New token types – everything you need to know about them

Maciej Zieliński

02 Feb 2021
New token types – everything you need to know about them

Which tokens are the most popular? What new token types are worth watching in 2021? 

Although cryptographic tokens are created from just a few lines of code, the potential they hold is gigantic. We are already using them today to create digital equivalents of real assets such as shares and real estate or to create innovative product tracking systems in the supply chain. And as digitisation continues, the list of their applications continues to grow.

Currently, the most popular type of token is created in Ethereum ERC-20. However, the continuous development of Blockchain technology in recent years has resulted in the creation of numerous alternatives. New types of tokens are characterised by innovative technological solutions and adaptation to specific business needs. Which of them are particularly worth taking interest in?

Types of tokens 

To better understand the possibilities of this technology, it is worth taking a closer look at its types. Among the many ways to distinguish tokens, the most basic is the division into fungible tokens and non-fungible tokens.):

Fungible tokens 

They make up the vast majority of all tokens. The term fungible means that a single token is indistinguishable from other tokens in the same blockchain ecosystem. This allows it to find uses as a cryptocurrency, credit or exchange of value. A great example of such a token is the well-known Bitcoin: no Bitcoin is more valuable or scarcer than another. If it were otherwise, their free exchange would not be possible, which would disrupt the entire system. 

Convertible tokens are analogous to conventional currencies in this respect: all euros, zlotys, or dollars have exactly the same value. It is precisely the fungibility that makes them useful. Thanks to it we do not have to individually estimate the value of each zloty during a transaction. 

There are 3 categories of fungible tokens:

Payment:

Bitcoin, Litcoin or Dash - this is what they are. Convertible payment tokens were created to be used for transactions between parties instead of or alongside fiat currencies. Their value is determined by the number of people who wish to use them and the number of merchants.

Utility Tokens:

These tokens work in exactly the same way as tokens in an arcade. You exchange tokens for the entertainment available there, but you can use tokens to access services, products or other value on the platform they power.  

The most common example of such a token is Ether. ETH is used to pay for the execution of smart contracts on the Ethereum network. Of course, Ether can be used to make other payments as well, but powering contracts, dapps and DAOs is its primary purpose. 

It is Utility tokens that are used during ICOs, where they serve as a tool to raise funds for the creation of a project in which they can later be used. 

Security tokens

Security tokens are primarily distinguished from Utility tokens by securing the value of the former in real assets. By buying Utility tokens we can of course earn from the increase in their value, but in reality we own nothing - they are worth what the market pays for them and can always fall to zero.

Such tokens are the digital equivalent of real assets. Primarily stocks, bonds and real estate. It is these that are issued during STO and it is these that allow for the tokenisation of precious metalsor luxury cars

New token types

Non-fungible tokens

In opposition to fungible tokens are non-fungible tokens. Non-exchangeability in their case means that each token in a given system is unique. Such tokens have no standard value and often do not allow equivalent exchange of one for another. Each token represents different, unique ownership or identity information. The primary uses of non-fungible tokens are:

Certification 

This is potentially the most important application of this type of token. A token can be used to prove the origin of a document, a piece of data or any physical object in the real world. And because such tokens cannot be duplicated and the information they contain cannot be manipulated, we can be sure that such a token - a certificate of authenticity - will never be counterfeited. 

Securing the authenticity of works of art, luxury fashion or exotic cars - the possibilities of such tokens go much further. If land records were transferred to the blockchain, ownership would just be a matter of having a token corresponding to the property. The same goes for resource extraction rights, or water rights. Non-fungeable tokens have countless potential applications wherever certification of ownership is important. 

 Identity of the things

Like people, products, machines and raw materials can also have a digital identity.  IDoT is a key component of blockchain-based supply chains and IoT applications. 

For example, by assigning unique tokens to products, it becomes possible to trace their entire journey in the supply chain - from raw material extraction to production to sale to retail customers. This not only makes it possible to secure their origin, but also to control transport conditions, especially important in industries such as food. If a spoiled chicken ends up in a supermarket, tokens make it easy to determine at which point in the chain the problem occurred and which party is responsible..  

New token types

What new types of tokens can be used in your project?

  • ERC-721
  • ERC-223
  • ERC- 777
  • ERC-1155 
  • FabToken

ERC-721

The most important advantage of the ERC-721 standard is the ease of creating unalterable tokens. Introduced in 2018, it finds its use wherever distinguishable assets need to be tracked. 

This type of token has gained buzz with the rise in popularity of Ethereum-based collectible game CryptoKitties.

New token types
Source: CoinMetrics Blog

ERC-223

This token is intended to solve the UX shortcomings of other ERC tokens. Occasionally a user will send the token to the wrong wallet address or worse, a smart contract, thus losing it forever. This feature of other standards can effectively deter less familiar users and limit the widespread adoption of a solution. 

ERC-223 solves this problem by alerting users who accidentally send tokens to a smart contract address and cancelling the transaction. 

ERC- 777

The aim of implementing ERC-777 was to improve on the basic ERC-20 standard. What makes it unique is that it introduces a wide range of transaction handling mechanisms while being backwards compatible with ERC-20. 

