hello everyone and I hope that you are doing well and you are motivated I am doing another homework for the steam  cripto Academy and thank you so much to the professor for the lecture it was quite informative and I will try my best to complete the task OK I will try to keep it simple in my own words as the professor said so let's begin

 

Tokens

Before getting into the task let me give you a little bit information about tokens what is tokens 

Token is basically the representation of a utility or asset Which is running on a blockchainYou can use tokens for everything for example commodities Cryptocurrencies and even loyalty points And the best part about tokens is that it is very easy to create token you don't need to modify any code And you don't need  to create any blockchain from the start or  scratch It is very easy to create a token to create a token you have to follow a standard  template Based on the blockchain 

The most famous blockchain for creating token is ethereum blockchain Because they allow you to create your own tokensThe process to create token is through The use of Smart contracts 

Security tokens

 OK will keep it simple security tokens are simply the representation of An underlying security Securities are Almost everything that you can  invest in That you would have an expectation of profit Well for example shares  Bonds and  real estate Admittedly  the definition of security is A little bit Nuance then that But this is a kind of simple explanation of it I will give you a simple example of a security token really easy suppose there is a company And that company has 100 shares Know the ceo  of the company can  Decide to tokenize all the shares And then they can issue security tokens which will represent the shares in the company Sonal understand easily should I will be one security token for 1 share you can trade the Security  token instead of trading  shares 

Advantages of security token

The first thing that I believe is that there is more Legal complaint Access for Crowdfunding for investors And I think that is a very good benefit of the security token

It's less risk for everyone because Because the  laws  force these Companies to have transparency Offer equity ownership And all the other things

Will all the security tokens can be back by real-world   facets Which make it easy to assess the real value of  them 

Will the best point that I like is that you can also trade Unique assets like Real estate for example and many other things

Example of a security token

Tzero

This is a new company and I would  say that they are bringing a revolution  for the financial market They are trying to democratise the capital Levelling The playing field   to between the  retail investors and smart money For example Hedge funds And because it is on blockchain there is no more Secrecy Everything is transparent everything is visible It's a one way market No  shorting 

Tzero  vision and the problem that they are trying to solve

There trying to solve the issue of liquidity in the private market Which is a really large market They are doing this by the tokenization of  This  liquid assets  The second problem is that 1 in all platform So you have this new assets Like cryptocurrencies and these tokenized private assets Do you have the traditional stocks like Samsung and Apple 

market detail

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Utility token

I will try to keep it as simple as possible  Utility token you can think of it as for example Utility at your home Utility ate your home are essential for you to use The features of your house You can't  use your toilet if you don't have water So that is utility Now I'll give your second example and that is if you don't have electricity in your house you can not use any lights AP electricity is not coming to your house through service that is a utility And you pay for those they are  essential Now think about the same concept An essential tool to use application That is   Utility token in Crypto project

Utility token is Doesn't that represent share of a company But rather it is an essential tool Aur an essential method by which You use the application 

Nexo 

 I will keep this one simple for you so they offer cryptocurrency interest account Where you can earn Maximum of 12% With no minimum deposit  Now you can deposit and make interest on any of the big cryptocurrency there are some big names in the market for example Bitcoin and  litecoin And that's not just IT you can make interest on some Fiat currencies as well for example ll Euros and Great British Pound Which gets the same rate as stablecoins 

Interest are paid daily and there are no fees on withdrawal or most transactions Devar award system that determine your apy And it is very simple to be honest let me tell you how At the base rate you get 8% on stablecoins like usdt and tether and you get 5% on the cryptocurrencies Bitcoin and it idiom 

market detail

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Let's talk about the  equity token so this is like similar to the security token is just a little bit of difference in  to equity token gives you the right of ownership Now tokenizing your shares give you the ability to hold your share and tokens  on the decentraleyes blockchain Well up to my understanding this is the easy way to explain this token because all of these tokens are in a similar as there are tokens there come from the same family in a way   now I will give you an example And you will get more information about the token in that  it will be more easier for you to understand with an example 

Binance Stock Tokens

Now you will be able to understand the 

 binance one of the biggest cryptocurrency exchange has recently announce their stock tokens 

Now let's understand what is stock tokens Now these are the kind of tokens which are backed by  assets like shares real life shares And they represent share So now they both are connected with each other asset and token so if the share is going up the token will also move Now with the help of our stock token you can a certain percentage of that stock 

Binance has announced stocks of a company name Tesla the stock is is running around $700 these days now you don't need to buy the whole stock you can buy a certain percentage of that stock with the help of tokens No the officials from the binance said that they won't charge anyone with any sort of fee for transaction

Conclusion 

Well after doing all my research I believe that there is a very good future for the stock tokens which is is equity tokens because just one week ago binance has jumped into the market  with the stock tokens right thing it can go very high and I believe this is the future 

And the second thing is that I really like the idea of security token and one or two years ago they are going very high but nowadays people don't look at security tokens with a really good I so I am a little confused about that if they will have a good future or not

 andI believe that the market is expanding with the very high speed many new kind of things are coming and who knows maybe there will be some other type of tokens in future

 I have learnt so many things while doing this research I spend two days on just making this one homework but I believe that I have learnt many things

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THANK YOU FOR LEATURE

@pelon53