Hello Ethereum :)!, my name is Leonel, I'm from Mexico and I'm really interested on using ethereum, I have read a few articles in ethereum.org but I just can't understand how the ether coin can be anything, I mean how I assure to other people that my token value is 2 bars of gold or some physical asset?
@leodc: If you issue tokens, they only have the value that your reputation gives them.
@leodc: So if you want to assure people that your tokens are backed by gold, then you have to provide enough proof to convince people that you actually own the gold, and that you're trustworthy enough for them to redeem their tokens for gold.
https://dgx.io/ is an example of a company that does this for real gold: you can look at how they do it.
They have regularly-scheduled independent audits by trusted financial auditors of all their physical gold, and so on.
There's a whole process to it: they do a lot of work to establish their trust.
Hello @alexvandesande and @pjdelport , ok i get it know, the token is the digital representation of the asset and the link between the token and their physical value is up to me. Thank you for the responses ! and sorry for my bad english :P!
The token represents a cryptographic proof that it was actually uniquely issued by the issuer, and not someone else.
So it assures you that you're not holding a false token from some impersonator.
But the issuer is a separate link to the real world.
They can give the token any meaning, or no meaning at all.
So someone can give you a token and claim that you can redeem it for a hug, but then that's all it's worth. :)
Or they can tell you it's worth a bar of gold without actually having gold, but you'd be a fool to trust them without independent verification that they actually own the gold, and are trustworthy enough to redeem it for the token.
Another example of how the issuer can decide any arbitrary meaning for a token is a lottery.
Instead of each token being worth a set amount, the issuer can issue say a thousand tokens, and say that at a given time, one random token will be redeemable for some reward (and the other tokens will be worth nothing).
So before the prize, you might want to obtain as many tokens as possible, to increase your chances, or even sell the tokens for high values, depending on demand by others.
But after the prize is claimed, the tokens become worthless, and no one will want them.
So the value of a token can be based on time and conditions too.
(Again, you have to trust the issuer to actually give out the prize.)