Hi! I hope you all are well and having a good. Today we are going to discuss the Security, Utility and Equity Token as well. Dear professor #pelon53 i attended you lecture about token. you method of expressing the details of topic is good. Your knowledge about token is up to the mark. I have learnt lot of things about token and hopefully it will be helpful for me in future. Lets start the work.

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What is Security Token?

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It is a type of portable device that store some sort of personal information of on it. Information may be about personal information of specific person. Information that is store on Security token is in the form of electronic signals. The purpose of security token is to authenticate the individual whose information is already stored on the security token. If owner wants to access the network, then he should insert his security token to the Plug that are placed on the security system. These security tokens are issue by Security Token Service (STS).

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Types of Security Tokens

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• Equity Tokens
• Debt Token
• Real Asset Token
• Hybrid Convertible Token
• Derivative Token

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Form of Security Tokens

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There are many types of Security Tokens available in market. It may be hardware ships or token chips. It may be available in form of USB and Wireless Bluetooth. We can operate them form distance.

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Uses and Examples of Security Tokens.

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1. Security Token Mostly used on the Those places where security is highly recommended. Place where security is highly concern such as Bank. Person use Security Token to access the or enter the system of bank. Instead of tokens there is an additional security that is password that authenticate the Owner Identity.
2. It is also use to store some store crypto key that are used in Crypto services such as Ethereum, Bitcoin and XRP. These keys are stored in secret box, only authorizes authority can access to the secret values.
3. It is also used on top security departments like intelligence or nuclear weapons. Codes of These secret Codes are continuously changed with the nano second of intervals. Fingerprint security and biometric security helps the Security token to protect the unauthorized users.

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Weaknesses of Security Tokens

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Like other system Security token system is not a foolproof system. It has many flaws. If the owner lost his security token by any mishap, then, he will not able to access the services. Security Token is not full secure it can be hacked. It can be hacked by knowingly and unknowingly. Some time user itself give the correct information to the hacker. It is done by accidentally. Frauds takes place in this security tokens.

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What is Utility Token?

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Utility Token is types of digital asset that is provided to the user and buyer. It gives to the buyer for the sake of consuming the products of network. It simply means that it provides to the user for enable the consumption of network product. Utility token and Security token are not taking over the ownership rights to any other company of user. In this context of token, we should not the mixed the concept of token with crypto coins. Utility tokens are based on the Third party blockchain. Its values totally dependent on its inherent properties.

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How Utility Token Implemented?

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• The organization Initial Coin Offering mostly used the utility tokens. They issued many of utility token to several companies or communities while performing. Different token is sold on different prices. The owner who gets the utility token has right to access the products of company. In this way companies are able to adopt funding without losing the independence.
• Utility Tokens sometimes are not used by Initial Coin offering. If the companies that based on blockchain decides to get funding by some other ways, in this time in this time security token are only used for the enhancing the power of the network. It acts like a native currency.
  If we talk about utility token, most the utility tokens are based on Ethereum blockchain. However, we can possibly make a unique utility token with other lot of blockchains platform.
• The Important thing is that there is no legal distinction between Security tokens and Utility token. The Framework of countries that are responsible for making the regulation about cryptocurrencies are not take into consideration.

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Uses and Examples of Utility Tokens

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Basic Attention Token (BAT)

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Basic Attention Token is Ethereum (ERC) standard based Token. In Brave Internet browser BAT is used for interaction It is also used for the advertisement of blockage and stuff like ads etc.

Timicoin Token (TMC)

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It is used to get access to the network for sake of getting the information of medical that is placed on it. It helps to transfer the data between peer-to-peer servers. By the way transfer data is requested data.

Sirin Labs Token (SRN)

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To get the initial funding for the company use Sirin labs token. The main purpose of this token is to buy first line company’s products. These products in includes Finney smartphones etc. Sirin Token is also used for transferring the funds within the network without taking any charges.

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Golem token

Golem token is best example of utility token. The participants in Golem network using token to give the personal computer power for shared remote computers like network of the project This is process is done via p2p network.

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Comparison of Security Token and Utility token

Security Token	Utility Token
It normally not pegged with any external or asset.	It is completely pegged with assets like bonds etc.
It is created under the blockchain of Ethereum and Tron.	It is created under the existing blockchain. It fulfills the SEC regulations.
Its duty is to increase the utilization on the platform.	It supports the legal ownership investment, contracts. It is verified with in the blockchain.
Its values do not compare with the any ranked company.	It values directly relate with company.
Currently it has access to utility protocols	It is also less secure. There is chance of scams due to insufficient regulations.
It has high possibility of scams due lack of regulations.	It supports asset ownership

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What is Equity Token?

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It is a token that represents the share of fundamental Company. In equity token, stock trader purchases the given percentage of enterprise. They are capable of place the vote on the future profit of the company. Recording the ownership is the only difference between equity token and traditional stock. Equity token ownership can be divided into various classes. Overall shares of equity in a company have not classified and referred as stock of company. It splits the profit of company in to equally voting power. Every single token retains and hold the one percent of profit. In this way Ten votes would retain and holds the ten percent of the given percentage.

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Examples Equity Token

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If 100 of token releases by the company, and every token retains and hold the 1 percent earning out of 100 percent votes. In the same 10 tokens would retain the and holds the 10 percent earnings out of 10 votes and so on. Class A holds the equity token they retain the 10 votes on every token. While class b could hold 5 votes share and so on.

Thank You Professor @pelon53 for Giving us lecture about Token

Written By:
@abdulsabor