 Utility tokens are often overshadowed by their more glamorous cousin, the security token. But while [security tokens](https://leofinance.io/@leoglossary/leoglossary-security-token) grab headlines with their promises of fractional ownership in real-world [assets](https://leofinance.io/@leoglossary/leoglossary-asset), utility tokens are quietly working behind the scenes to power some of the most exciting developments in blockchain [technology](https://leofinance.io/@leoglossary/leoglossary-technology). So, what exactly are [utility tokens](https://leofinance.io/@leoglossary/leoglossary-utility-token)? Simply put, a utility token is a [digital asset](https://leofinance.io/@leoglossary/leoglossary-digital-asset) that grants access to a specific product or service. This can be anything from the ability to use a [decentralized application (dApp)](https://leofinance.io/@leoglossary/leoglossary-decentralized-applications-dapps) to the right to vote on [governance](https://leofinance.io/@leoglossary/leoglossary-governance) decisions. In short, utility tokens are the key or main feature that unlocks the power of blockchain technology as it allows users to enter/participate in the [network](https://leofinance.io/@leoglossary/leoglossary-network) and make use of it. ## Features And Capability One of the most important roles of utility tokens is to [incentivize](https://leofinance.io/@leoglossary/leoglossary-incentivize) network participation. By rewarding users for contributing computing resources or for participating in governance decisions, utility tokens help to ensure that the network remains [decentralized](https://leofinance.io/@leoglossary/leoglossary-decentralization) and that there is a strong community of users invested in its success. This is crucial for the overall [security](https://leofinance.io/@leoglossary/leoglossary-security), growth and stability of the network. Another benefit of utility tokens is that they can be used as a [medium of exchange](https://leofinance.io/@leoglossary/leoglossary-medium-of-exchange) within the network. For example, in a dApp built on a [blockchain](https://leofinance.io/@leoglossary/leoglossary-blockchain), utility tokens can be used to pay for goods and services offered by the network. Not only does it allow for fast and seamless [transactions](https://leofinance.io/@leoglossary/leoglossary-transaction), without the need for [traditional banking](https://leofinance.io/@leoglossary/leoglossary-tradfi) infrastructure but it is also a foundation for the [economic](https://leofinance.io/@leoglossary/leoglossary-economic) growth of a network.  [Image Source](https://blogs.iadb.org/integration-trade/wp-content/uploads/sites/13/2020/09/INT_Economia-digital.jpg) But perhaps the most exciting aspect of utility tokens is their potential to enable entirely new [business](https://leofinance.io/@leoglossary/leoglossary-business) models. For example, imagine a platform that allows users to rent out their spare computing power to researchers and scientists working on complex simulations. Utility tokens could be used to [pay](https://leofinance.io/@leoglossary/leoglossary-payment) for access to this computing power, creating a decentralized [marketplace](https://leofinance.io/@leoglossary/leoglossary-market) for computational resources. This same thing more or less happens here on [Hive](https://leofinance.io/@leoglossary/leoglossary-what-is-hive). We can delegate our [Hive Power](https://leofinance.io/@leoglossary/leoglossary-hive-power-hp) to projects that need them (or rent out unused RCs) and earn rewards from it. ## Conclusion While security [tokens](https://leofinance.io/@leoglossary/leoglossary-token) may be getting all the attention and focus, utility tokens are the unsung heroes of blockchain technology. They are the key that unlocks the power of decentralized networks and enables new business models. We can expect to see more and more innovative use cases for utility tokens as blockchain technology continues to evolve and mature. <br><center> <h3> Thanks For Reading! </h3><h4>Profile: [Young Kedar](https://leofinance.io/@young-kedar)</h4></center> **Recent Posts; ● [ Innovation Over Tradition In Personal Finance](https://leofinance.io/@young-kedar/innovation-over-tradition-in-personal-finance) ● [ The Buy And Build Concept: A Strategy For Growth And Personal Growth](https://leofinance.io/@young-kedar/buy-and-build-concept-a-strategy-for-personal-growth-and-wealth-building) ● [ UBI: A Basic Income For All?]