Steemit Crypto Academy Season 3 Week 8 - Beginner's Course | Understanding Tokens by @chinto1

Greetings @reminiscence01 I'm here to present my homework post for this week.

1)What do you understand by Token and give an example of at least 5 tokens and identify the blockchain it is built on. ( give at least 3 different Blockchains)

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TOKENS

Tokens as in cryptocurrency, are the unique virtual currency that are created on an already existing blockchains, meaning they do not have their own blockchain.

Tokens are mostly used for investments reasons to make buy or save value in the blockchain ecosystem. Tokens are normally used to raise funds in crowdfunding developmental projects in the process of initial coin offering (ICOs) .

Below are some tokens and the blockchain they are build on.

TOKENS	BLOCKCHAIN
1. Uniswap	Ethereum blockchain.
2. Just token	Tron.
3. Dai	Ethereum blockchain.
4. Binance USD	Binance chain.
5. Tether	Ethereum blockchain.

2)What is the difference between a token and a coin?

Difference between token and coin

TOKENS	COIN
1. Tokens are easily created, they do not require complex programming.	1. coins are are difficult to create, they require complex algorithms and a higher level of technology to create.
2. Tokens are dependent cryptocurrencies which means that they, they depend on other blockchains and enjoy its technology example dai on the Ethereum blockchain.	2. coins are independent cryptocurrencies, they exist on their own. example Ethereum and bitcoin.
3. Tokens have less reputation in the cryptocurrency ecosystem	3. Coins have much more value in the cryptocurrency ecosystem.

3)Explain the different categories token listed below and explain its features.
Utility tokens
Security tokens
Equity tokens
Non-fungible token (NFT)

UTILITY TOKENS

Utility Tokens are unique type of token created to help users in financial aspects especially in startups business companies that want to raise capital for their developmental projects.
The boss brain behind the creation of Utility tokens is to raise funds for developmental projects by startup companies in the blockchain.
They have a good future exchange rate for products and services in companies.

SECURITY TOKENS

Security token is an electronic device that that is use to verify or authenticates personal identity by and store some personal information. The security token is connected to a system to make way for network services.

Before you can use security token services(STS), you will be sometimes ask to prove identify or ownership by entering a password. Security tokens are not all time secured it can hacked or lost and even stolen in some instance.

EQUITY TOKENS

Equity token, just like security tokens have traditional assets. Equity token users have prove of ownership in their crypto investment, it shows how much percentage of tokens each owner have.
Equity tokens is most useful in crowdfunding investments. they comes in variety of forms such as stocks, futures and tokenized real estates...etc.

NON-FUNGIBLE TOKEN (NFT)

Non-fungible tokens are digital unique art works of data in the blockchain which is non-replaceable, which means that they have some unique features which can not replace by something else, for example An essay, a domain name etc.

This tokens are represented in the digital ledger as painting, pictures videos and audios...etc. it also allow owners of assets to sell and buy tokens on the digital ledger since holders of NTFs traders require prove of license.

Features of Tokens

• Tokens are decentralized and non-governmental asset which simple means that they are not controlled by any central government or organization.

• Tokens are transferable, because it can be send or transferred from one user to the other.

• Tokens are used for investment and trading which means that it can be traded(buy and sell).

4)Make your own research and write extensively on any token you listed in question one. (Must include features of the token, the aim of the project, Use cases).

I will write about Dai token

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Dai is one of popular stablecoins whose value is linked to the U.S. dollars. The Dai token platform is a decentralized system built on the Ethereum blockchains, the value of the Dai token is regulated by MakerDAO(decentralized autonomous organization) to maintain its stability.

DAI token was initially release on the December 18, 2017 that was years ago by the maker foundation also known as the the makerDAO which was also formed by a Danish entrepreneur by name rune Christensen in the year 2014.

The maker protocol platform produces the actual DAI stablecoins which accepts various cryptocurrencies as collateral, fiat money like the U.S. dollars can be used to buy DAI directly, on a most well manage crypto exchange example like the Coinbase.

Analysis of the Dai token on the coinmarketcap

Dai token is ranked #26 on the coinmarketcap
At the time of my research Dai $1.00 as it is a stablecoin so it maintain its value as the U.S, dollars. In the last 24hours it has a volume of $557,199,512 and a market cap $6,002,962,751 also with a circulating supply of 6.000B DAI.

Screenshot of the Dai current market standing

Screenshot of the current market trend of Dai token

Features of the Dai

• Dai is a decentralized platform
• Dai is built on the Ethereum blockchain
• Dai is tradable
• Dai is a stable coin which means that it does not easily change it value in the coinmarketcap.
• Its value is linked to the U.S. dollars.

Aim of the project

The Dai require a large amount of deposit than borrowed to ensure liquidity in the network.
Since it is decentralized system the platform also aim at self growth and sustainability.

Conclusion

I learn much in this topic chosen especially the types of token and the blockchains they are build on and also token as large. I want to say a very big thank you @reminiscence01 for that understandable topic I really learn a lot.