Crypto Academy / Season 3 / Week 8- Homework Post for @reminiscence01// Beginner's Course // Understanding Tokens

Greetings to everyone here. Below are some questions to an important lesson from Prof @reminiscence01 to the community.

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

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TOKEN

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Existing Blockchains require more valuable assets to make transactions within the blockchain easily and to promote the blockchain market. A token which is a digital currency can be found in an already existing Blockchains and it's used in exchanging/ trading on the platform. Tokens are usually served as fundraise for some crowd sales, and It rules are encoded on a smart Contract. When the idea of creating or generating a project comes in mind, it must be in two categories.

First, it can either be whether to create a blockchain or to create a complete asset that can be used within the blockchain. It's difficult to create a blockchain, because it's very costly and time consuming when creating a blockchain as compared to tokens, which doesn't follow the steps of blockchain on how it's build. For example, the Thorchain which is build on the Binance Chain. Therefore,higher ranking programmers and higher coding technicians are required to generate the building blocks of a blockchain.

TOKENS	BLOCKCHAINS
BitTorrent	Tron
Aave Protocol	Ethereum
Uniswap	Ethereum
Everipedia	EOS
WINKLink	Tron
Tether	Ethereum
Thorchain	Binance chain
KARMA	EOS

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What is the difference between a token and a coin?

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Majority of people in the crypto world have wrong understanding on Cryptocurrency, so they get confused as to whether to buy coin or token and end up buying the wrong currency thinking they the same.

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Coins	Tokens
1. They serve as native currency to their blockchain	Tokens are build on already existing blockchains
2. Coins can be used to purchase tokens	Tokens cannot be used to purchase coins.
3. Creating requires experienced coding and programmers	Can be easily created
4. They serve as money	Their uses depends on the platform they serve.

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Explain the different categories token listed below and explain its features.
Utility tokens
Security tokens
Equity tokens
Non-fungible token (NFT)

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Utility tokens

This is a form of token that is created by the developers of Cryptocurrency to help fund their projects. These tokens are usually received when a developer deposit some Cryptocurrencies such as Bitcoin, Eutherum and others to the network.

Security tokens

This is a special token used in a blockchain with or without permission which is regarded as stake in an asset. This provides link that exist between a traditional assets and digital token where profits would be given to share holders of security token and with the possession of their ownership rights.

Equity tokens

Within the blockchain, equity tokens actually used for showing an ownership to an asset. This token more or less possess some similarities of security token. Unlike the security token, the equity token has a virtual documents that's also known as digital certificate. Holders of equity token within the blockchain also receive some profits from the projects within the network.

Non-Fungible token (NFT)

These are unique tokens that are virtually been displayed within the blockchain. These special tokens cannot be changed for another item if the same kind, thus it has it own value. An example is the crypto kitties. They also possess ownership rights and no two of them are the same.

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Features of a Token

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• Tokens are decentralized
• They are transparent and are build on already existing blockchains.
• They can be used for investment and also used in trading, ie, buying / selling.
• Values are being stored

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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)

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BitTorrent Token

This is a decentralized communication protocol that allow users to transfer and distribute data and some electronic files to each other as peer to peer sharing over the internet. It initial release was in the year 2001. Bram Cohen who serve to be the original Arthur and Rainberry, Inc being the developers of the token.

This protocol is used for transferring large files like digital videos files such as the video clips, TV shows and audio files. In February 2009, the collectively estimated P2P network internet traffic was approximately 43% to 70% that depends on the location.

One uses BitTorrent client which implement the BitTorrent protocol on an internet connection computer when sending or receiving a file. A bandwidth of 3.35% in the year 2013 was responsible worldwide, of which more than half of which were dedicated to file sharing were 6% of the Total bandwidth.

Below is a screenshot of the current price, ranks and how the chart of the BitTorrent on the coin market cap.

Basic Features

• It stimulate users within the network to take important actions and service transactions of a torrent tracker.

• Basically launched with TRC-10 cryptographic token and used on the Tron blockchain.

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How Does BitTorrent token Work?

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When using a smart phone or a computer in watching a YouTube video, or downloading a document or downloading a web page, the computer directly download data from webserver, this makes the speed of the connection to be limited by the bandwidth of the channel capacity.

Aim of BitTorrent token

There are several reasons for the BitTorrent token but one of the main aim of the BitTorrent tokens is to optimize and prolong the lifespan of BitTorrent swarms in the network system.

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Conclusion

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All crypto users should attentively take note on the differences between token and coin, this is because it really affect beginners who find their selves in trading and investment for profits. Token are not directly exchange for money only coin does and this should also be known too.

By @hmohammed14
Cc; @reminiscence01