Crypto Academy/ Season 3/ Week 8 - Homework Post for Professor @reminiscence01 || Tokens, Coins and Pancakeswap

(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

Tokens can be said to be unique virtual cryptocurrencies which can serve as an asset and has its designated function. Tokens are tradable but they reside or are built on the network of other crypto assets that have gained there ground in the crypto space. Tokens usually function a fund raising medium for crowd sales via ICO for the purpose of funding the development of project. Tokens can also be used in transactions or investments, and since it has its own Blockchain then, it can be used to store value.

Below are some tokens and the Blockchain upon which they operate

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

What is a coin

A coin is a virtual currency or digital asset that is used just like the real life coin. A coin is the native token of which a blockchain uses to pay gas fees. A coin is a token but it is the owner of the Blockchain where it operates. It does not attach or depend on any other Blockchain apart from its own. Examples of coins include, Bitcoin, Ether, Monero, Neo, Polkadot, Dash and so on.

Differences between Token and Coin

Possession

Coins are the real owners of the Blockchain and so are independent. Coins can do without the tokens while Tokens are dependent upon the Blockchain of a coin.

Use

Coins are usually used to fund to fund the mining cost. Tokens will pay for the services which they recieve from the Blockchain which they attach using the a coin(the Blockchains native token

Purpose

Tokens are majorly developed to be used with DApps. When these tokens are created, the developer can chose the amount of units to be ever mined. Finally, features of the DApp that is meant for token will be activated using the token. On the other hand, coins are just used on its Blockchain for transactions and compensation of it's miners.

Flexibility

The function of some tokens are very unique. It could be for the representation of something physical. For example, if you wish to sell some tickets to an event. It is impossible to put those tickets directly into a smart contract. So what to do. The person goes ahead to develop a token that will represent the ticket and then partners with his desired Blockchain to get the audience to buy his tickets while on the other hand, coins are just used to store value.

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

Security Token

This type of unique token can be issued on a blockchain to stand as an external asset. Firms can give up for sale security tokens that would fulfil the same function as bonds or stocks. Holders of security token don't posses ownership rights to the firm which they have invested. Rather, they are assured a certain percentage of the profits which the firm generates. The value of security tokens originate from a tradable external asset.

Equity Tokens

Equity Tokens refer to digital tokens which are created and issued to represent an equity share in a firm. This kind of token behaves alike the traditional stock asset. If a person holds equity tokens, then he holds some kind of ownership in the investment which he has made. The tokens which he holds will show the percentage of ownership he has in the investment. Most atimes, a third party property, asset, or venture is represented by an equity token.
Equity Tokens in the crypto space now serve a way which is convinient for raising capital and in turn, the firm issues a form of digital asset to the investors.

Utility Token

Utility tokens refer to user token or app coins. It will grant it's holder future access to a product or service which a company has to offer but is still in development. This implies that utility tokens are not produced to serve as an investment.

Take for instance that you posses a chip in a casino. That your chip could be used by you to pay for deals, play games and if you wish to cash it out, you could also convert it to fiat. All this is done in the casino. Now, because you are given the offer of performing all these in the casino does not make you an owner of shares in the casino.
This is exactly how utility tokens work. An example of this kind of token is Filecoin.

Non Fungible Token

The word "Non Fungible" simply implies that it can not be replaced or replicated meaning that it is unique Now when NFT comes in mind, then it can be said to be a kind of token that is irreplaceable or not forgable. An example of NFT is a cutie( a pet) in the the game called Blockchain Cuties. In this game, once you purchase a cutie, you are the only person with that model of cutie. Most NFT are being created on reputable blockchains like Ethereum, MATIC, EOS, TRON and more.
Just like in the example of a pet above, NFT can be anything such as music, art work, trading cards or even games. NFT can be also be exchanged for other token and also fiat.

(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)

PANCAKESWAP

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PancakeSwap refers to a decentralized exchange (DEX) which offers it's users opportunity to trade various crypto coins and tokens without having a third party or an intermediary that is centralized to keep tabs on your tokens while you trade. It is built on the Binance Smart Chain (BSC) and It's token is called CAKE

AIM

As different smart contract blockchains rival each other, so does DEX rival each other with different twists, upgrade and development and these DEX are built on differnt smart contract blockchains. Rather than Ethereum, pancakeswap is built upon BSC and and as a result, charges a very minimal trading fee rate. Although Ethereum has gained more ground than BSC but Pancake is really making wave already in the Crypto space and among other DEX.

PancakeSwap looks up to competing majorly with DEXs that are Ethereum based by making transaction fees smaller, faster, and offering some other promising features.

Features and Use Cases

FARMING

This is a very unique feature which is offered by Pancakeswap. You could put your Cake into liquidity pools to enable traders to borrow and then watch as your reward come in. You could also chose to harvest your earnings at a desired time.

STAKING

This is a feature that is known offers by many protocols today. On Pancakeswap, you could stake your CAKE to earn rewards from the your stajrd cake. You could also chose to take away your cake from the pool at a desired time.

LOTTERY

With your Cake, you can access a lottery on PancakeSwap. It takes y hours for every lottery session which offers you a four digit combination at random. This feature imitates the real life lottery where your ticket needs to tally with the four digit combination which is given. Also rewards are earned if at least 2 given digits appear.

The Pancakeswap CAKE is positioned as the 30th crypto token in the crypto ranking with a market cap of $4,567,704,390 and a circulating supply of 210,976,493 Cakes. It's Market price at the time of writing is $21.74

Regards to professor @reminiscence01