Hello guys, it's another week of the Steemit Crypto academy, and I am here to write my submission to the homework task given by professor @pelon53 on the topic Tokens

TOKENS

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A token is a digital currency/coin that is found on a blockchain and can be used to represent an asset or a product. Tokens can be built on different blockchains and they are dependent on the blockchain. An example of a token that exist on different blockchains is the USDT. Also tokens are very different from cryptocurrencies.
Tokens are firstly created from ICOs and then distributed into the various blockchains.
Below are some differences between tokens and cryptocurrencies.

1. One major difference between these two is that, tokens are built on already existing blockchains while cryptocurrencies have their own blockchains.
2. Tokens have a small range of usage but cryptocurrencies have a wide range of usage. This means that tokens can only be used in a small ecosystem but cryptocurrencies can be used world wide
3. The usage of tokens are specific but cryptocurrencies can be used to purchase variety of goods.

SECURITY TOKEN.

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These are a special type of tokens that are usually tied with financial assets such as shares of a company. These tokens may contain personal information of the user which allows him/her access to the asset that particular token represents. What this means is that, you can buy shares of a company with just buying a security token, and this token will serve as document that contains contract of the transaction in purchasing the shares.
Security tokens have come to bring about a lot of benefits in many businesses. Some of the importance of security tokens is that, it provides transparency in a business or investment. Another importance of security tokens is that, it serves as an insurance card for the owner since there cannot be any form of cheating.
With all the good a security can bring, it has its own flaws. Some of which are; the token is prone to hacks since anything connected to the internet world is vulnerable. Another thing that may be of disadvantage is that, in case one loses his/her security token, it may be of a huge loss. Unless of course there are steps in place to render the token useless when it falls into the wrong hands.
Some examples of security tokens are; Polymath, swarm, Harbor etc.

POLYMATH

Screenshot from Coinmarketcap app

Polymath is an Ethereum based decentralized platform that uses the security token Poly token. It was founded in 2017 by certain individuals named Chris Housser and Trever Koverko and then built on the Ethereum blockchain. With the use of Security Token Offerings (STO), they are able to create a safe and secure platform for tokenized assets to be traded on the platform. A Poly token gives you access to a part or full asset.
Polymath have a new idea of creating a new platform for security tokens with its own blockchain and this platform could still go on with the Poly tokens.
Currently, 1 Poly token is worth $0.2940.

UTILITY TOKEN

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This is a type of token that is usually used in financing upcoming projects especially ICOs. That is to say, acquiring a utility token can later be used to pay for services from the upcoming project. This means that when someone buys a utility token (usually bought with cryptocurrencies and other fiat currencies) the upcoming projects uses the capital raised from the buyer to get the project going and this serves as a starting capital. When the project becomes a success, the owner of the utility token can then use it to purchase from the project.
There are some different types of utility tokens, some of which are; BAT token, fans token and VLM token.

BAT

Screenshot from coinmarketcap app

The BAT token stands for Basic Attention Token. It is an ERC-20 utility type of token which is used to pay content creators and entertainers. The brain behind the BAT token was to create a safe space (blockchain) for content creators to earn from their work. The BAT Company also seeks to provide security from malware to their users and provide lesser ads. And the ads are also provided to their likening. Which means that a user will be able to only see ads that are relevant or tailored to that particular user.
The BAT token is currently valued at $1.078.

EQUITY TOKEN

This is a special type of token that gives an owner some kind of partnership percentage in profits made. This means that, owning an equity token makes you a share holder of a particular asset. There are different forms of equity tokens, some include; tokenized real estate, stocks and tokenized contracts. Equity tokens are issued by ETOs (Equity Token Offerings). Some examples of equity tokens include; The DAO Maker token, Media shower token, RRT token etc.

The DAO token

Screenshot from Coinmarketcap app

DOA represents Decentralized Autonomous Organization. And it is an organization that works on smart contracts to provide transparency and security between the parties involved. It is an Ethereum based decentralized platform for investors interested in stocks and tokens.
The DAO token is currently valued at $6.996 and a market cap of$138.873M.

Conclusion

This lecture has made me learn a lot and something new about tokens. I can say that, this lecture has been really useful and I have acquired some more knowledge with my research too.
Thank you professor @pelon53