Tokens, Types, and Standards: Identification and Utilization in Ethereum
Monika di Angelo, Gernot Salzer
Abstract
Tokens are often referred to as the killer application of blockchains and cryptocurrencies. Some even believe that basically everything can be tokenized, meaning that it can be represented by a tradable digital token. With decentralized P2P networks that hold and distribute the tokens, one can build various decentralized applications around them. As a digital asset on top of a cryptocurrency, crypto tokens are managed by a smart contract, most commonly on Ethereum. A widespread high-level categorization of tokens distinguishes between payment tokens, security tokens, and utility tokens. The need for clarifying the differences lies in the fact that in most jurisdictions, security tokens are more heavily regulated than other tokens. In this work, we contribute to the detection and classification of crypto tokens from bytecode. First, we examine how ideas on regulation are currently incorporated into respective standards. Then, we discuss methods for identifying deployed token contracts from bytecode. Furthermore, we analyze deployed contracts regarding the standards to which they comply, and the type of token they may represent. Moreover, we investigate the actual usage of tokens. Our empirical analysis uses the transaction data from the Ethereum main chain up to block 8750000, mined on Oct 16, 2019.