Altcoins with high growth potential. Three tokens from an analyst

This material was written by a site visitor and was compensated for.

At the moment, there are over 8.5 thousand different cryptocurrencies and tokens. However, many people do not know what is the difference between them. Today we’ll try to figure out what tokens are, how much they cost, and how they differ from cryptocurrencies such as Bitcoin and Ethereum.

In general, tokens are a generally accepted term that is often used as a general name for all cryptocurrencies. However, tokens differ significantly from Bitcoin and altcoins.

What are they needed for?

To put it simply, the main purpose of the token is the barter of certain values, the implementation of which in reality is complicated by the distance between the parties to the transactions and the size of the very values ​​​​participating in the transactions.

Often, tokens can be a source of income. To do this, you need to know which assets are likely to increase in value. To answer this question, it is important to understand why the cost of the products or services offered may increase in the future. These can be either scarce assets or assets that will grow on their own.

This is inherent in all ICOs. Initially, when its future fate is unknown, the ICO offers to buy tokens at a low price as an investor in a specific project, describing how it can generate profit in the future. If the project develops, the price of tokens will increase if they are associated with project assets or used in business.

A large number of tokens were created on the basis of the Ethereum blockchain, which at one point pushed the growth of Ethereum.

How is an IEO carried out?

Stage 1

Token developers submit an application through a special form on the exchange, followed by a thorough study of the project by the exchange.

Stage 2

If the verification is successful, the IEO date is set.

Stage 3

At the appointed time, the sale of tokens by the exchange begins. In order to buy them, you need to be registered on the Binance exchange and also undergo identity verification (provide a copy of your passport). Sometimes there are also a number of conditions imposed by the exchange (for example, a minimum quantity for purchase).

Stage 4

The token sale lasts a few minutes. If the project is good, then the sale ends very quickly. You need to try hard to buy them in time at the start of the IEO - they sell like hot cakes.

Stage 5

Within a few days after the completion of the IEO, a listing is carried out - new tokens are added to the list of exchange instruments and become available for trading.

Stage 6

At the time of listing, you sell your tokens with a large profit, as their price soars several times.

You can become a participant in the IEO on the exchange platform - Binance Launchpad.

To go to it, in the upper left corner near the Binance logo, click on the square and find the Launchpad tab. Next, follow the site's instructions.

Types of tokens

Tokens can be divided into 3 main groups:

1. Equity tokens are tokens whose value includes shares of enterprises.
2. Utility tokens . Here, as an example, we can give the accrual of any points for performing certain actions that are awarded in games.
3. Utility tokens are tokens based on goods or services.

The third type of token is the most secured, since companies that provide goods and services, or individuals, act as a guarantor of transactions. In this case, one or more goods (services) are equal to one token.

That is, tokens, in simple words, are a currency in a closed ecosystem, used to purchase goods and services, and act as a reward for certain actions.

Tokens are designed to simplify and conveniently carry out transactions between parties, as well as to speed up the transaction process using blockchain technology. This is an alternative way of investing in stocks.

EDS carrier families – Rutoken

"Rutoken" is a trade brand of the Russian developer "Active", which is engaged in the development and production of products in the field of information security. The company’s tokens, depending on the type, have FSTEC and FSB certificates, which confirms the security and compliance of cryptographic algorithms with the requirements of security standards. Now the Rutoken product line includes a large list of options for solving problems of identifying owners for use in documentation circulation systems, security, and access control.

The main Rutoken models today include

• Rutoken EDS 2.0.

A universal solution for storing keys and certificates for digital signatures without the right to subsequently export them to other media in client-bank systems. The device was the first in Russia to receive a FSB certificate for compliance with updated standards in the field of cryptographic security. A special feature of the product is that there is no need to install an additional crypto provider and special drivers when using modern operating systems.

• Rutoken S

The solution is designed for use in corporate networks of government organizations and institutions, thanks to the presence of cryptographic algorithms that meet the requirements of regulatory authorities.

• Rutoken EDS Bluetooth

A special feature of the device is the ability to certify digital signatures of documents on devices running operating systems on iOS and Android mobile devices by connecting via Bluetooth, HID devices or a micro-USB connector.

• Rutoken PINPad

The solution allows you to visualize it on the monitor screen before signing a digital signature document, and also has additional protection against phishing and page substitution attacks directly upon signing.

• Rutoken EDS Flash

The token allows you to sign documents with an electronic digital signature; an additional option for the device is the presence of Flash memory with a capacity of up to 64 GB, and the presence of an FSB certificate of compliance with all KS2 class requirements.

Read also:  What are interest rate futures? How are trades carried out?
• Rutoken Lite

A universal solution for storing digital signature keys, passwords, and other data. The token is a lightweight version, so for correct operation you additionally need a crypto provider and a set of drivers. The latter can be downloaded from the official website or obtained from a certification center upon receipt of a signature.

• Smart cards

They can be used simultaneously to store digital signature keys and authenticate the device owner in remote access systems.

Additionally, it offers tokens for secure access and creation of VPN channels for work with 1C programs, corporate email, and remote files protected from unauthorized actions. A separate group of products consists of solutions for secure two-factor authentication on various Web and Saas services. This is implemented on the basis of both tokens and special plugins for performing electronic signatures.

