earth, water, fire and air. It wasn't until 1750 that scientists discovered that fire is the result of a process, not an element. In 1869, Dmitri Mendeleev published his periodic table of chemical elements. This table became an impetus for many scientists; work began to find ways to synthesize elements, which led to breakthroughs in many areas of science.

People today are doing the same thing with electronic currency - calling it traditional cryptocurrency, ICO tokens, utility tokens, etc. All of these terms can be confusing to the uninformed. Defining some criteria for classifying digital assets will help make things easier for investors and regulators.

Definitions

A digital asset is anything that exists in a binary format and that its owner can use. Digital assets are limited - this means that at a certain time only one person (or group of people) can own it.

A token is a unit of accounting that displays the balance of its owner in a certain digital currency. 

Cryptocurrency is a network that issues and initially distributes currency and processes transactions using a provable mathematical algorithm. The key property of cryptocurrency is its level of decentralization. The main condition of cryptocurrency is an indefinite number of completely anonymous validating participants. Bitcoin and Monero are suitable examples. 

Digital currency - in some cases, processes such as transaction confirmation, updates can be carried out by a decentralized network of users, and the issuance and distribution of currency is managed by a centralized organization. Good examples are Ripple, Stellar, IOTA.

Digital collectibles are any object that is of value or interest to a collector. In this case, a token represents ownership of a specific item. A good example is online games such as CryptoKitties.

A utility token does not function as a “security”, since the purpose of its creation is primarily to facilitate the purchase process, and not to make a profit. Such tokens are used to enable internal transactions; their value may increase due to limited quantities and rapidly growing demand...

How to determine the type of digital asset?

There are several questions, after answering which, you can find out which category the token belongs to:

Is the emission of the token predetermined by a mathematical algorithm (constitution)?

Can users change the constitution?

Does the system have a specific owner who guarantees the preservation of the basic asset?

Are the concepts of owning a digital asset identical to owning a share of a business?

What will happen if the price of a token continues to rise indefinitely?

How will this affect commissions within the system?

Can the system function without a token?

Is it possible to use other cryptocurrencies within the system?

Does the system need its own monetary policy?

If the token is used as protection against DDOS attacks, are there alternative methods of protection?

Humanity is now on the verge of a major technological breakthrough. Very soon we will be able to see completely new business models that will become possible thanks to technological improvements in cryptography tools. These new business models will rely on newly synthesized asset types and will entail significant social and economic changes. 

Therefore, it is important to have an accurate explanatory dictionary so as not to get lost in concepts.