> We're now capable, thanks to these consensus systems, of creating tokens that have certain properties. For instance Bitcoin is a specific kind of token which

> We're now capable, thanks to these consensus systems, of creating tokens that have certain properties. For instance Bitcoin is a specific kind of token which is scarce - hence will work more like gold. Other tokens (perhaps Ether or Dogecoin) instead are not scarce at all, and new tokens continue entering the system all the time. You talk as if we were never able of issuing digital tokens before. All you need is a MySQL database and Apache. World of warcraft has tokens, Counterstrike has tokens (skins), Airmiles has tokens, Microsoft has tokens. Tokens are not new. Having them on the blockchain is new. And what does that give you? censorship resistance. This is the first time that these tokens can be issued and traded with very little regulatory oversight. This is because in theory, anyone can be a transaction validator, and in theory you can have pretty good privacy on the blockchain. However, existing financial instruments (and tokens) will always be more efficient on a centralized platform, because it cuts through coordination and communication costs. But when you centralize, now you need to govern and report to authorities. So you cannot do transactions that are great for the blockchain: buying drugs, political donations, capital flight, funding activism, etc.