Tokenisation approaches on blockchain: state-of-the-art and classification framework

Tokens released and sold on blockchains have drawn a lot of attention. Some say it is just a fad, others argue they will radically change many industries. While the truth is probably in the middle, we believe that in order to fully grasp the potential of tokens and to advance our knowledge about the phenomenon, it is necessary to understand multiple aspects of it, such as: what are tokens, what kind of tokens are there, how are they designed, and what new advances need to be done? In this paper, we aim to provide a first step in that direction. Specifically, we propose a classification framework that will allow us to analyse the existing tokenisation approaches and whose application can point us to relevant research directions. The practical implications of this work are threefold. Firstly, it will enable interested readers to understand the fundamentals of the tokenisation process and of tokens. Next, it will help with the comparison of existing tokenisation approaches and with the decision regarding the most appropriate process for a given use case. Finally, the framework could make the design of future tokenisation approaches easier.