6.2 Understanding Tokenization - Video Tutorials & Practice Problems

So we talked about this example of tokenizing a car, but, digital tokens are used regularly now and there are many types of digital tokens used for different purposes. For example, Audiocoin is a cryptocurrency designed for the music industry. In fact, Audiocoin was actually issued by Bjork in one of her albums, so when you bought her album, you would actually get a certain amount of Audiocoin and that Audiocoin you could like freely go to a cryptocurrency exchange and sell it if you wanted to. But it was just an additional value add that was provided to you by Bjork with her CD. So key things you need to consider is that these cryptocurrencies are used for many different purposes and in the case of these digital tokens, Audiocoin is a cryptocurrency designed for the music industry, that's one example, but there are others, for example Golem. Golem actually focuses on shared economy computing power. What that means by that is you may be familiar with Airbnb where you can actually take a spare room in your house and actually get paid for actually renting out your room. Well, in Golem, you actually get to rent out computing power on your computer. So you actually can earn Golem tokens for actually letting other people run their programs on your computer. So you're basically sharing your computing power and you're getting compensated in this Golem in cryptocurrency, it's a totally different use of a digital token. VeChain is a different platform which is used primarily for tracking supply chains on blockchain. As we mentioned, if you can actually create a digital representation of an asset, you can track that asset moving across a supply chain, well VeChain actually uses this by using these digital tokens Steemit is a very interesting use of digital tokens and the reason bout it is that unlike social networks where you actually can publish content and not get any rewards like for instance, when you publish on Facebook or you publish on Twitter, you don't get any type of compensation for it, but if you create content and you publish it on Steemit you get rewarded in their cryptocurrency. So you can earn Steem for actually publishing content on the Steemit platform, very novel use of these digital tokens. Another one that I wanna talk to you which is very, very near and dear to me is CryptoKitties, and this is just as an example of what's known as these digital collectibles. Now, a CryptoKitty is a type of digital cat, it is what's known as a non-fungible cryptocurrency, so it's a non-fungible token that you own and what I mean by this is a fungible token is a token that every one owns the same. So for example, if I send you a Bitcoin, it's not that you need a specific bitcoin, I'm sending you a Bitcoin, just like a dollar is a dollar, doesn't matter what dollar is, but a non-fungible token is a token that actually is unique. In the case of these CryptoKitties, this is one example of a CryptoKitty, this is a CryptoKitty I own. This is by CryptoKitties called Satoshi Catamoto. Now this is just one CryptoKitty that I own, I have multiple other CryptoKitties and I have bred them with other CryptoKitties, so my CryptoKitties have had other CryptoKitties, it's like the gift that keeps on giving. So, you can even go visit Satoshi and if you go there and say hi on my behalf, but that's a live link to my CryptoKitty Satoshi. Now, Satoshi Cataoto is a unique digital asset, which I own and if I wanted to it's someday, I could trade it or sell it to someone else. As a matter of fact, some of the first CryptoKitties actually, in this case let's talk about Genesis, it's sold for over $100,000 and these CryptoKitties hold value and you can sell 'em and trade 'em. One of the key areas where this is actually is happening is in digital collectibles. So, some CryptoKitties are actually being pushed towards being licensed CryptoKitties, so you can have a celebrity actually issue a line of CryptoKitties, which are actually associated with a celebrity and therefore they hold value. Much like for example, a baseball card. A baseball card could be worth many thousands of dollars because it's a unique, very, very limited amount of these baseball card associated with a sports celebrity. Well the same thing applies to some of these digital collectibles. So, as we go on, I wanna talk to you about other uses of digital tokens.