ICO 101: Does my business need a token?

Why do various companies have to incorporate blockchain technology for their functionality? On top of that, why would they generate tokens when traditional databases can get the job done?

Well, the first thing that needs to be addressed is firmness. If you keep your data decentralized through the utilization of blockchain, no one will be able to meddle with the data, whereas the traditional databases work on the sole principle of trust.

Another feature that traditional networks couldn’t totally encompass and deal with is security. Their data is stored in servers, which makes them an easy target for hackers. On the other hand, blockchain and its decentralization make hackers’ life insurmountably problematic. To conduct a successful malevolent attack, hackers will have to hack not only the block in which the data is stored, but all the prior blocks as well. In practice, this is virtually impossible.

Overhead expenses in terms of IT personnel and software engineers are mandatory for big centralized companies due to their servers being constantly attacked by hackers. Having a decentralized network, on the other hand, eliminates the need for various types of hosting. As a consequence, companies that are being transparent about their activities are gaining popularity and are growing at an unprecedented rate.

All of this is great, but it still did not address our main topic, which is “Does our business need a token?” Well, it depends on the business itself. If your business is based on an exchange, service providing, betting, finance, commercial retail and asset managing or similar services, then your business can benefit by utilizing tokens. Depending on the type of business, you can incorporate different types of tokens and if you employ transparency and legitimacy as your main virtues, then you are on the right track.

Virtual currencies, perhaps most notably Bitcoin, have captured the imagination of some, struck fear among others, and confused the heck out of the rest of us.” — Thomas Carper, US-Senator

ICO has been pushing boundaries and contributing to the expansion and advancement of the crypto industry throughout 2018. With its emergence, it gained a huge attraction among the newcomers in the business. People became eager for investments, whereas others hand-picked to launch an ICO through crowd-funding.

If you want to find out more about other aspects of the ICOs, please visit https://www.coinpoint.net/icoguides for more in-depth information.