Token Lexicon

Some crypto buzzwords and their meanings

Billy Rennekamp
Feb 26, 2018 · 5 min read
Photo by Aaron Burden on Unsplash

This article is meant as a supplement to the Re-Fungible Token (RFT) article and any other writings on the topics contained here.

Index


ERC20 token

The 20th Ethereum Request for Comments (ERC20) outlines a set of rules and recommendations a solidity developer must follow when creating a new contract representing a divisible asset, commonly referred to as a token, currency or denomination. This ensures that users, exchanges and other contracts will be able to use the new denomination in a predictable manner. Most importantly the contract needs methods to read account balances and allow the transfer of tokens between addresses. With those intact the currency can do just about everything Bitcoin can while being similarly secured by an underlying blockchain — in this case Ethereum.


ERC721 Token (Non-Fungible Token or NFT)

The 721st Ethereum Request for Comments (ERC721) outlines a set of rules and recommendations a solidity developer must follow when creating a non-fungible token (NFT). This is similar to an ERC20 token, except the tokens can’t be divided into decimal amounts because each token represents an individual asset. The most popular NFT is CryptoKitties but the standard could be used for any set of assets that benefit from representation on an immutable ledger — property, attribution, art etc.


Approve() / TransferFrom()


Bonded Curve Tokens

Name for a continuously mintable token used by Simon de la Rouviere. Named for the curve of the graph that represents the price per token (y-axis) bonded to the number of tokens in circulation (x-axis) by a predefined slope formula. The slope can be linear, exponential, logarithmic or completely arbitrary depending on the use case but most often the price increases with the number of tokens in circulation. His white paper can be found here.


Curation Markets


Liquid Tokens


Market Maker


Token Curated Registries (TCR)

If the topic of the list were “Chinese Restaurants” it would be in your interest as a Chinese restaurant owner to get included on this list to raise your visibility and reputation as such. You would pay some staking fee to be included on the list. Afterwards your submission would come under scrutiny by economically incentivized users. If one of them believed your restaurant did not belong on the list they would challenge the submission by staking a comparable bet against it. At this point a voting period would begin in which others used tokens to bet for or against the challenge. If the challenge succeeds the listing will be removed and the original Chinese restaurant stake gets divided among the challenger and the users who voted to remove it. If the challenge fails, the challenger stake gets divided between the Chinese restaurant owner and the users who voted to keep it.

All staking and voting should be carried out in a token dedicated to the topic of the list—often proposed as a Bonded Token. In doing so you deter the outcome in which the list devolves into corruption or spam. Such a low quality list would not give confidence to the token backing it, and the value of that token would drop. This would lower the value of any improperly acquired tokens, thereby diminishing the attack vector. For more info on TCRs read Mike Goldin’s original article.

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