Crypto Academy Season 3 Week 8 - Beginner's Course | Understanding Tokens
INTRODUCTION
Greetings to you my lovely Steemians. Today is another day for we to be rejoice and be happy. With the joy in my heart I sincerely thank professor @reminiscence01 for his wonderful lesson that have impact me a lot with knowledge on the topic: "Understanding 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)
According to my understanding, Token is regarded as a virtual currency, that is built from cryptocurrency that is already in circulation. Token stands as a tradable assets or utility that do not depends on any other blockchain except it own blockchain. Tokens is also passed through the process of Initial Coin Offering (ICO) for it to be known to the public and for the purpose of fund raising.Token are of different types such as; currency tokens, security tokens, utility tokens, asset tokens, reward tokens, Non-fungible token and many others.
Now that we have gain understanding about token let's look at some example of tokens together with the blockchain they are built on.
| Example of Token | Blockchain Built on |
|---|---|
| Basic Attention Token (BAT) | Buit on Ethereum blockchain |
| Bancor (BNT) | Ethereum blockchain |
| Augur | Ethereum blockchain |
| VeChain token | VeChain Thor blockchain’s |
| Klever | Tron blockchain |
| FXT | Binance Chain |
| Everipedia | EOS blockchain |
| Tether | Ethereum |
| 0x | Ethereum blockchain |
| Golem (GNT) | Ethereum |
2) What is the difference between a token and a coin?
The difference can be seen in a tabuler form
| Token | Coin |
|---|---|
| Token are built on blockchain network that is already in existence | Coin are built on their own blockchain network |
| Tokens do no have a blockchain on their own, their depend on another blockchain to get benefits. | Coins are independant their do not depends on any blockchain |
| Token can be easily create since it's built on blockchain that is already in existence | Coin cannot be create easily like tokens |
| Tokens are only good for different needs unlike coin | Coin is used for carrying out transactions |
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 the most well-known token type of Fungible Tokens when it comes to casino game. It is the unique type of token that is used for raising fund or financing projects that is at it early stages. The tokens is very useful as is the type of token that allow users to gain future access to the services of the company/platform. Although the utility token is essential to a company that want to create a reward token that can be use as exchanged before their services can be access by users. As earlier say, the utility token is a means of raising funds for new project start-up.
Example of Utility tokens
Golem (GNT) and Basic Attention Token (BAT) are the two common types of utility token. Let's us take a quick look at them.
Golem (GNT)
Golem (GNT), is a token that is created for the purpose of creating an economic system that will allows peoples to rent computing power use for several tasks.
Basic Attention Token (BAT)
This token is built on Ethereum blockchain as a utility token use for accessing the services of BAT. We all know that BAT is used for paying of content creators and publishers which is the first motive of BAT.
Security tokens
Security tokens is a proof that a user own a token. It is a special types of digital asset that is specifically designed for the purpose of validating and ensuring users ownership rights which is also used as an instruments of transfer of value that is similar to cryptocurrencies, but instead serve as a regulatory tokens like the way our local currency is been regulated. The security token has the ability/power to change the way transfer of asset like crypto, money, stocks etc, in the financial markets are transfers as been the security token that issue policies.
Equity token
Equity token is a token that function just like the way our local currency works. It it's almost the same with the security token, people that hold the security token are entitled to ownership right and can receive interest from their investment. When looking at the right that is entitled to holders of the token, I can say that equity tokens is a token of third party that only give rights of ownership to holders. Example of the equity tokens is Tokenized companies and Tokenized Real Estate.
Non-fungible token (NFT)
Non-fungible token (NFT), are unique assets that give proof of ownership to holders. NFT can be of any kind of digital assets like game,photos, video, stocks any types of service that one can get online. Example Crypto Kitties game is an online game that allow players to create and bread unique digital cats. In a case that a player wish to upgrade his/her cats to higher level, the player need to pay in ETH to unlock whistles and bells.
The Features of a Token
Token are decentralized
Tokens can be used for trading and investment
Tokens are also used as a store of value just like any other asset.
Tokens add liquidity to market and allows low class citizens to invest on and sell when the price is high.
Tokens can be use in several function.
Basic Attention Token (BAT) is built on Ethereum blockchain.
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).
About Basic Attention Token
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Basic Attention Token (BAT), is a token that is created to for the purpose of empowering new blockchain based projects and platform that is into advertising to reward the attention that users spend looking at the advertisement. Basic Attention Token, also reward content creators and publishers with BAT for their efforts. Brave Browser is the place were users can easily earn BAT. Brendan Eich and Brian Bondy are the founders of the Basic Attention Token (BAT) was founded by Brendan Eich and Brian Bondy in 2017.
The features of Basic Attention Token (BAT)
The main features of the Basic Attention Token (BAT) is the capacity in rewarding users that are not yet sign up for Brave Browser or part of the BAT network. Since the launched of the Basic Attention Token and Brave Browser their have so far achieved a very recommendable uptake by users. In October 2020, Basic Attention Token (BAT) achieved more than 368,000 unique users wallets, where the Brave Browser also achieved a total of 20.5 million users that are active.
The Aim of Basic Attention Token (BAT)
The main aim of the Basic Attention Token (BAT) is to solve the problem that is faced with online advertisement.
To serve as a payment token for the advertising campaign that is run on Brave Browser Ads.
To rewards content creators and publishers for their efforts and time.
Basic Attention Token (BAT) Current Market Price
As at the time of writing this homework task, the current market price of the Basic Attention Token (BAT) is $0.780562 USD with a trading volume of $230,270,778 USD. According to the information gotten from Coinmarketcap Basic Attention Token (BAT) is ranking #84 in Coinmarketcap, which is shown on the screenshot below.
Hello @drmax1, I’m glad you participated in the 8th week of the Beginner’s class at the Steemit Crypto Academy. Your grades in this task are as follows:
Observations:
This is not correct. Tokens are digital assets built in already existing blockchain.
Recommendation / Feedback:
Thank you for completing your homework task.