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:


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:


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


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


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 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.


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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What is Account Abstraction?


10 Nov 2023
What is Account Abstraction?

Account abstraction is a new way of thinking about how users interact with blockchains. Instead of using traditional externally owned accounts (EOAs), account abstraction allows users to create and manage their accounts using smart contracts. This has a number of potential benefits, including improved security, enhanced privacy, and increased flexibility.

What is account abstraction?

Account abstraction is a concept that, at its core, aims to simplify the user's interaction with blockchain networks. It is a transformative approach that seeks to mask the technicalities of blockchain operations from end-users. It is making transactions as straightforward as sending an email. Account Abstr. allows users to interact with the blockchain without worrying about the underlying technical details.

How does account abstraction differ from the traditional model?

In the traditional account model, each user has an EOA. EOAs are controlled by private keys, which must be kept secret in order to protect the user's funds. Acc. abstraction allows users to create and manage their accounts using smart contracts.

Historical Context

The journey towards acc. abstraction began with the first generation of blockchain technologies, characterized by their "one-size-fits-all" approach to account management. Bitcoin, for instance, introduced the concept of accounts and transactions in a form that was accessible to tech-savvy individuals but remained perplexing to the layperson. Ethereum expanded on this by introducing smart contracts, which opened the door to programmable transactions but did not alter the fundamental account structure. The idea of acc. abstraction has been discussed in the Ethereum community for several years as a part of various Ethereum Improvement Proposals (EIPs), particularly as a feature to be potentially implemented in Ethereum 2.0. It is a direct response to the need for a more versatile and user-centric design that can cater to a broader audience and spur the widespread adoption of blockchain technology.

The Technicalities of Account Abstraction

Account abstraction is not merely a theoretical construct but a technical innovation with specific mechanisms underpinning its operation. In essence, it alters the way transactions are initiated and executed within a blockchain network.

How Account Abstraction Works

Under traditional blockchain models, initiating a transaction involves an externally owned account (EOA) signing a transaction with a private key. This transaction is then broadcast to the network for validation and inclusion in the blockchain. Account abstraction, however, replaces this process with a more flexible one. Here, every account is a smart contract, and transactions are messages sent through these contracts. These smart contracts can encode complex rules for transaction validation, beyond what EOAs can do, such as multi-signature requirements or conditional transactions based on certain triggers.

The technical crux of account abstraction lies in the smart contract’s ability to define its own conditions for transaction execution. This means that user accounts can have unique security protocols or automated operations without the user needing to understand the underlying smart contract code.

Hey! Are you interested in the latest technologies in the blockchain area? be sure to read the article 'Top Zero-Knowledge Proof Projects to watch in 2023'

The Benefits of Account Abstraction

The implications of account abstraction are profound, offering a range of benefits that can enhance the blockchain experience for users and developers alike.

Improved User Experience

One of the most significant advantages of account abstraction is the improvement it brings to user experience. By abstracting away the complexities of key management and transaction rules, it presents a more intuitive interface for users.

Enhanced Security Features

Account abstraction also allows for the implementation of advanced security measures. Since each account can define its own logic, users can tailor their security settings to their specific needs. For instance, one might set up an account that requires additional verification for transactions exceeding a certain value or restricts withdrawals to certain addresses.

Future Implications

The future implications of account abstraction are vast. As the technology matures, it could become a standard feature of blockchain networks, potentially making the current distinction between user accounts and smart contracts obsolete. This could lead to a new wave of blockchain applications that are both powerful and accessible, bringing us closer to the vision of blockchain technology as a seamless part of everyday life.

Challenges and Considerations

Technical Limitations

One of the primary technical challenges of Acc. abstraction lies in its integration with existing blockchain protocols. Current networks are optimized for the EOA model, and introducing a new account structure necessitates significant changes to the core protocol. This includes modifications to the way transactions are propagated in the network, how gas fees are calculated, and how the state of the blockchain is managed. Ensuring that these changes do not compromise the network's performance or security requires careful planning and extensive testing.

Compatibility with Current Systems

Another consideration is the compatibility of account abstr. with the vast ecosystem of existing blockchain applications and services. Wallets, exchanges, and other services have been built around the traditional account model. Transitioning to an acc. abstraction model will require these services to update their infrastructure, which may be a complex and resource-intensive process. Furthermore, there is a need for standardization across the industry to ensure that different implementations of account abstr. can work seamlessly together.


Acc. abstraction represents a significant leap forward in the quest for a more user-friendly blockchain experience. By streamlining the transaction process and offering enhanced security features, acc abstraction has the potential to make blockchain technology more accessible to a broader audience. However, the path to widespread adoption is not without its obstacles. Technical challenges and compatibility issues must be carefully navigated to integrate it into the existing blockchain landscape.

Key Takeaways

How to Add Gnosis Chain to MetaMask: A Simple Tutorial


03 Nov 2023
How to Add Gnosis Chain to MetaMask: A Simple Tutorial

As the cryptocurrency ecosystem expands, there is an increasing need for various blockchains with distinct capabilities. Gnosis Chain enters the scene, offering a selection of unique characteristics. By integrating Gnosis Chain with MetaMask, users can access a more comprehensive array of decentralized services. We will walk you through the steps to add Gnosis Chain to your MetaMask wallet in this tutorial.


Setting up MetaMask

Before exploring the integration of Gnosis Chain, it is crucial to have MetaMask installed and operational:

  • Download and Install: If you have not done so already, visit the official website to download and install the MetaMask browser extension.
  • Setup Account: After completing the installation, create your account and make sure to remember the provided seed phrase. This phrase serves as your primary means for account recovery, so keep it secure.
  • Secure Your Account: Protecting your MetaMask account is of utmost importance. Use a robust password and never disclose your seed phrase to anyone.

Gnosis Chain

It is always helpful to have a basic understanding before incorporating any new blockchain into your wallet:

  • Gnosis Chain Overview: Gnosis Chain, a rising star in the blockchain world, brings a range of decentralized solutions to the table, such as prediction markets and decentralized trading platforms.
  • Benefits & Features: Among Gnosis Chain's main selling points are its accelerated transaction speeds and potentially lower fees when compared to congested networks.

Tutorial: How to Add Gnosis Chain to MetaMask

In the top right-hand corner of your browser, you'll find the wallet. If pinned, click on the MetaMask fox icon; if not, click the three dots in the top-right corner. The following screen will appear:

An option to expand the wallet to a new browser page is available by clicking "Expand view:"

This action will launch MetaMask in a new tab:

By clicking on the ‘Ethereum mainnet’ in the top left corner, you can add another network. Click ‘Add Network’

Choose option ‘Add a network manually’

Then, input the information below:

Network Name: Gnosis Chain formerly xDai


ChainID: 100

Symbol: XDAI

Block Explorer URL:

After saving the settings, Gnosis Chain will be added to your network.

The Benefits of Adding Gnosis Chain to MetaMask

With multiple blockchains becoming more common, integrating Gnosis Chain with MetaMask offers numerous advantages:

Expanded Capabilities: Accessing Gnosis Chain through MetaMask opens up a collection of exclusive applications and features inherent to this particular blockchain, which may include unique dapps or cutting-edge financial products.

Diversification: The crypto domain is extensive and constantly growing. By incorporating various chains like Gnosis into MetaMask, you broaden your potential investment opportunities and decentralized application experiences, ensuring no opportunities are missed.

Speed & Cost-Effectiveness: Network congestion and high gas fees on established platforms like Ethereum can discourage many users. Gnosis Chain's architecture has the potential to provide relief through quicker transaction times and more affordable fees.

In summary, as the possibilities within the crypto sphere continue to evolve, tools like MetaMask grant users access to this expanding world. By adding chains like Gnosis, users can stay ahead in this decentralized revolution.


By bridging platforms like Gnosis Chain with accessible tools like MetaMask, individuals not only amplify their engagement with decentralized applications but also fortify their position in this expansive realm. The integration of Gnosis Chain to MetaMask epitomizes the evolution of the crypto landscape – a testament to its ever-growing diversity and potential. As we continue to delve deeper into the decentralized future, tools and integrations like these will undoubtedly play a pivotal role in shaping our digital experiences and opportunities. Whether you're seeking more efficient transactions, diverse dapp interactions, or simply a broader understanding of the crypto ecosystem, this guide's steps open doors to a new horizon.