Crypto Academy Season 2, Week 2 - Homework Post for @pelon53 | TOKENS, PARTE 1
I am excited to here from you today, @pelon53. I had to translate your lecture so I can read in English. Thank you and congratulations on your appointment as crypto professor.
For the homework, I will be writing on the following:
- Security Tokens and Examples
- Utility Tokens and Examples
- Equity Tokens and Examples
TOKENS
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.
One major difference between these two is that, tokens are built on already existing blockchains while cryptocurrencies have their own blockchains.
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
The usage of tokens are specific but cryptocurrencies can be used to purchase variety of goods.
Security Tokens and Examples
1.- What is Security Token? And explain an example.
The first of them is the Security Token, this Token is similar to what in the world of finance is known as a share, if you have these they allow you to enjoy some benefits within the company that issued them or in the virtual case from any platform that created them; In other words, the Security Token represent a participation in a certain project and as established by the issuing company or platform, they can give you decision-making or voting power in said project.
As an example of this Token we will take the RealBlocks project, this project issues a token backed by real estate and through these tokens investors have a stake in the project.
What is a utility token?
Actually it is a token that is not regulated and serves to give liquidity to a company or organization that does not have funding expected to obtain a these companies where you implement it example you buy token of a gaming platform and then be exchanged on the gaming platform for digital accessories in this way the gaming company is capitalizing as their sales of utility token, The same with betting sites, for example, the site sells tokens to the user who will spend them betting on a poker game so again the company is generating capital, these tokens can reach famous exchanges such as Binance and then be exchanged for another pair, however the tokens are always used for the purpose of the game.
Equity Tokens
Equity Token is a set of data or blocks that function as a certificate of capital, an Equity token contains the same contractual information as the original certificate, but the information is recorded on the blockchain.
Equity tokens are tokens that represent capital that support assets, such as company shares. Equity tokens also have contracts, and give voting rights to owners or dividends or both.
The company offers investors via ETO, Equity Token Offerings, and allows access to the company's shares at the same time helping to finance the company's operations.
DAO example
DAO regulates and conducts business with smart contracts and blockchain technology, offers efficiency, remains, is independent, and is protected for free, DAO is not subject to regulations or rules on the blockchain
You can also program smart contracts to be easy or complex depending on your wishes, but they are released on the blockchain, being transparent and permanent, ensuring that they cannot be changed in the future.
Conclusion
Each type of token is an important part of offering a deeper understanding of the type of blockchain technology used by organizations to assist investors and that of the digital money business without having to test true volatility.
Thank you professor for this useful course article and homework.
Cc:
@steemitblog
@pelon53
Usuario en Lista Negra.
EVIDENCIA: