Hello steemians. It's a great fun to be a part of this amazing, educating and rewarding platform called #steemit. And each day steemit Crypto Academy Community is becoming more interesting*. I am glad to be here.

Taking part in this week's lecture has been great. The lecture by professor @reminiscence got me reading and understanding more about Tokens . Thank you professor. I am @iykewatch your student on steemit crypto academy.

Homework Task week 8 questions

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 leastdifferent Blockchains)

2. What is the difference between a Token and a Coin?

3. Explain the different categories of Tokens listed below and explain its features.

☆ Utility Tokens

☆ Security Token

☆ Equity Token

☆ Non-Fungible Token (NFT)

4. Make your own research and write extensively on any token you listed in question one.

(Must include feastures of the token, the aim of the project . Use cases)

TOKEN:

Tokens are digital assets built on an already existing blockchain to represent a utility or service in the ecosystem of the project.

Tokens can be used as a voting right within the ecosystem of the project.

Tokens performs other functions on the platform for which they are built. Tokens are programmable, transparent, needs no permission and requires no trust.

Tokens can hold value and can also be exchanged. Some tokens represent tangible assets as well as intangible assets. They are created tp function in variety of ways through a process called "Tokemization".

Tokens and There Blockchains

Tokens	Blockchains
FTXtoken	Binance Chain
Karma	EOS
Dai	Ethereum
Uniswa	Ethereum
WINKLink	Tron
THORChain	Binance chain
BitTorreny	Tron

What is the difference between a Token and a Coin.

It's obvious that new users and sometimes crypto currency enthusiasts use "COINS to refer "TOKENS" , though interchangeably used, does not make them one and same thing.

Below are same clear differences between "Tokens" and "Coins".

COINS

Firstly, Coins are virtual currency made using encryption techniques, which store value over time. They are digital equivalent of real life money.

Secondly, coins have the same characteristics as money; they are durable, portable, acceptable, divisible, fungible and are limited in supply.

Characteristics of a coin

1. They can mined, sent and be recieved.
2. They are dependent on public- open blockchain, however, anyone is allowed to join and participate in the network.
3. Coins only function as money and nothing else.

Tokens

Tokens are virtual assets issued by the project which function as a method of payment within the project ecosystem, it also perform the same task coins, however the main difference is that tokens give its holders right to interact in the network.

Tokens also function as a digital asset, serve as a firm's share, grants pass to project's functionality, etc.

Characteristics of a Token

1. Tokens represents a benefit .
2. They serve as digital currency whose price is established by market forces.

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

Utility Token

A utility Token is a unique token which aids in financing projects for beginners, companies and project development sets.

Utility Tokens help a company who wish to a coupon that can be exchanged in the future for access to its services. Basically at the initial stage of financing a project, this strategy is applied .

In summary, Utility Token is a tool used to obtain finance for projects which are under development.

Examples of Utility Tokens include Golem(GNT), Attention Token(BAT), Funfair Brockblock? Timicoin, etc.

Features of Utility Token.

They are mainly created to finance new projects.

Security Token.

A Security Token is a physical device that users must have to access a system. It's a two way thing. Data authentication must flow between the user and the system to validate identitiesand access. It generates a password. This device include a "Radio Frequency", a "Smart card", a "Universal serial Bus key".

Examples of Security Tokens are;

• One time passwords (OTPs)
• Disconnected Tokens
• Contactless Tokens
• Programmable Tokens, etc.

Features of Security Tokens

It's a physical device. It provides authentication for accessing a system through any device that generates password.

Equity Token

This is a form of Security token that empowers for ownership rights. They are seen as securities and should be regarded same as other financial freedom tools. Equity Token serve as a digital certificate just the same work a physical book certificate of shares would do.

Equity Token is also known as "Xnumxst Century action "

Examples of Equity Token are; BFToken, Document, Neufund,:Slice, etc.

Features of Equity Token

It acts as a digital certificate just as physical book certificate.

A Non-Fungible Token (NFT)

A Non-Fungible Token is a virtual asset stored in virtual ledger known as Blockchain.

Non-Fungible Token represent physical assets like musoc, painting, game in a digital form. People make good living by selling or monetizing their talent as a Non-Fungible Token. One good thing about a NFT is that no two NFT are the same. Each had its peculiar identity code.

Again, almost everything can converted to money though a Non-Fungible Token.
People make enough money on Instagram just dancing or putting up a new design cloths.

Features of Non-Fungible Token.

Almost everything can converted to money though a Non-Fungible Token.

Make your ownresearch and write and write extensively on any token you listed in question one.

(Must include feature of the token, the aim of the project, use cases)

Image source

Dai

Dai is stablecoin issued by MakerDAD , an Ethereum-based protocol.

MakerDAD was first introduced in year 2015 by CEOBand was founded by Rune Christiansen and was finally launched in December 2017.

Aims of Dai

Dai aim is to maintain same ratio of 1:1 with the U.S. dollar.

Dai is basically for lending and borrowing crypto assets without the need for an intermediary - permissionless system with transparency and very reduced restrictions.

How Dai Token work.

Dai App home page.

Dai is an ETC-20 Token that can be purchased from both centralised exchanges and decentralised exchanges (DEXs)

You can generate and borrow DAI by opening a Maker collateral Vault through MakerDAO's Oasis borrow dashboard and deposit Ethereum-based assets as collateral.

Dai is one major integrated digital assets in the blockchain ecosystem. Once borrowed can be used in decentralised finance (DeFi) application.

Advantages of DAI Stablecoin and uses.

1. Income generation .

2. It operates 24/7(it has no closing time)

3. The security is high.

4. Its fast and cheap.

5. It has a stable value.

Features of Dai

The screen shots above gives details of the DAI Token.

More Features

1. Unprecedented level of decentralisation users submit Ethereum-based into a Smart contract as collateral in maintaining DAI's tie to the U.S dollar.
2. The holders of DAI receive interest on their DAI.
   3.DAU makes use of different cryptos as collaterals.New collateral options are added and it ls still counting via voting by the MakerDAO community.

CONCLUSION

Tokens are digital assets built on already existing blockchain to represent a utility or service. Coins though interchangeably used by same individuals in the Cryptocurrency world but are not one and same. Coin just function as money nothing more.

Dai Token is for lending and borrowing crypto assets.

Warm regard to all steemians. And a special mention to professor @reminiscence.