What are CashTokens?
CashTokens are digital assets that can be created and used on the Bitcoin Cash network. Bitcoin Cash upgraded on May 15, 2023 to add token primitives directly in the consensus protocol. CashTokens can be issued by individuals, organizations, or decentralized applications. CashTokens inherit the same tamper-proof properties of Bitcoin Cash and are divided into two types: fungible and non-fungible.
Fungible tokens are indistinguishable from all other units. They can be merged or divided in transactions, making them suitable for representing exchangeable assets like stocks, bonds, stablecoins, and more. Fungible tokens play a vital role in decentralized applications by representing on-chain or off-chain assets and enabling complex coordination tasks.
Non-fungible tokens are unique and cannot be merged or divided. They serve as authenticated messages belonging to a specific token category issued by an entity. Non-fungible tokens allow contracts to attest to a commitment in an impersonation-proof manner and facilitate the interaction between different contracts, enabling the development of advanced decentralized applications on the Bitcoin Cash network.
CashTokens enable increased smart contract functionality on Bitcoin Cash. While the CashTokens ecosystem is in its infancy, it can be as powerful as the most popular smart contract blockchains. And with Bitcoin Cash's UTXO design and dedication to on-chain scaling, the smart contract ecosystem on Bitcoin Cash has the potential to scale 1000x more than EVM chains. Such a system would ensure high usability, even in times of high network demand.
For users or developers with questions about CashTokens, the CashTokens Telegram Channel is a great place for discussion.