( https://leofinance.io/@young-kedar/ubi-a-basic-income-for-all) ● [ Musings On The Crypto Exchange Giant]( https://leofinance.io/@young-kedar/musings-on-the-crypto-exchange-giant) ● [The Benefits of Decentralization in the Digital Age]( https://leofinance.io/@young-kedar/the-benefits-of-decentralization-in-the-digital-age) ● [ Value Investing: The Art of Finding Diamonds in the Rough]( https://leofinance.io/@young-kedar/value-investing-the-art-of-finding-diamonds-in-the-rough)** *Dolphin Support: @cryptothesis* Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@young-kedar/utility-tokens-the-unsung-heroes-of-blockchain)
| author | young-kedar | ||||||
|---|---|---|---|---|---|---|---|
| permlink | utility-tokens-the-unsung-heroes-of-blockchain | ||||||
| category | hive-167922 | ||||||
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| created | 2023-01-25 20:48:12 | ||||||
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| root_title | "Utility Tokens: The Unsung Heroes of Blockchain" | ||||||
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| voter | weight | wgt% | rshares | pct | time |
|---|---|---|---|---|---|
| kevinwong | 0 | 30,706,697,341 | 4% | ||
| mammasitta | 0 | 762,630,157 | 0.3% | ||
| rufans | 0 | 24,694,919,999 | 50% | ||
| uwelang | 0 | 10,474,336,489 | 6.4% | ||
| micefy | 0 | 2,252,655,867 | 91.8% | ||
| funnyman | 0 | 6,192,663,470 | 25% | ||
| lizanomadsoul | 0 | 1,693,148,251 | 2% | ||
| bitrocker2020 | 0 | 101,470,244,746 | 8% | ||
| arrliinn | 0 | 4,175,755,876 | 3.2% | ||
| bitcoinflood | 0 | 345,633,934,259 | 15% | ||
| gniksivart | 0 | 66,790,772,418 | 10% | ||
| runicar | 0 | 3,809,050,724 | 50% | ||
| thauerbyi | 0 | 2,847,682,365 | 14.4% | ||
| jeanlucsr | 0 | 1,826,318,357 | 3.2% | ||
| pardeepkumar | 0 | 1,556,926,397 | 50% | ||
| niallon11 | 0 | 72,828,511,331 | 4.8% | ||
| roleerob | 0 | 76,125,794,724 | 8% | ||
| minloulou | 0 | 530,610,377 | 8% | ||
| divinekids | 0 | 495,564,904 | 3.2% | ||
| khaleelkazi | 0 | 16,714,143,735 | 16% | ||
| josediccus | 0 | 490,760,640,283 | 35% | ||
| joetunex | 0 | 127,302,658,260 | 30% | ||
| caladan | 0 | 1,806,592,311 | 15.84% | ||
| senorcoconut | 0 | 2,044,716,070 | 4% | ||
| ocupation | 0 | 4,992,812,054 | 50% | ||
| joannewong | 0 | 707,037,374 | 8% | ||
| enjoyinglife | 0 | 21,944,206,485 | 50% | ||
| vempromundo | 0 | 490,150,282 | 8% | ||
| jongolson | 0 | 857,534,522,391 | 50% | ||
| manncpt | 0 | 2,571,688,483 | 2% | ||
| purefood | 0 | 1,449,489,874 | 16% | ||
| elektr1ker | 0 | 1,076,119,045 | 25% | ||
| mindtrap | 0 | 763,810,778 | 50% | ||
| organduo | 0 | 5,996,351,025 | 16% | ||
| blainjones | 0 | 15,737,196,345 | 17.5% | ||
| gadrian | 0 | 36,883,618,524 | 6.4% | ||
| tsurmb | 0 | 4,741,574,464 | 8% | ||
| break-out-trader | 0 | 7,092,228,990 | 16% | ||
| globalschool | 0 | 962,261,719 | 1% | ||
| gaottantacinque | 0 | 411,550,206 | 100% | ||
| shortsegments | 0 | 552,919,093 | 0.8% | ||
| gallerani | 0 | 972,745,672 | 16% | ||
| ireenchew | 0 | 6,666,923,637 | 11.2% | ||
| raiseup | 0 | 73,317,246,489 | 16% | ||
| gasaeightyfive | 0 | 1,049,707,227 | 100% | ||
| dlike | 0 | 37,270,995,186 | 16% | ||
| steemaction | 0 | 107,093,894,015 | 16% | ||
| cribbio | 0 | 1,528,204,007 | 100% | ||
| cwow2 | 0 | 4,336,101,812 | 2% | ||
| jacuzzi | 0 | 7,971,881,287 | 6.25% | ||
| anonsteve | 0 | 10,550,837,037 | 16% | ||
| flyingbolt | 0 | 1,185,606,995 | 16% | ||
| apokruphos | 0 | 3,528,543,385 | 1% | ||
| megavest | 0 | 43,023,473,673 | 16% | ||
