What are Utility Tokens?
Utility Tokens are simply user tokens that enable access to products and services offered by an organization within their ecosystem. In the cryptocurrency world, utility refers to digital tokens built on a specific blockchain ecosystem. They are a form of digital assets created for spending within a particular blockchain platform. Additionally, a utility token is a virtual currency token or a denomination used in a cryptocurrency that grants users certain rights to features.
In sum, utility tokens give people rights to products and services on a platform, meaning, when a platform embraces the use of utility tokens on its cryptosystem, users who look to perform any operation on the platform only have the utility tokens to do so. Utility tokens can be compared to coupons or gift cards. When a company like Apple gives you a gift card worth $300 to purchase any product from the Apple store, primarily, if you wish to spend that $300 in the store, no outside cash will be involved in this transaction. It is strictly an Apple-to-Apple purchase.
Why are Utility Tokens Important?
Utility tokens are great for functionality within a particular crypto ecosystem, and they are also great for investors. Firstly, utility tokens can provide value to investors who have interests in tech startups in several ways. For example, utility tokens give users access to a future product or service. Typically, a tech startup develops a digital product or service and initiates an ICO (Initial Coin Offering). This process is how your token starts to hold weight. In other words, utility tokens are essential for crypto startups, companies, or project development groups that seek to capitalize on financing and funding.
Secondly, it opens a cryptocurrency to a myriad of functionality. Utility tokens in a crypto platform give a form of sturdiness that others do not. The use case of a utility token in a cryptocurrency is only limited by the imagination of its creators.
Benefits of Utility Tokens
- Utility tokens are strictly functional. With functionality built into the core of a utility token, there is a wide spectrum of use cases for the Utility Token. For instance, it can be used as a means of exchange, earning, tolling, and rewarding within a cryptocurrency.
- Utility tokens are useful and valuable to the growth of the connected cryptocurrency. As aforementioned, tokens are a great way for businesses to gain capital from investments because usually, cryptocurrencies with an active token system have significant user adoption.
- Cryptocurrencies with utility offer far superior returns to coins with or without a clear intrinsic value or function.
- Tokens are reliable long-term investments. The bigger the token, the bigger the cryptocurrency. In most cases, that is enough to convince users to invest long term.
Examples of popular utility tokens
Cryptocurrencies at the top in terms of their utility include Bitcoin, Etherium, Solana, Cardano. Popular Utility Tokens include Filecoin, SIA, CIVIC, Golem Token, and Basic Attention Token.
What is Scorefam Token (SFT)
Scorefam Token (SFT)https://dev.scorefam.org/ is a cryptocurrency-based token that we use on the Scorefam Blockchain platform. Plus, Scorefam Token is a native token built on the Binance Smart Chain. Users can buy SFTs from Binance Coin (BNB) – the native currency on the Binance Exchange which follows the ERC 20 standard – and from Binance USD (BUSD). Scorefam Token can improve financial inclusion and enable borderless payments just like any other cryptocurrency but what sets us apart is how we have merged that system with sports betting.
“ SFT is the rocket fuel for Scorefam” as highlighted on the Scorefam homepage is merely a way to emphasize the significance of the SFT. The SFT powers the entire Scorefam ecosystem. More specifically, the Scorefam Token ($SFT) is developed to manage the betting, subscription, withdrawals, and referrals for all users on the Scorefam platform. Furthermore, It will be available on various trading platforms where it can be exchanged with other cryptocurrencies.
How Scorefam Token (SFT) Works
Utility tokens are relevant because they have many different, powerful use cases. These use cases make them useful and valuable. And a cryptocurrency is only as good as its use case.
Here are roles the SFT play in the Scorefam ecosystem
- Scorefam Token (SFT) gives the owner of the token the right to own or use a product on the Scorefam platform.
- SFT acts as a currency for payments inside or outside of the blockchain, as an alternative to traditional financial payments.
- The SFT serves toll users pay for entering the blockchain infrastructure or using decentralized service.
- It also functions as a way of improving user experience, by rewarding users with tokens for doing certain things such as referrals, leaderboard activities, and betting.
- The SFT is also a means to exchange value for services provided, such as decentralized storage.
- Earnings of certain things on the SFT platform can be distributed and shared using utility tokens.
These roles cover the wide range of uses the SFT provides.