Hello Steemians,

It’s week 8 in the season 3 of the steemit crypto academy and I’m very happy to be able learn and write on Tokens.

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)

TOKENS

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A token is a virtual denomination of a crypto currency created by developers in their projects .The projects are developed on existing blockchains for users who lack resources to build their own blockchain. tokens are tradable assets created through Initial Coin Offering (ICO) and is used for economic and investment purposes, Tokens serve as a stake to the holders in a specific project in the blockchain .
Tokens are natives of existing blockchains and represent utilities or services in the blockchain ecosystem of the specific projects they’re built on .

Thus ,Tokens bare dependent on existing blockchains and signify governing tokens in the Blockchain they’re found.

Some examples of Tokens are as follows:

• SUSHI : built on Ethereum blockchain.
• Huobi: built on the Ethereum blockchain.
• LINK : built on the Ethereum blockchain.
• Terra moon : built on the Bitcoin blockchain.
• REEF : built on the PolkaDot Blockchain.



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

Coins	Tokens
Coins are native crypto currency’s on their blockchains and are independent on other blockchain. Eg.Ether on the Ethereum blockchain	Tokens are dependent on existing blockchains
Coins Cannot become Tokens	When Tokens are transferred as coins to new blockchains developed by the project they can become coins Eg. Zilliqa(ZIL) , Binance Coin and TRX.Which were initially tokens on the Ethereum blockchain.
Coins serves as payment for crypto transactions	Tokens are versatile as they serve many purposes rather than only transactions.
Coin are expensive to create as they require a lot of resources and skills	Tokens are easily created because they rely on existing blockchains.
Coins can be used to buy Tokens	Tokens cannot be used to buy Coins .



3)Explain the different categories token listed below and explain its features.

Utility tokens:

Utility Tokens are special tokens created by developers for funding their projects through Initial Coin Offering (ICO) or presale.Utility tokens can be serve as payment methods in their Specific ecosystems .

Example of Utility Tokens
1.Golem (GNT)
2.Basic Attention token (BAT)

Features of Utility Tokens
I. They serve as payment method in their specific ecosystems.
II.They are created by developers and issued by ICO for fund raising of projects.

Security Tokens

Security tokens are tokens that are marked to the value of a company that is distributing the token. It is also one of the tokens that passes the Howey Test which in returns gives users some form of profits. It is also regulated which makes it difficult for scammers to make replicas of it and reducing the rate of it being attacked.

Features of Security Tokens
I.Security Tokens users are given Voting rights in terms of decision making.
II.Security tokens Passes the Howey Test .
III. Security are high regulated.

Regulations of Security Tokens
I.Regulation D
II.Regulation A+
III. Regulation S

Equity Tokens:

Just like Security Tokens Equity tokens serve as Traditional shares that signifies Ownership of assets in a company and the amount of shares one owns.

Features of Equity Tokens
I.Holders of Equity Tokens are entitled their investments and shares in a company.
II.Equity Tokens grant it’s users Voting rights during decisions making of a company.

Non Fungible Tokens(NFT)
Non fungible tokens are irreplaceable digital assets that are unique . Non fungible tokens can represent certificate of ownership of a given asset.

Features of non- fungible tokens
I. NFT’s can be transferred easily.
II. NFT’s are unique assets and are irreplaceable.



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).

SUSHI

Sushiswap (SHUSHI) is a Decentralized Finance platform built on the Ethereum blockchain that encourages traders into trading of crypto assets by exchanging tokens on pools locked by users.Individuals involved in liquidity mining on SushiSwap receive SUSHI tokens as rewards .

The SUSHI tokens gives its user governance and also interest of trades made on the platform. It also grants holders voting rights on SushiSwap Improvement Proposal (SIP) SUSHI can be traded on crypto currency exchange platforms like FTX, OKEx and Binance exchanges.

Advantages of SushiSwap

• SushiSwap allows customers to trade or invest into pools without permission.
• SushiSwap users get rewarded with SUSHI tokens which can be exchanged for ETH.

Features of SUSHI

• Individuals involved in liquidity mining receive SUSHI tokens as rewards.
• Holders SUSHI are given governing rights and make decisions on the platform.
• SUSHI holders have the rights to submit proposals which token holders vote with tokens.
![128698B1-903F-40C3-A013-D182A844433A.jpeg]()

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Aim SushiSwap project
To provide a platform for easy exchange of cryptocurrency assets and enable users to earn fees by staking in pools.

Conclusion

The world now is moving from using physical Money into digital currencies such as Tokens and coins. tokens are virtual denomination of crypto currencies created by developers in their projects. Tokens serve as a stake to the holders in a specific project in the blockchain .

Thank you very much @reminiscence01 for the exclusive lecture on Tokens and I hope I’ve covered all fields on the questions asked.