Introduction

A token is a unit of value,it is a physical and digital representation of an entility. The NFT created an economize way for investors not to give out their ownership of their data out to other platforms they will use to publicize it. In this case when they sell their token funds are being gotten by them personally, then if the new owner decides to sell his NFT the first owner who created the account starts receiving royalties instantly . And this is said to be given every time it is sold because the originators address is part of the token.

The NFT is said to give a lot of benefits to the gamers by proving lots of detailed records of ownership on in game items. The benefits of NFT in gaming is that in other types of games items are being bought for use only in the game but if it was supported by NFT the money could be recouped and sold after being done either game . While in terms of game developers, the systematically earn royalties an item is re sold in the marketplace and this gives room for mutual beneficial investment between both the gamer and the developer where they both earn from the NFT market . This also states that if the game is not later maintained and controlled by the developers the tokens earned is theirs.

Security tokens

Security tokens are digital and liquid contracts for any asset that has value, like a car, or real estate. This is also a financial instrument used to raise funds in a public company. Security token as a special crypto currency is on the rise. It could be said to be a device used to gain access to virtually restricted devices. The token sent is used in place of a password. It serves as a key to access electronic information.
Investors that use security token can expect their ownership is safe on the blockchain ledger. A crypto token has to go through a test usually called the Howey Test s usually a security token. This tests usually include a series of questions, did you invest money? Did you expect profit from it. Security token is a digital form of traditional securities. Security token also have the ability to demonstrate value. Security token could raise up the traditional markets in favor of the newer and hybrid blockchain models. Security token provides a better balance in assets, which are digital and liquid contracts for fractions of any asset that has value, like a painting, a house or equity in a company. Security token is seen as a natural bridge between the traditional finance sector and blockchain and can also benefit both.

A security token is like a form of digital security whereby an investor is given a cryptographical security code which allows him to have access to dividends, interest or share of the companies profit it also allows investors to invest in other tokens or assets to generate profits for the token them and it takes care of the liquidity issues. As a security investor, you are guaranteed a percentage of the profits generated from the investment or entity. The assets is divided by tokens that already exists in the traditional market, even in some of the biggest markets like real estate and equities. Some benefits of security token include: it offers more liquidity into the market. Transparency and efficiency of tracking data and prevents interference of any third party. It is more cheaper and faster by eliminating any third party.

Source

Polymath is an example of security tokens:

Polymath is likely to become the leading breakthrough for the issuance of Securities on the blockchain technology.It also helps to protect every investor involved rather than having secret investment decisions locked away in a filing cabinet somewhere. Polymath as a decentralized ethereum is developed with the aim major aim of making security tokens management and creation easier. It’s users tokens are designed in compliance of the securities regulations and to make transfers easier. POLY security tokens are issued in the polymath network which is known as ST-20.

Utility Token

Utility token: is the result of an ICO (initial coin offerings) whereby users of a blockchain platform pay with the tokens sold during the ICO or they earn by providing some other relevant input. While performing a utility token ICO company issues a certain number of tokens that are sold to the public. Utility token should not be mistaken for an investment. The buyers of the tokens are granted some rights in the usage of the company’s products like being giving preferential treatment. In the context of cryptocurrency, utility token is issued in order to fund of the cryptocurrency and can later be used in the purchasing of goods and services. When the majority of participants in a blockchain begin to make money outside of trading then its token. Some examples of utility tokens include, savedroid (SVD),Sirin Labs (SRN), Storiqa (STQ). These tokens are on the Ethereum technology. As a token holder, you gain access to the platform.
All services can be paid for within the native network.You can earn passive income as a token holder. Some platforms give exclusive voting rights to their largest token holders.

Golem is an example of Untility token:

Golem allows its users to lend their PCs power to the network which employs it to run a supercomputer. Users earn golem tokens by just connecting to the network. And they can also be bought via an exchange. It’s native token is GNT and used to make payments of resources on the golem protocol.

Equity token

Equity token is used in the form of ICO (initial coin offerings) for blockchain based projects. Though there are some uncertainties surrounding its legal and regulatory status. Individuals who hold equity token have some form of ownership in their investments. It represents a third party asset or property in most cases. Equity tokens was created through the emergence of blockchain technology and companies considered that they could carry the model IPO (initial public offering). Equity and tokens aren’t exactly the same but they are extremely alike. Some benefits of Equity tokens includes: It allows you as an holder to maintain and control or to give control. It maintains its value as long as your company maintains its operations
It allows investors interest to be aligned with the interests of the company.

Neufund represents equity token:

Neufund represents equity token and It’s company headquarters is based in Berlin, Germany and was founded by Marvin Rudolf and Zoe Adamovicz in 2016. This platforms allows companys to issue cryptocurrency tokens to investors.

Thank you for your lesson @pelon53. I enjoyed learning about tokens.Thank you @steemcurator02 for rewarding hard work.