Bitcoin, cryptocurrencies and tokens: a taxonomy of the new economy

You do not mix apples and towel s – There are 2 years of this , I proposed to you my attempt to develop a typology of tokens to better define and understand the digital assets. Since then, water has flowed under the bridges. Shitcoins have collapsed, exchanges have been hacked and others have taken their respective places within the crypto ecosystem. As the crypto-asset market has changed significantly, I am offering you a new classification of digital assets.

Le Token Classification Framework

Since the emergence of Bitcoin and the crypto-assets that followed, the term most used to designate them remains “cryptocurrencies” . Among them, bitcoin is the asset that has received the most attention.

Cryptocurrencies, crypto-assets, tokens or securities?

Bitcoin is strictly speaking a cryptocurrency , but not all digital assets fall into this category. The majority includes tokens . Semantically speaking, the most appropriate term to define this new class of assets would be that of “crypto-assets” – or crypto-assets . This pitfall is quite common in innovative fields. However, the lack of terminology and clear definitions makes it difficult to speak with nuances and carry out relevant analyzes. To understand and explain all the nuances of this ecosystem, we must therefore analyze it, then classify it.

The same properties and use cases are found in many assets of the crypto ecosystem. These similarities were used to establish a classification of digital assets. However, no typology has yet been adopted and used by all players in the crypto ecosystem . Financial regulators, institutional actors, traders and researchers each have a different perspective on the issue.

The classification of digital assets only caught the authors‘ attention after the wave of ICOs of 2017. Since then, several works of classification of digital assets have been undertaken and, in my opinion, the most successful is the classification system. token (Token Framework Classification) of Thomas Euler .

A model adapted to a protean active class

This multidimensional model forms a decision tree for mapping digital assets according to their characteristics. The first step in this classification was to establish five dimensions for tokens: purpose, utility, legal status, underlying value and technical layer .

Then, in each of these dimensions, a given asset can correspond to one of the 3 sub-dimensions. However, some assets, due to their unique characteristics, may correspond to several sub-dimensions. This is the beauty of cryptophère: assets with unique characteristics offering innovative use cases . Note that some assets may also not have one of the dimensions of the model!