Custom Counterparty tokens can be used for a wide range of purposes and act as their own cryptocurrency, while still running on the Bitcoin blockchain. Unlike ordinary bitcoin, custom tokens can be used to represent any kind of value.
Tokens are being used today to:
- conduct successful crowdfunding and voting,
- monetize access to decentralized application (“DApp”) software features,
- represent a product or personal brand,
- act as a sort of “blockchain domain name”,
- as an authentication token,
- to represent digital goods, such as in-game cards,
- as a proxy for a real-world good or service (i.e. tokens exchangeable for paper, biofuel, etc),
- act as a reward for providing valuable time or resources,
- as an educational service to explore the functioning of a blockchain,
- and purely for fun.