Steemit Crypto Academy Season 3 | Week 8| Understanding Tokens by @joelmaxwell

Introduction

Hello steemian, am really glad to be part of this wonderful lecture about token,coin and their blockchain.As I will be doing, I hope to learn more and do my best.

Question 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)

             Answer

Token is a digital currency that is being invented from a blockchain that has been in existence already. It can also through crowdfunding method ICO (Initial Coin Offering) be useful in supporting any project of a particular company.
We also have different categories of token which are utility token, Equity token, security token and non-fungible token. It can also be used in trading such as buying and selling, as a medium of exchange and also used in investing.
It can also be saved or be stored for future purposes.

Examples of token and their blockchain

S/n	Token	Blockchain
1	shiba inu	Ethereum
2	uniswap	Ethereum
3	pancakeswap	Binance chain
4	BTT	Tron
5	REEF	polkadot
6	Aave protocol	Ethereum

Question 2

What is the Difference Between a Token and a Coin?

             Answer

Source

S/n	Token	Coin
1	A token is a digital currency that is being invented from a blockchain that has been in existence already.	A coin is a digital currency that is being invented from it native blockchain.
2	Token are not being mined	Coin are being mined.
3	Token can be used for many purposes not only for transactions	Coin can be used for transactions purposes such as payment of a particular thing.
4	Token is easy to easy to create	Coin is complex to create.
5	Token is being shared to the public through Initial coin offering(ICO)	coin is being shared through mining.
6	uniswap and pancakeswap etc are examples of Token	Bitcoin and Ethereum are example of coin.
7	Token is easily created	Coin is not created easily.

Question 3

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

            Answer

utility Token

Token that is being designed for a purpose and company normally make use of this token in funding of projects, we can swap it for any cryptocurrency.

features of utility token

• This is the type of token us being used by a company in funding a particular project the want to start up.
• It is a token that has really helped the company in accessing some valuable services in the future.
• It is a token that is being developed for a particular tasks.
• It exist in a blockchain that has existed already.
• It can be use for trading.
• This type of token can be swap.

security token

• This is the type of token that give those investing in a particular company the right of shareholders in the company and is also enable to benefit from any profit the company incur.

features of security token

• The investor which is shareholders may own some bond of the company which means in every profit made by the company in a particular period of time the shareholder has a percentage.
• It is also a coin that link up the digital token with traditional finance.
• It exist in a blockchain that has existed already.

Equity token

A token that allows an investor to know what he actually owns in the company, it is a very unique token. Then token allows the investor with small capital spread it funds in the company

features of Equity token

• This is the type of token that looks similarly like the security token but differs in that, it is a token that allows the investor to actually know the actual portion, percentage or the amount of shares he actually owns as a shareholder in a company.
• It may be in form of stocks,tokenized real estate, option contract etc.
• It also also allow the investor to be able to make decisions about a project a company may want to undergo.
• It also allows the investor have a freedom to really distribute or spread funds in the particular company he wishes to invest in making him able to enter the market with a minor or little capital.
• It is a unique token.
• It exist in a blockchain that has existed already.

Non fungible Token

A unique token that can not be duplicated and stored on a digital ledger.

features of Non-fungible Token

• This is the type of token that is mostly found in online games, it can not be exchange with anything.
• It is a token that can be purchased digitally
• It is very unique.
• It is also a data unit that is being stored on a digital ledger and can be represented with videos, photo, audio etc.
• It exist in a blockchain that has existed already.
• It can not be duplicated.
• It can be use for investment.
  
  
  

Question 4

MAKE YOUR OWN RESEARCH AND WRITE EXTENSIVELY ON ANY TOKEN YOU LISTED IN QUESTION ONE

              Answer

I will be writing on the shiba Inu

Source

The shiba inu is a token that is being built on an existing blockchain and the blockchain it os being built on is the ethereum blockchain.
It is an ERC 20 token that was created on August 2020 by an indian by name Ryoshi.it is one of the fast rising token in the society due to the fact that it gain it popularity through the use of memes(dog). And also has a nickname which is dogecoin killer.The creator of this coin also form 3 token which are SHIB, LEASH and BONE and this 3 coins as a decentralized exchange known as Shibaswap, which allows rhe token to be swap,does staking and yield too, according to the token white paper it is to create 3 coins with 3 different supplies meaning that the SHIB,LEASH and BONE has 3 different supplies.
The token permit it users to be able to own up to a billion of the token or the may even own a trillion if the want.
It was also rank at number 42 when I was doing this home work.
Below is the price statistics of shiba Inu


Source



Source

features

• it is being built on the ethereum blockchain as it can not exist on it own
• It is an altcoin of dogecoin.
• The token gain it popularity through the memes it used, which is a dog
• users of this token can own up to billion or trillion of it.
• It is nickname as the dogecoin killer.
• It can be swap,stake and yield gain.

Aim

The aim of shiba inu is for it to be able to improve on the part dogecoin didn't improve and also the conversion of memes, jokes into money.

conclusion

The lecture is really interesting as I have learnt alot about token that it can not exist on it own but will rather exist on another blockchain unlike coin,I also did a research on shiba inu which is a decentralize meme token and has the aim of converting memes into money.
I want to thank prof @reminiscence01 for the wonderful lecture.