Among other things, the standard allows for the definition of operators to send tokens on behalf of a given user and gives holders far greater control over their tokens. One of its most innovative features is the option to mint or burn tokens. It also has the potential to significantly simplify token transfers compared to other standards. 

ERC-1155 

ERC-1155 is a multi token standard. This means that it allows any combination of fungible and non-exchangeable tokens to be managed under a single contract, including the transfer of multiple token types simultaneously.

FabToken

Unlike ERC standard tokens, which are created using the Ethereum protocol, FabToken runs on the Hyperledger Fabric Blockchain. 

This system provides a simple interface to tokenise resources on the Fabric protocol, using the security and validation mechanisms that the Fabric protocol provides. Importantly, users do not need to use smart contracts to create or manage tokens. Tokens can establish immutability and ownership of a resource without requiring the user to write and validate complex business logic. Owners can use trusted partners to execute and validate transactions, without having to rely on partners from other organisations. 

Want to know which token will best suit your project needs? Our experts will be happy to answer all your tokenization questions!

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AI in Real Estate: How Does It Support the Housing Market?

Miłosz Mach

18 Mar 2025
AI in Real Estate: How Does It Support the Housing Market?

The digital transformation is reshaping numerous sectors of the economy, and real estate is no exception. By 2025, AI will no longer be a mere gadget but a powerful tool that facilitates customer interactions, streamlines decision-making processes, and optimizes sales operations. Simultaneously, blockchain technology ensures security, transparency, and scalability in transactions. With this article, we launch a series of publications exploring AI in business, focusing today on the application of artificial intelligence within the real estate industry.

AI vs. Tradition: Key Implementations of AI in Real Estate

Designing, selling, and managing properties—traditional methods are increasingly giving way to data-driven decision-making.

Breakthroughs in Customer Service

AI-powered chatbots and virtual assistants are revolutionizing how companies interact with their customers. These tools handle hundreds of inquiries simultaneously, personalize offers, and guide clients through the purchasing process. Implementing AI agents can lead to higher-quality leads for developers and automate responses to most standard customer queries. However, technical challenges in deploying such systems include:

  • Integration with existing real estate databases: Chatbots must have access to up-to-date listings, prices, and availability.
  • Personalization of communication: Systems must adapt their interactions to individual customer needs.
  • Management of industry-specific knowledge: Chatbots require specialized expertise about local real estate markets.

Advanced Data Analysis

Cognitive AI systems utilize deep learning to analyze complex relationships within the real estate market, such as macroeconomic trends, local zoning plans, and user behavior on social media platforms. Deploying such solutions necessitates:

  • Collecting high-quality historical data.
  • Building infrastructure for real-time data processing.
  • Developing appropriate machine learning models.
  • Continuously monitoring and updating models based on new data.

Intelligent Design

Generative artificial intelligence is revolutionizing architectural design. These advanced algorithms can produce dozens of building design variants that account for site constraints, legal requirements, energy efficiency considerations, and aesthetic preferences.

Optimizing Building Energy Efficiency

Smart building management systems (BMS) leverage AI to optimize energy consumption while maintaining resident comfort. Reinforcement learning algorithms analyze data from temperature, humidity, and air quality sensors to adjust heating, cooling, and ventilation parameters effectively.

Integration of AI with Blockchain in Real Estate

The convergence of AI with blockchain technology opens up new possibilities for the real estate sector. Blockchain is a distributed database where information is stored in immutable "blocks." It ensures transaction security and data transparency while AI analyzes these data points to derive actionable insights. In practice, this means that ownership histories, all transactions, and property modifications are recorded in an unalterable format, with AI aiding in interpreting these records and informing decision-making processes.

AI has the potential to bring significant value to the real estate sector—estimated between $110 billion and $180 billion by experts at McKinsey & Company.

Key development directions over the coming years include:

  • Autonomous negotiation systems: AI agents equipped with game theory strategies capable of conducting complex negotiations.
  • AI in urban planning: Algorithms designed to plan city development and optimize spatial allocation.
  • Property tokenization: Leveraging blockchain technology to divide properties into digital tokens that enable fractional investment opportunities.

Conclusion

For companies today, the question is no longer "if" but "how" to implement AI to maximize benefits and enhance competitiveness. A strategic approach begins with identifying specific business challenges followed by selecting appropriate technologies.

What values could AI potentially bring to your organization?
  • Reduction of operational costs through automation
  • Enhanced customer experience and shorter transaction times
  • Increased accuracy in forecasts and valuations, minimizing business risks
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Want to implement AI in your real estate business?

