Crypto Academy Season 3 Week 8 - Beginner's Course | Understanding Tokens By @fabiha
Hello everyone. This is my assignment post for professor @reminiscence01 in the last week of CryptoAcademy Season 3.
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)
The token is a Digital representation of an asset that can be exchanged using the blockchain network so it's not necessarily a store of value even though it sort of is in a way if you think about it if you're trying to store you know the tokenized version of your gold it is valuable and you are storing value but that token itself doesn't really have value it's the physical gold that has the value just a digital representation.
Tokens are considered a representation of an asset or utility that resides on the top of another blockchain. tokens do not have their own blockchain. Creating tokens is made possible through the use of smart contracts. Smart contracts or programmable computer codes that are self-executing as long as the Tim's are met. They do not need any third parties to operate as tokens built on the same blockchain that have the same template issue many characteristics. This provides a standard interface for interoperability between tokens, allowing people to store different types of tokens on a single wallet. So,
Tokens are simply smart contracts bits of code that operate to implement a smart contract.
A token is a programmable digital asset that is given a function.
The token sits on top of the protocol at the application level.
Tokens are used by developers who are building applications to give effect to the functioning of the application. This is the most important distinction to make and this is the distinction that most articles you read on the internet do not make so the key thing is pure.
The token is not integral to the functioning of the protocol but it will be integral to the functioning of an application.
Some Prominent Example of Token is 0x, Augar, Rep token and Maker.
| TOKENS | BLOCK |
|---|---|
| UNISWAP | ETHERIUM |
| BITTORRENT | TRON |
| THOR CHAIN | BINANCE CHAIN |
| WINKLINK | TRON |
| AUGUR PROTOCOL | ETHERIUM |
2)What is the difference between a token and a coin?
| TOKEN | COIN |
|---|---|
| Token Does not have its blockchain | Coin has its own blockchain. |
| Tokens are built on the prevailing blockchain. | Digital coins are supported by their native blockchain network |
| Tokens are suitable for multiple needs | Coins are often used for processing payments |
| You can buy a token with a coin, but not the other way around. | Coins are currencies that will be used for purchasing and selling things. |
| Examples of tokens are 0x, Augar, and maker, etc. | Examples of coins are Bitcoin, Litecoin, Dogecoin, etc |
3)Explain the different categories of tokens listed below and explain their features.
Utility tokens
Utility tokens are the specified tokens that carry value but can't be utilized to service at random. These are specific utility tokens.
For example
An Apptronix token can be used to pay for an iPhone replacement or buying some accessories but cannot be used elsewhere. In order to make it widely usable first, it has to exchange into cryptocurrency like Bitcoin.
The main difference is Cryptocurrency is a digital currency and can be used and data stored for transactions in the blockchain. but whereas token is issued by an organization and is widely used in the existing blockchain.
A utility token is something that provides a user with a product or a service.
Security tokens
Security tokens are the ones that give completed or part ownership in business/company to the users. If the demand for the products of the company/ services of the business increases, the value of the security tokens also increases.
For Example:
When you invest in company your receive dividends for the same, in case the dividends are paid to you via a smart contract.
Equity tokens
An equity Token is a kind of security token that goes about as a traditional stock asset. It gives holders responsibility for speculation.
The Example of an Equity Token is Neufund.
Non-fungible token (NFT)
NFTs are also built using a similar kind of programming as bitcoins, cryptocurrency, etc.
They're a part of the Ethereum Blockchain so they're individual tokens with extra information stored in them. That information stored inside it is the interesting and important part, that extra information is allowed to be made into music, videos in the form of MP3s, etc.
An example of Non-fungible tokens is a bitcoin is fungible — trade one for an additional bitcoin, and you’ll have precisely the same thing.
Features of a Token
- Tokens are utilized for investment purposes just as for exchanging purposes.
- Tokens are Decentralized
- A token is a programmable digital asset that is given a function.
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 Choose Augur
The two big names behind the augur project are Jack Peterson and Joey Krug These two are a part of the crypto world for a short time now and were instrumental in getting augur up and running in October of 2014.
Augur project defines itself as a decentralized oracle, It is a peer to peer protocol for prediction markets basically it is a decentralized platform that utilizes ERC 20 token to make forecasts on events within the world as they occur now in fact making predictions isn't a replacement thing a project like Augur has both supporters and detractors those who just like the platform use the term analysis while who are less enamored with it ask it as simply as gambling regardless of which side of the fence you fall on Augur is known for making its protocol accessible to anyone who wants to use it Don't get confused Augur itself is not the prediction market, it is the protocol for users who wish to make their own markets.
According To Coin Market it is ranked on 158
| CryptoCurrency | Augur |
|---|---|
| Market Rank | 158 |
| Price | $25.92 |
| Low - high in 24 Hour | 25.57$-27.44$ |
| Trading Volume | $60,090,928.84 |
| Marketcap | $60,090,928.84 |
| All Time High | $$99.80 Jan 11, 2018 (4 years ago) |
| All Time Low | $0.783 Sep 04, 2016 (5 years ago) |
| Circulating Supply | 11,000,000 REP |
| Total Supply | 11,000,000 REP |
| Max Supply | No Data |
Feature of Augur:
- Augur runs very smoothly, and there has been great transparency associated with the Augur project from day one.*
- Augur is a trustless, decentralized oracle and stage for forecast markets.
- Augur is a Peer to peer Erc-20 token.
Conclusion
Thank you professor @reminiscence01 for this informative and insightful lesson.
Hello @fabiha, 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:
Recommendation / Feedback:
Thank you for completing your homework task.
Thank You Professor