Crypto Academy Week 10 - Homework Post for [@pelon53] // TOKENS
Hello @pelon53
First and foremost, please accept my congratulations on your appointment as a new crypto-academy professor, and please accept my heartfelt gratitude for broadening our understanding of Tokens in the Blockchain industry.
Before I go any further, let me explain in my own words how I understood your Token lesson.
![download.jpg](https://steemitimages.com/640x0/https://cdn.steemitimages.com/DQmRYECUMRV4u8h4JphsUTxmD6jJkjaVWLYdaX2ki2m5mEM/download.jpg)
This is a form of money that represents something unique in a specific ecosystem, such as value, stake, or voting rights. Tokens exist and can only be used on one platform, which is its ecosystem.
Some features of tokens:
Token owners benefit greatly i terms of right within the ecosystem in which the token is used.
Tokens can also be exchanged between buyers and sellers, improving the internal economy of the ecosystem in which they are used.
Tokens can also be used as a type of ticket to gain access to certain functions within the ecosystem.
Now, based on Prof. @pelon53's questions, I'll begin by explaining how the questions are structured repectively
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This is the token that must be processed before an individual can gain access to a system, whether on blockchain or any database systems.
Security tokens can be physical devices that store the owner's personal information and help authenticate the token owner's identity,In most companies, employees must enter a username and password to gain access to certain company files. Security Tokens help provide advanced protection for both the employee's identity and the company's information.
This token can be found in a variety of forms, including:
Chips
USB
Wireless
Electronic keys that can be programmed
The emergence of black hacking of company and individual accounts has prompted the need for a more precise security system.
To gain access to the system owners, insert the physical token into the system for authentication, and the digital token will require typing the token's unique code and the generated user name from the token memory.
Cryptography is used by companies that issue Security tokens to investors during STOs, so the investor will need the token's cryptography to be able to access their investments,Security Tokens are designed in such a way that during login, the system sends a message to the token owner's phone containing a unique code that must be entered before the user can login; otherwise, access will be denied.
Security Tokens can be :
- connected token where the user must connect the token to the system
- disconnected where the token owner has access by using a remote
- contactless where Bluetooth or another wireless system is used.
Security Tokens are a very good and advanced way to protect a system. If you have a physical security Token and it goes missing or stolen, no one will be able to access the system if you have set up 2 –factor authentication. If the system is biometric, it may require facial and fingerprint recognition,Security Tokens, on the other hand, can be hacked when black hackers gain access to the owner's sensitive information.
EXAMPLE OF SECURITY TOKEN:
Bcap was discovered in the year 2013 and is regarded as the first Security Token Offering. Security Token Offering (STO) occurred in 2017, and they actually set a record during STO, raising $10 million within 6 hours of the STO,They exchanged their first token for cryptocurrencies, and the STO was intended to trade some blockchain virtual ledgers to raise capital.
The Bcap STO was actually given to only investors, who received a portion of all profits earned by the company based on the value of the security tokens they held, while platform users were charged fees based on the token Bcap is managing.
Holding an STO Tokens are more secure than ICOs because they contain personal information and are governed by regulations.
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This token is typically offered to investors at an ICO in order to raise capital for a specific project. The token functions as a coupon for the investor, which can be used to provide goods and services in the future,Tokens are purchased using cryptocurrencies or FIAT.
Due to the total legal regulations involved in Security Tokens, companies now prefer to offer Unique Tokens during ICOs rather than Security Tokens.
After the ICO, the owner of the token has the opportunity to enjoy some functionality of the ecosystem where the token is used. Owners of the token do not receive dividends, shares, or profits from the company, but they do stand to benefit from all services offered by the company based on the value of their token.
In layman's terms, companies do crowdfunding by issuing Utility Tokens to investors and then offering them services in the future if they remain strong.
Example of Utility Token:
Funfair is a blockchain that specializes in casino games; this token was created to address current casino game issues such as transparency and player protection,Funfair is an Ethereum ERC-20 token that anyone can own, with all transactions recorded on the blockchain.
In June of 2017, only 11 billion Funfair Tokens were created. During the ICO, the company held approximately 2.3 billion Funfair Tokens and later released them 18 months later, raising approximately $20 million by selling 1 Funfair Token at 0.0007, the tokens are stored on an Ethereum wallet.
All Funfair holders have access to the goods and services listed on bitcoinwiki.com in the following games:
"Wheel of Fun: Playground
Fate of Thrones
Treasures from the crypto
BlackJack
Baccarat
Three card poker
Let it Ride poker
Caribbean stud
European roulette
Video Poker
FunDice
![equity-token.jpg](https://steemitimages.com/640x0/https://cdn.steemitimages.com/DQmfB6S1HLEYW99wFwJHhUGApo2BBTkz1dpk4MMaEBLwzY3/equity-token.jpg)
We can clearly understand how Equity Tokens work from the word Equity, which means to have an equal of something.
Equity Tokens are a type of token that acts as an equity certificate on blockchains,companies issue equity tokens to investors in order for them to have certain rights in the company.
This token is offered during Equity Token Offerings (ETOs) to raise capital to support the company's project. This token is mostly used by companies that sell physical products and services,buyers of the token have voting rights, dividend rights, subscription rights, and appraisal rights.
So, in essence, this equity offers a buyer some shares of the company selling it, and they can choose to sell to others or hold it and sell when the company's value rises.
the below is how token are issued explain by academy.bit2me.com
"First register on an exchange platform. This step will allow the company to issue its equity token and record all of its information.
Declare commercial provisions. Like all investment platforms, an ETO cannot be carried out without first defining the commercial terms. This means that the blockchain company must inform potential investors about the investment terms and provisions.
Perform a pre-ETO. These campaigns are designed to offer a certain amount of token privately. Their objective is to recognize the impact that ETO has. If the private sale reaches the desired level, this activity will suffice, otherwise, the public sale is finally carried out.
Public offers. This offer is only necessary when the collection goal was not reached in the private offer. At that point, the general public, like companies and individual investors, can buy the rest of the tokens. After this, a binding agreement is signed between the parties, whereby investors become legally recognized owners of the acquired tokens.
Example of Equity Token:
The DAO was launched in April 2016 with a full month of Token sales, raising approximately $150 million during its first sale. This Token was developed to combat the corruption of human errors that cause problems with money invested by investors to make the system fully automated and secure.
According to the white paper, the DAO is here to make investors send money from anywhere in the world, and the sender will be given a token that gives them voting power on the DAO projects.
Hola @alhajibabajnr
Gracias por participar en la Academia Cripto de Steemit.
Buen trabajo, gracias por tu esfuerzo.
¡Éxitos en tu próxima tarea!
thank you so much