Beginner Course I Crypto Academy Season 3/Week8 - Homework Task : Understanding Tokens
DEFINING TOKENS
Token | Blockchain platform |
---|---|
DIA, Aragon,The sandbox Chromia | Ethereum |
Chain link, Ox, Polkastarter | Polkadot |
Pancakeswap, Ankr, Bakerytoken | Binance Chain |
Convex CRV, Oracle Top 5 | Asset Backed Coin |
From my research according the provided data it is simulated that the Cryptocurrency tokens are relatively easy to handle and purchase and they also provide valuable assets to theconsumers.
DIFFERENCE BETWEEN A TOKEN AND COIN:
Source
It is obvious for a normal person who deals in Cryptocurrency that how one can differ a token from the coin. There are major differences which sometimes are ignored by the relative new users. Here is a brief account of the main differences:
Coins are defined by its protocol. It is based on a specific blockchain. It is a digital asset which cannot be tracked easily. There are no as such complex functions related to the coins except for storing and trading as a form of digital currency. They can be easily stored in a wallet and can be used according to the needs. Most popular examples of coins include Bitcoin, Ethereum etc.
As far as tokens are concerned, tokens are defined as a digital asset which built from the existing blockchains in the market. They can do specific functions such as selling virtual real estate, super computer platforms etc. They can also be stored and traded much like that of a crypto coin.
CATEGORIES OF TOKENS
Utility Tokens
Utility tokens can easily give a platform for the investors to invest and make a profit from the concerning blockchain. It is a major challenge of using a whole blockchain built on a specific coin. So for the easiness, utility coins are purchased and used by the customers.
Features of Utility Tokens
- Easy to handle i.e. by using Dapps
- Different business functions are unlocked
- Most of the tokens are utility tokes present in a block chain.
- Major utility tokens are: ERC 20, ERC 223 AND ERC 721 etc.
Equity Tokens
Equity tokens find its applications in real estate businesses because it enables us to find the exact percentage of one’s investment in the business. Investors can easily manipulate and distribute their funds without any concern.
Features of Equity Tokens
- Used to calculate ownership percentile& Comes in various forms like stocks, futures and tokenized real estate etc.
- Multiple investment can be made with lesscapital
- Major tokens include Neufund, The Elephant Private Equity Coin, BFToken and The DAO etc.
Security Tokens
Security tokens give the customers profit but they don’t give ownership rights. There are different forms of security tokens including Digital mutual fund, Digital ETFs and Non-Equity investment against capitals.
Features of Security Tokens
- Security token protocols are beneficial such as - ERC-1400/ ERC-1404. Number of security token platforms are present
- Sia Funds is a security token
Non-Fungible Token (NFT)
NFTs are in self are very unique type of tokens which can’t be shared and copied easily. NFTs also represent an asset ownership rights. Owners can easily deal in the market using the NFTs.It is considered as a digital asset which is used to represent many real world assets like videos, music and art etc.
Features of NFTs
- Easy to obtain profit
- Can be liquefied easily]
- NFTs create digital scarcity
- Some NFTs are Theta, Axie Infinity, Chiliz and Ringers etc.
ARAGON (ANT) TOKEN
ARAGON (ANT) is an interdependent platform which is built on the Ethereum blockchain platform. By using the blockchain technology, ARAGON aims to decentralize the production and maintenance of different kinds of organizational structures. Creation of Decentralized Autonomous Organizations (DAO) on the Ethereum blockchain enables this token to be successful.
DAO software is working on the blockchain and allows its users to interact with a built-in mechanism for collectively managing its code. Aragon network software operates in three categories which are:
- Aragon Client
- Aragon Network
- Aragon Association
ANT provides a platform for the organizers to develop online organizations that support the participation of every investor linked with it. AN association tries to raise the funds which are generally available due to the sale of Aragon tokens respectively.
HOW ARAGON NETWORK WORKS
There are many features enabled by DAO which helps in the overall working of the ANT. First of all, Aragon OS is generally used which enables the investors to create a small contract framework.
Features of Aragon DAO include finance, tokens and voting. Here we are only focusing on the tokens category. ANT tokens enable us to purchase and holds a digital asset which is used for the maintenance, membership and structure controlling within DAO. Developers may also incorporate the Agent app into their DAO, allowing organizations to communicate directly with Ether consensus mechanism.
MAIN FEATURES OF THE TOKEN
ANT holder maintains a free level of governance. It can leverage the Ethereum Blockchain ANT is successful due to its decentralized court solution and an upgraded system.Capital system for issuing and controlling tokens.Self funding through aggregation network and transaction fees
FUNDAMENTAL OPERATION AND MODIFIABLE CAPABILITIES
One of the main advantages of using DAO system of ANT is that it provides its consumers to fix the code breaches and solve the disputes that arise in the Aragon framework. Modules are generally presented by the Aragon for the purpose of ownership, voting, payment and capital etc. Main compatibility of using DAO is that it offers administrative control to the investors. It is fully customizable by the general authorities.
THE ANT TOKEN
In pursue of the governance model, ANT token is a crucial involvement in the whole project. It has strengthened its space by holding up the platform from the past few years. It was initially sold up to $24M in 2017.
USE CASES OF ARAGON (ANT)
Some specific use cases include:
- A political campaign voting mechanism that uses a small scale prediction market model to guarantee politicians follow through on campaign pledges.
- An accounting module that may be tweaked and offers extensive info graphics.
- A client billing module in which clients are rewarded depending on benchmarks or any other metrics specified by the user.
- Aragon Network Jurisdiction (ANJ), which provide ANT holders to vote on basic rules
CONCLUSION
In cryptocurrency world, tokens have their respective importance. We cannot deny the fact that the crypto tokens are as much important as the coins because of their speciality of building over the other block chains. Different categories of tokens have wide applications in their respective fields from utility to security tokens. NFT also plays its specific role. Aragon OS enables the investors ti decentralize the autonomous behavior of the disturbances in the operating system. DAO offers the control of the ANT token and breaches that could occur in the digital systems. Cryptocurrency has taken over the digital market and due to its enormous blockchain system; people can easily in coins as well as in the tokens. In this way, marginal profit can be obtained in a limited amount of time.
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