| tinyhousecryptos | 0 | 490,398,783 | 5% | ||
| shauner | 0 | 2,813,778,843 | 8% | ||
| travelwritemoney | 0 | 6,312,247,837 | 16% | ||
| invest.country | 0 | 490,105,517 | 16% | ||
| leo.voter | 0 | 14,714,196,059,158 | 16% | ||
| leo.curator | 0 | 593,211,202 | 12.8% | ||
| babytarazkp | 0 | 4,255,392,038 | 40% | ||
| asteroids | 0 | 1,476,745,007 | 16% | ||
| pouchon.tribes | 0 | 10,232,067,060 | 12% | ||
| emeka4 | 0 | 2,613,430,317 | 8% | ||
| coinlogic.online | 0 | 2,588,654,100 | 8% | ||
| chloem | 0 | 2,247,137,658 | 16% | ||
| leotrail | 0 | 576,418,419 | 16% | ||
| sacrosanct | 0 | 6,613,627,775 | 15% | ||
| gloriaolar | 0 | 13,993,667,604 | 15.75% | ||
| hivebuzz | 0 | 10,222,764,363 | 2% | ||
| leofinance | 0 | 37,345,086,168 | 16% | ||
| x9ed1732b | 0 | 4,702,152,326 | 14.4% | ||
| beehivetrader | 0 | 952,749,817 | 8% | ||
| schmidi | 0 | 945,651,633 | 1% | ||
| w-t-fi | 0 | 1,791,394,084 | 100% | ||
| adedayoolumide | 0 | 2,702,043,470 | 8% | ||
| eddie-earner | 0 | 749,088,822 | 8% | ||
| wrapped-leo | 0 | 2,591,361,655 | 16% | ||
| reonarudo | 0 | 1,106,005,824 | 8% | ||
| leo.tokens | 0 | 1,321,995,852 | 16% | ||
| rondonshneezy | 0 | 1,138,207,708 | 8% | ||
| cielitorojo | 0 | 6,594,629,368 | 8% | ||
| ctpx | 0 | 0 | 20% | ||
| brando28 | 0 | 2,554,577,468 | 50% | ||
| solymi | 0 | 7,224,900,183 | 4.8% | ||
| cbridges573 | 0 | 4,452,033,095 | 15% | ||
| elongate | 0 | 526,466,193 | 16% | ||
| amongus | 0 | 579,614,861 | 16% | ||
| elgatoshawua | 0 | 1,987,061,510 | 8% | ||
| b-leo | 0 | 2,756,009,491 | 16% | ||
| creodas | 0 | 650,850,832 | 12% | ||
| impurgent | 0 | 656,217,531 | 40% | ||
| zwhammer | 0 | 532,413,449 | 25% | ||
| brume7 | 0 | 735,169,429 | 8% | ||
| steentijd | 0 | 2,913,874,181 | 8% | ||
| bella76 | 0 | 585,048,796 | 8% | ||
| cryptoccshow | 0 | 3,160,157,337 | 25% | ||
| cugel | 0 | 4,316,853,501 | 8% | ||
| soturi | 0 | 874,230,611 | 100% | ||
| kushyzee | 0 | 562,299,117 | 8% | ||
| scrubs24 | 0 | 4,291,432,425 | 12% | ||
| iproto | 0 | 1,166,352,979 | 25% | ||
| mcsherriff | 0 | 2,892,368,402 | 15.84% | ||
| cryptothesis | 0 | 208,053,148,823 | 100% | ||
| waivio.welcome | 0 | 974,423,506 | 1.86% | ||
| listnerds | 0 | 85,756,654,934 | 20% | ||
| saboin.leo | 0 | 101,629,055 | 20% | ||
| femcy-willcy | 0 | 856,371,036 | 8% | ||
| grabapack | 0 | 4,141,735,196 | 8% | ||
| p-leo | 0 | 2,350,562,872 | 16% | ||
| khaltok | 0 | 1,404,453,624 | 16% | ||
| xleo.voter | 0 | -45,651,200 | -16% | ||
| p-hive | 0 | 3,633,965,932 | 16% | ||
| thoth442 | 0 | 564,117,770 | 8% | ||
| bnb-hive | 0 | 343,819,528,114 | 16% | ||
| thefed | 0 | 11,361,874,889 | 100% | ||
| cubdaily | 0 | 2,707,769,094 | 16% | ||
| marriot5464 | 0 | 1,225,424,434 | 60% |
Congratulations @young-kedar! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s) <table><tr><td><img src="https://images.hive.blog/60x70/http://hivebuzz.me/@young-kedar/upvotes.png?202301252041"></td><td>You distributed more than 1000 upvotes.<br>Your next target is to reach 1250 upvotes.</td></tr> </table> <sub>_You can view your badges on [your board](https://hivebuzz.me/@young-kedar) and compare yourself to others in the [Ranking](https://hivebuzz.me/ranking)_</sub> <sub>_If you no longer want to receive notifications, reply to this comment with the word_ `STOP`</sub> To support your work, I also upvoted your post! **Check out our last posts:** <table><tr><td><a href="/hive-139531/@hivebuzz/proposal-2324"><img src="https://images.hive.blog/64x128/https://i.imgur.com/RNIZ1N6.png"></a></td><td><a href="/hive-139531/@hivebuzz/proposal-2324">The Hive Gamification Proposal</a></td></tr></table>
| author | hivebuzz |
|---|---|
| permlink | notify-young-kedar-20230125t210533 |
| category | hive-167922 |
| json_metadata | {"image":["http://hivebuzz.me/notify.t6.png"]} |
| created | 2023-01-25 21:05:33 |
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| root_title | "Utility Tokens: The Unsung Heroes of Blockchain" |
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hiveblocks