Steemit Crypto Academy Contest / S13W1 - Token Swap
| Hope all will be well. This time after a long time I am posting in this academy, I mean community. That too in the form of this time's engagement challenge entry. So let's begin. |
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Maybe my entry post is not as long as others. But I definitely want to try. Before that I invite @suboohi @malikusman1 and @chasad75 to also read my post and express their opinion on it. And also if participate in this competition according to your choice.
Token Swap in my own words:
I write what I understand about token swap within three days, hope I am good at researching.
Every cryptocurrency and every token is using some kind of blockchain. So when a coin or token leaves its own blockchain and converts to another blockchain, whether that blockchain is its own or another. This process is called token swap۔
Then when they are converted to the new blockchain, those tokens from the old blockchain are destroyed. Their value becomes zero.
Like EOS Coin, TRC Coin was first on the Ethereum blockchain and later they created their own blockchain and then converted to it.
Over time they built their own blockchain, and when it became a blockchain, they left Ethereum and converted token swaps on their blockchain.
It is said that they swapped one chain token to another chain. Those blockchains are such that you can easily add different blockchains on the metamask in your wallet. And the token that is on the one blockchain you are not able to get that token on another blockchain.
Like the Steem Hunt token used to be on the Ethereum blockchain. Now you can't find it on Binance Chain.
It's called the mainnet swaps too, for example EOS and other, and they swap for 1 for 1 ratio.
Why do blockchains perform a swap?
One token can be exchanged for another token. It is usually when a new blockchain is created that temporary tokens are issued to the first users. And when they take interest to creates their own blockchain, users are asked to send their tokens to that blockchain. And addresses are also issued for this. There are several reasons why this token swap happens.
There is a defined ratio, and conditions for each blockchain token to be swapped.
If two blockchains are connected, they also create their own token that can be exchanged for the tokens of both blockchains.
If a blockchain is re-opened after a long period of time, the token swap still exists.
An existing example:
There are many examples of this, but from these all. An example of this is the Tron Smart Blockchain.
Tron was originally Ethereum based token and switched it's protocol to it's own Blockchain just a year later it was launched. Tron was launched by Justin Sun in 2017 and it's swapped in 2018.
Steem Blockchain's Era:
It happened once in the Steem era too, that a separate blockchain was created, so those who had Steem tokens at that time could be converted to Hive at a one-by-one ratio.
That was a hard fork of steemit, and the coin Hive is then launched and renewed in the form of the hard fork, or token swap happened back in 2020.
Risks, for Users:
There is a risk that if the team doing the token swap is not very experienced or if the blockchain mechanism is weak, or if there is a lack of good developers, then the tokens can be easily hacked. There remains a danger of leaving.
Another risk and disadvantage for investors is that investors who are long-term now often do not know the deadline on any of website, or social media account, or blog, if they are not online, Given by the blockchain, those tokens that were to be left behind, becomes zero. And get destroyed.
Leaving the blockchain and moving to another blockchain, all coins from that blockchain are destroyed. And a disadvantage may be to the users that the old coins that are on the old blockchain are worth zero.
It's @growwithme©
Special & Original Work!
Assalamualaikum dear!
Me apki efforts ko appreciate krta hun. Apny diye gay topic ko munasib tareky sy biyan kiya ha. Albata, apki explanation bohat kam ha lekin jitna apny likha ha, bohat acha likha ha. Token Swap k zariye aik blockchain funding b kr skti ha jo k iska aik bohat eham advantage ha.
Share krny ka shukria. Umed ha ap regularly SCA me post kro gy. Me apki kamyabi ka duago hun.
Waalikum salam, kia bat hai. MashaAllah, or maqsad bhi samajh gya, bohot shukria bhai. Baki, Men koshish karta rahun ga.
🚀 Excellent post, @growwithme! 🌟
This comprehensive guide on token swaps in the Steemit Crypto Academy is both informative and well-structured. You've made a complex topic easy to understand, which is greatly appreciated.
I am very thankful for your visit @hamzayousafzai brother.
Hello brother.
You have written everything in short but you have explained it well in short simple words which is really nice. I read your post very quickly and It was quality content in short simple words.
Good luck for the contest.
I was very afraid of this shortness, but I personally don't like to read length in posts and article often. So I thought what I like for myself, I tried to do that. This is also the fact that I didn't know about the topic deeply.
I am very much thankful for your appreciation.
If you can explain the topic in short length, then I think it's fine because We only need to explain it in our own words.
Greetings mate,
I see you are someone who doesn't like long talks and write up as you have chosen a brief but impactful way to deliver the main ideas of the topic Token Swap.
You've explained exactly what Token Swap is all about borrowing examples from the Ethereum and Tron case, where tokens where swapped from ERC-20 tokens to Ethereum in the Ethereum blockchain. You've also listed some factors that causes or contributes to while projects swap their tokens and also not forgetting the risks that comes with Swapping Tokens. I wish you all the best
It's nice to see you did enjoy my post and given a visit.
We continue to learn from each other, remember no man is an island of knowledge to himself, so I always learn from every other entry and yours happens to be one of them. Thank you mate.
Absolutely right.
Also I really love that part he spoke about Ethereum Blockchain Token Swap and I really appreciate the knowledge shared
It is indeed heartbreaking to see that he was off track with all the good intents. But all the best, I know you will only get better with time.
Thank you so much for participating in this engagement challenge I am happy to see your entry here but unfortunately your answers in all the questions are very confusing and infect I realise that you have not much good understanding about basic concepts of the topic like as you saying.
I don't think so that this is a process which is token swap in actual words but I am always here for your motivation and very soon definitely there would be a content which would be very informative by you I wish you good luck for your future
Maybe, thank you.
Welcome 🤗
Oppss friend indeed you tried your best and you wrote out of the knowledge you have and I appreciate you for that but as the prof had said you mistakenly misunderstood the question by giving some wrong answers and it's normal everybody to that I hope and believe you do better in the next assignment.
Thanks for sharing friend, wishing you success please engage on my entry https://steemit.com/hive-108451/@starrchris/steemit-crypto-academy-contest-s13w1-token-swap
If this is assignment, well I am very bad at assignments. 😂