Beginner Course I Crypto Academy Season 3/Week8 - Homework Task : Understanding Tokens

Greeting everyone. This is the end of season 3. In this lecture, the professor @reminiscence01 have explained the token in depth. I didn't knew this much about token before reading this lecture. This lecture have clear many concept of mine and all credit goes to the professor.

Source

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)

A token is a virtual currency which exist on already existing blockchain. The blockchain provide the platform to build the tokens on the blockchain. The different tokens are built on blockchains by multiple companies for fund.

Many resources and time is required for creating a blockchain. So token do not create their own blockchain. Instead, they are created on a blockchain which is already into existence. They do not have the native blockchain. They depend on the blockchain on which they have been created and without it, they cannot exist.

We know that the blockchains are transparent and data is not stored at a central place. The tokens are also built on the blockchain so these also are hard to hack.

Multiple traders invest in the tokens because the tokens are cheap comparatively. The people invest in token with this hope that the token price will rise in future and they will get benefit out of it.

There are multiple tokens which have been created on different blockchains. For example;

- TRC-20 is a token which has been created on Tron blockchain

- Uniswap is a token built on Ethereum blockchain

- BITUP is a token built on Ethereum blockchain

- FTX is a token built on Ethereum blockchain

- Free coin is a token built on Ethereum Blockchain

- BAT is a token built on Ethereum blockchain

- APENFT is a token built on Tron blockchain

- WIN is a token built on TON blockchain

- CAKE is a token built on Binance smart chain.

There are many other token working on different blockchain. It is not possible to cover all of them here so i am going to end this question here.

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

There is a misconception that the token and coin are same. But these two are different with different feature and usage. Here i will discuss some main differences which will clear you how the token and coin are different from each other.

TOKENS	COIN
The tokens are available and the investors are allow to buy them for coins.	It is not possible to buy the coin with tokens.
The tokens are built on already existing blockchains	The coin are built on their own blockchain.
Virtual currencies	Digital currency which you can store as much long as you want.
Are not native coin of blockchain	Are native coin of blockchain
There is an event which is known as Initial Coin Offering. In this event, the tokens are sold among the investors. It is a way to circulate the created tokens.	The coins are the currencies which are circulated among different people on blockchain through mining.
There is no limit of token supply.	The coins are supplied in a limited range. The more the supply, the less the demand and it will decrease the price of coin.
Tokens are depend on the blockchain on which they have been created. It can only be used specifically for that project for which it has been created. Token is depend on the coin of blockchain	Coins are independent in its usage. These do not depend on tokens.

There is no need to create a separate new blockchain for a token. The token are created on already existing blockchain.

Much effort and money is required to create a blockchain. Only then a coin can be created

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

The utility token are those token which are build for raising the funds for a project. Whenever funds are required for the development of a new currency, the Utility tokens are issued. The Utility token provide access to the multiple services offered by the company. The features of the Utility tokens are as follow.

- Utility tokens do not have a separate blockchain. They built on the already existing blockchain.

- You can buy a product of the company using the Utility tokens.

- You can exchange the Utility token with any other token.

- This token also follow the supply-demand rule. When the supply increase, the demand decrease and price too. And when the demand increase, the supply decrease which result in rise in token price.

- Whenever the users perform something excellent in that ecosystem, they are rewarded with the tokens to encourage them.

- The holder of this coin allow the users to stake or invest the tokens.

The Equity tokens are those token where the people can invest. It show the ownership of an asset like buying the share of a company. This token work just as you buy the shares of a company and earn profit from them. The Equity tokens show the ownership.

- These tokens allow the user to participate in decision making

- These tokens do not have their own blockchain. They built on the existing blockchains.

- These tokens are used to buy the shares of the company and allow you to earn the profit for your shares.

- It give the user control and ownership.

The security tokens are use to buy the stock. These are the digital stock which allow the holders to buy the share of a company and the share holders earn the profit from their shares. These tokens are also allow the token holders to participate in decision making processes.

- Allow the people to buy the share of a company

- These tokens do not have their own blockchain. They built on the existing blockchains.

- Allow the token holder to participate in decision making.

- Transparent

This is a very unique type of token. Here each NTF token is different from other NTF token. The NTF tokens are sometime tangible and in some cases, these are intangible. These are not interchangeable.

- USe for investment purpose.

- Tangible and intangible

- Built on Ethereum blockchain.

- Transparent

- Unique

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).

To answer this question, i will choose the free coin. The free coin was introduce in 2018 in Asia and Europe. This coin is circulating on the top ranked blockchains such as Ethereum and Tron. This is a decentralized token. It is transparent and no third party is required here for transaction.

This token is very secure and can be use to buy or sell the crypto coins. It built on the blockchain so it cannot be hacked easily. This is the best coin to learn the crypto world. In the FREE coin token, the risk of losing money is very small.

With approximately 1280 FREE coins available for every person on earth, the FREE coin refers to itself as the first crypto coin with the correct level of supply to support the anticipated global crypto adoption. _Source

The Current price of free coin is $0.000002 USD. It's 24-hour trading volume of $388,489 USD. The current CoinMarketCap ranking is #699 The market capitalization of Free coin is $23,400,265. It has a circulating supply of 9,938,99B Free coins.

The above is the trading view of the Free coin. When the supply of coin rise, the demand and price of this token decrease. But when the demand increase, the supply decrease. In such situations, the price of coin is rise.

This is a well known token which can be used as payment method. It is listed on multiple exchange platform such as Pancakeswap, Uniswap, Gate.io, etc

- The current CoinMarketCap ranking is #699

- The token allow the investors to buy or sell multiple crypto currencies.

- Decentralized

- Transparent and no need of middle man to perform the operations.

- It is circulated on Ethereum blockchain, Tron blockchain and Smart binance chain.

- You can buy or sell multiple coins at low transaction fee using Free coin token.

- Easily available to all

- It is a good token to learn about the crypto world because here the risk rate is very low.

The tokens are built on the already existing blockchain. The token and coins are consider same but these two are different from each other. The tokens are not the native currency of blockchain but the coins are the native of blockchain.

The tokens are depend on the blockchain on which they have been built. Multiple tokens are there and you can find many on coinmarketcap.com. I have explored the Free coin token in detail. I want to say thanks to the respected @reminiscence01 for this amazing lecture in which i have learned many new things.

Regard
@farooq2923