1.2. Cryptocurrencies and tokens

They are digital currencies or virtual assets, which use encryption as a security layer, making transactions more secure.

They are created on a blockchain network and transactions take place without the intermediation of a third party such as banks or governments.

In recent years, this market has expanded surprisingly, solving problems with its decentralization and speed.

Today, it is possible to use cryptocurrencies as a means of exchange, purchase services and products, perform various types of registrations and as a store of value.

The assets that are tokenized can be divided into small fractions and this generates more accessibility and ease of commercialization.

There are currently several types of tokens, see some examples below:

Utility Token

The Utility Token has the function of being useful in a network or application. It does not need to be just a token for the store of value and can give the right to actively contribute to the system.

Security Token

Security Token is mainly used by large corporations to raise money from investors. By holding this type of token, the investor receives dividends, part of the profit or interest rate from corporations.

NFT (Non-Fungible Token)

NFT's function is to represent unique and rare things. Can be used in: artwork, music, videos, photos, cars, jewelry, etc.