Application Possibilities For Crypto Tokens in Business Management Models
In the blockchain world, crypto-assets can be classified as either native coins or crypto tokens. Native coins are the more famous assets such as; Ethereum and Bitcoin. They act as a medium of trade both to provide a payment infrastructure or as an alternate currency.
On the other hand, crypto tokens have wide use cases, usually based on the ecosystem they’re based on and the issuing body. Use case models for crypto tokens are far from being entirely mapped out, with new unique launches being common. This article looks at the application of such tokens based on blockchain in business management.
The Different Classes of Tokens and Their Applicability
Tokens aren’t all similar. The different platforms and coding give them different characteristics, such as levels of fungibility. The main classes are; Payment tokens, Asset Tokens, utility tokens, and security/equity tokens.
Business Management Model Under Payment Tokens
Payment tokens are created to serve as a unit of trade. They’re used as a means of payment for goods and services or as a means of transferring funds. The most conducive business management model usage under the payment tokens is the;
Financial and Accounting Management
Payment tokens, just like native crypto coins, can play an instrumental role in digitizing the whole financial management process. Digitization will be very beneficial thanks to better security as well as more efficiency.
There are various ways it could aid a lot in bettering the financial and accounting management process. They’re through the possibility of reduced human errors in the team, reduced incidences of fraud, and a more transparent system of governance.
Business Management Model under Asset Tokens
Asset tokens are a type of crypto tokens that are usually backed by an underlying asset. Business Management use case models under Asset Tokens include;
Asset tokens also serve as an investor’s equity stake or debt stock to a business. In that sense, they can be utilized by the board of directors as a good shareholders’ equity representative to a firm. A firm’s creditors may also use them to signify and track their debt to the venture.
Such a digitized way of representing shareholders’ equity or debtors’ debt stock can enable a more fluent board of directors meeting. In addition, they make the assessment and tracking of a firm’s equity growth or debt stock much easier and convenient without having to maintain separate journals.
Business Management Models Under Utility Tokens
A utility token is issued to act as a fundraiser for a blockchain project. They are also issued to be the sole way of digitally accessing the services of the issuing firm. Usage of such in business management is applicable in;
A firm’s finance manager in a new venture startup or a firm seeking to invest in other projects could find utility tokens very useful. Since they are utilized for fundraising, they can be presented to potential venture capitalists to find the firm’s project.
As the sole way of digitally accessing the issuers’ services, they could come in handy under sales and marketing management. In addition, monitoring the usage rate for services per customer is made possible via monitoring the tokens issuance rate.
A firm may also be able to draw patterns and gather as to which services require more marketing. Marketing strategies can then be drafted to increase usage based on the data collected.
Business Management Models Under Security Tokens
An increasingly popular class of tokens, Security tokens are used as a means of digitally authenticating identities. They do this by storing critical personal data that is unique to the specific user. Non-Fungible Tokens (NFTs) fall in this category, characterized by their unique metadata and source coding. Use cases include;
The application of asset tokens in the sales department of industries such as real estate or art has been rising. It is especially true concerning NFTs, whose characteristics make them the perfect digital representations of physical items in real estate and art.
The digital nature of NFTs makes it much easier to ensure traceability of items all along the trading path by the sales management team. They also help reduce counterfeits in arts or con men in real estate since an NFT’s metadata and code can’t be duplicated.
Thanks to security tokens’ ability to store data about a person and identify them digitally, their usage in general management are quite probable. To be more specific, firms requiring workers to work remotely could find it most useful.
Security tokens can be utilized to track employee attendance and activities at the digital workplace without installing sophisticated and costly tracking software. In addition, the system won’t necessitate counties’ storage facilities while being impermeable to tampering, thanks to the 51% attack rule.
It is generally believed that all the current use cases of blockchain technology are just a scratch on the surface of its true potential. Tokens represent what is probably among the most diversified and vibrant cryptographic assets in the blockchain world.
While most tokens are strictly within the blockchain world, the above cases show the potential to increase use cases in day-to-day business management. The different classes of tokens make them uniquely fitted to roles in different spheres of business management. As the world increasingly becomes more digitized, their usage in the various roles could streamline business management further.