The difference between tokens and coins

Tokens differ from coins in how they are issued. If the coins are decentralized, they are issued by different computers, then the management of one or more organizations, or any specific person, is responsible for issuing tokens. There are exceptions, but most often all transactions associated with tokens are completely controllable, since transactions often create obligations.

The second significant difference is their cost, namely the factors that determine it. Let’s say that if the cost of Bitcoin directly depends on supply and demand, then the cost of the token is determined by the asset invested in it.

Bitcoin and altcoins operate on the basis of their own blockchain, while tokens operate on the basis of the blockchain of other cryptocurrencies. This gives users, even with minimal knowledge in this area, the opportunity to create their own tokens.

To put it simply, tokens have a wider range of applications than cryptocurrencies. But tokens have a smaller scale of use.

Electronic signature medium eToken

“E-token” is a global brand owned by Thales/Gemalto, which also specializes in the development and production of solutions for personal authentication tools. The company's products today have FSTEC and FSB certificates, which allows them to be used for storing digital signatures of any type and used for signing reports, conducting correspondence, participating in tenders and for other purposes.

The peculiarity of tokens is their wide selection of form factors, where the user is given a choice between classic options in the form of USB drives, as well as smart cards, OTP tokens, and virtual smart card emulators.

Purchasing tokens and storing them

Buying and holding tokens is similar to buying and holding cryptocurrency. Purchases are made through exchanges, exchangers, or directly from sellers.

Tokens are stored using special electronic wallets, where keys are stored and processed, and transactions are generated.

But there are no risks and problems associated with:

• keys that may be lost or stolen;
• low confidentiality associated with the operation of a public blockchain;
• difficulty of scaling in accounting.

Esmart USB key drive

• Esmart USB

Certified digital signature media that can be used to store any type of electronic signature. The token can be used for filing reports and sending documents to government agencies, participating in auctions, storing certificates for working in special electronic systems, working in VPN remote access networks, and with corporate email. The solution is fully compatible with key partner products: CryptoPRO, CryptoARM, Signal-COM, InfoTeKS, Red OS and some others. The token is fully compatible with all major operating systems: Windows (starting from version XP), Linux, Mac OS.

Why are there so many tokens?

Due to the fact that tokens are digital assets based on the blockchain of any cryptocurrency, they are much easier to create. In addition, this method is convenient because it is much safer, eliminates intermediaries in the transaction, and also speeds up the trading process.

Using existing proven algorithms, you can create tokens and conduct ICOs. There are many designers on the Internet. You just need to choose the constructor that is most suitable for you, and then proceed to creating a smart contract.

Smart contracts are a set of specific functions carried out within the structure: ownership of tokens, their transfer, replenishment of balances, etc.

Their release is standardized, which reduces the risk of losing money in the event of smart contract errors. When releasing, the name, symbol, and their quantity are selected. After all this, the information is added to the network.

Electronic signature carrier JaCarta

To increase security, keys with one-time password generators are available.

• JaCarta LT

A token in a USB case that can be used to store containers for all popular cryptographic software providers (CryptoPRO, VipNet and others). The solution can be used to store digital signatures and means of accessing software from other developers. An additional feature of the token was the presence of a memorable, stylish design in the shape of a padlock. A form factor in the form of a smart card is also available, which simplifies the integration of the solution into access control systems at sensitive facilities.

• JaCarta-2 SE

This is a FSB and FSTEC certified USB flash drive for a digital signature key, designed to work in EGAIS. Advantages of the carrier: durable housing, protection against static electricity, comfortable use due to the slight protrusion of the housing from the computer.

JaCarta-2 SE was presented at a specialized exhibition in 2022. Visually, the token has, depending on the design, the appearance of a smart card or a USB drive, which are made in the company’s classic black color with an orange border. Today the solution is certified according to the latest FSB requirements, which confirms a high degree of cryptographic security and the availability of a full set of functions. Among the features and additions introduced during the development of JaCarta-2 SE, we note:

• the presence of protection against hacking and cloning, which covers the entire list of known types of attacks from intruders;
• the ability to create an additional PIN code, which can be set separately and used as another option to increase security when entering a regular user token password;
• implementation of protection against attacks on the PIN code and complete blocking of the device by introducing an automatic recovery mechanism over time;
• no need to install a crypto provider for correct operation (a set of drivers can be downloaded from the manufacturer’s website or obtained from a certification center when registering an electronic signature).

Digital signature carrier R301 Foros

Foros produces the key carrier R301. The solution has a certificate of compatibility with CryptoPRO and provides reliable protection of electronic signature keys and cryptographic parameter certificates. A special feature of the token is that it has a durable aluminum case, which increases protection from mechanical damage. Main characteristics of the R301 Foros carrier:

• protected memory volume - 80 kilobytes;
• number of containers for storing digital signatures - 6 pieces;
• number of attempts to enter an incorrect user/administrator password - 5/15;
• possibility to unlock/recover password - yes;
• there is no function for freely deleting a container with digital signature.