Debt is a certain amount of money loaned for a specific time at a designated interest rate. Debt securities include real estate mortgages and corporate bonds that pay dividends. Debt tokens are the digital representation of debt instruments on the blockchain, called the collateralized debt obligation (CDO).
Most people know blockchain as the technology behind Bitcoin, Ethereum, Litecoin and other popular cryptocurrencies, but there is much more to the blockchain revolution. In fact, many experts predict that the transformative power of the blockchain will be far more important, and much more long-lasting, than the virtual coins it originally enabled.
To understand the transformative power of the blockchain and why it is already disrupting entire industries, it helps to know what the technology is and how it works. Explaining the technical details of the blockchain would take many pages, but in simple terms, blockchain is a type of ledger, one that holds a permanent record of every transaction.
If you have been on the Bitcoin bandwagon for years, you are probably very happy with your decision. When this virtual currency first hit the market, its value was expressed in mere pennies. Less than a decade later, the price of a single Bitcoin was nearing $20,000.
Even though the price of Bitcoin has settled down from those stratospheric highs, there is still a great deal of optimism in the cryptocurrency community. Bitcoin, Ethereum, Litecoin and the like still have their fans, and they point to the enormous returns these virtual currencies have produced over the years.