Nextrope specializes in implementing AI and blockchain solutions tailored to specific business needs. Our expertise allows us to:

  • Create intelligent chatbots that serve customers 24/7
  • Implement analytical systems for property valuation
  • Build secure blockchain solutions for real estate transactions
Schedule a free consultation

Or check out other articles from the "AI in Business" series

AI-Driven Frontend Automation: Elevating Developer Productivity to New Heights

Gracjan Prusik

11 Mar 2025
AI-Driven Frontend Automation: Elevating Developer Productivity to New Heights

AI Revolution in the Frontend Developer's Workshop

In today's world, programming without AI support means giving up a powerful tool that radically increases a developer's productivity and efficiency. For the modern developer, AI in frontend automation is not just a curiosity, but a key tool that enhances productivity. From automatically generating components, to refactoring, and testing – AI tools are fundamentally changing our daily work, allowing us to focus on the creative aspects of programming instead of the tedious task of writing repetitive code. In this article, I will show how these tools are most commonly used to work faster, smarter, and with greater satisfaction.

This post kicks off a series dedicated to the use of AI in frontend automation, where we will analyze and discuss specific tools, techniques, and practical use cases of AI that help developers in their everyday tasks.

AI in Frontend Automation – How It Helps with Code Refactoring

One of the most common uses of AI is improving code quality and finding errors. These tools can analyze code and suggest optimizations. As a result, we will be able to write code much faster and significantly reduce the risk of human error.

How AI Saves Us from Frustrating Bugs

Imagine this situation: you spend hours debugging an application, not understanding why data isn't being fetched. Everything seems correct, the syntax is fine, yet something isn't working. Often, the problem lies in small details that are hard to catch when reviewing the code.

Let’s take a look at an example:

function fetchData() {
    fetch("htts://jsonplaceholder.typicode.com/posts")
      .then((response) => response.json())
      .then((data) => console.log(data))
      .catch((error) => console.error(error));
}

At first glance, the code looks correct. However, upon running it, no data is retrieved. Why? There’s a typo in the URL – "htts" instead of "https." This is a classic example of an error that could cost a developer hours of frustrating debugging.

When we ask AI to refactor this code, not only will we receive a more readable version using newer patterns (async/await), but also – and most importantly – AI will automatically detect and fix the typo in the URL:

async function fetchPosts() {
    try {
      const response = await fetch(
        "https://jsonplaceholder.typicode.com/posts"
      );
      const data = await response.json();
      console.log(data);
    } catch (error) {
      console.error(error);
    }
}

How AI in Frontend Automation Speeds Up UI Creation

One of the most obvious applications of AI in frontend development is generating UI components. Tools like GitHub Copilot, ChatGPT, or Claude can generate component code based on a short description or an image provided to them.

With these tools, we can create complex user interfaces in just a few seconds. Generating a complete, functional UI component often takes less than a minute. Furthermore, the generated code is typically error-free, includes appropriate animations, and is fully responsive, adapting to different screen sizes. It is important to describe exactly what we expect.

Here’s a view generated by Claude after entering the request: “Based on the loaded data, display posts. The page should be responsive. The main colors are: #CCFF89, #151515, and #E4E4E4.”

Generated posts view

AI in Code Analysis and Understanding

AI can analyze existing code and help understand it, which is particularly useful in large, complex projects or code written by someone else.

Example: Generating a summary of a function's behavior

Let’s assume we have a function for processing user data, the workings of which we don’t understand at first glance. AI can analyze the code and generate a readable explanation:

function processUserData(users) {
  return users
    .filter(user => user.isActive) // Checks the `isActive` value for each user and keeps only the objects where `isActive` is true
    .map(user => ({ 
      id: user.id, // Retrieves the `id` value from each user object
      name: `${user.firstName} ${user.lastName}`, // Creates a new string by combining `firstName` and `lastName`
      email: user.email.toLowerCase(), // Converts the email address to lowercase
    }));
}

In this case, AI not only summarizes the code's functionality but also breaks down individual operations into easier-to-understand segments.

AI in Frontend Automation – Translations and Error Detection

Every frontend developer knows that programming isn’t just about creatively building interfaces—it also involves many repetitive, tedious tasks. One of these is implementing translations for multilingual applications (i18n). Adding translations for each key in JSON files and then verifying them can be time-consuming and error-prone.

However, AI can significantly speed up this process. Using ChatGPT, DeepSeek, or Claude allows for automatic generation of translations for the user interface, as well as detecting linguistic and stylistic errors.

Example:

We have a translation file in JSON format:

{
  "welcome_message": "Welcome to our application!",
  "logout_button": "Log out",
  "error_message": "Something went wrong. Please try again later."
}

AI can automatically generate its Polish version:

{
  "welcome_message": "Witaj w naszej aplikacji!",
  "logout_button": "Wyloguj się",
  "error_message": "Coś poszło nie tak. Spróbuj ponownie później."
}

Moreover, AI can detect spelling errors or inconsistencies in translations. For example, if one part of the application uses "Log out" and another says "Exit," AI can suggest unifying the terminology.

This type of automation not only saves time but also minimizes the risk of human errors. And this is just one example – AI also assists in generating documentation, writing tests, and optimizing performance, which we will discuss in upcoming articles.

Summary

Artificial intelligence is transforming the way frontend developers work daily. From generating components and refactoring code to detecting errors, automating testing, and documentation—AI significantly accelerates and streamlines the development process. Without these tools, we would lose a lot of valuable time, which we certainly want to avoid.

In the next parts of this series, we will cover topics such as:

Stay tuned to keep up with the latest insights!