Steemit Crypto Academy Season 3 Week8| Understanding Tokens
In this topic, we will learn a lot of new things, we will learn what tokens are, we will also discuss on the different types of tokens and the blockchain they are built on.
At the end of this topic, we should be able to vividly distinguish between a token and a coin, we should also be able to explain the features of some tokens.
Indeed, this topic promises to be informative, join me as we explore and better our Understanding on tokens.
WHAT DO YOU UNDERSTAND BY TOKEN AND GIVE AN EXAMPLE OF AT LEAST FIVE TOKENS AND IDENTIFY THE BLOCKCHAIN IT IS BUILT ON
Token is a kind of cryptocurrency that is potrayed as digital assets that dwells on an existing blockchain in an ecosystem of a contract/project.
Tokens are developed through what is known as Initial coin offering [ICO] and are manufactured by crypto companies with the intent of making funds.
Tokens built/ linked to a block chain are usually very difficult to hack due to the high security of the blockchain.
A blockchain, therefore, is a decentralized ledger that keeps records of digital assets, and it does so in a way that makes it nearly impossible to change, manipulate or hack, this is the reason it is difficult to hack tokens that have been linked to a block chain.
TYPES OF BLOCKCHAIN NETWORK
| BLOCKCHAIN NETWORK | EXAMPLES |
|---|---|
| Public blockchain | Bitcoin [BTC], Ethereum [ETH], Litecoin [LTC] |
| Private blockchain | Ripple [XRP] |
| Consortium blockchain | Quorum, Hyper ledger, Corda |
| Hybrid blockchain | IBM food trust |
Also, there are different kinds of tokens built under different blockchain, and they are:
| TOKENS | CORRESPONDING BLOCKCHAIN |
|---|---|
| FTX TOKEN | ETHEREUM |
| BABY DOGE COIN | BINANCE SMART CHAIN |
| APENFT | TRONS |
| KARMA | EOS |
| BITUP | ETHEREUM |
| FREE coin | ETHEREUM |
| SAFEMARS | BINANCE SMART CHAIN |
WHAT IS THE DIFFERENCE BETWEEN A TOKEN AND A COIN?
The popular misconception between a token and a coin will be treated today, as many mistake tokens to be coins and vice versa, today we will clearly see the difference between the both so that we can also educate others, join me as we analyze the difference;
| TOKENS | COINS |
|---|---|
| Tokens are cryptocurrencies that is built on an already existing blockchain | They are built on their respective blockchain |
| They are easy to create as they don't require creation of a blockchain | They are difficult to create as they require their own blockchain |
| Tokens are circulated to the public through ICOs | They are circulated through mining |
| They are used to store value and to invest | They are used to process transactions. |
EXPLAIN THE DIFFERENT CATEGORIES TOKEN LISTED BELOW AND EXPLAIN ITS FEATURES
UTILITY TOKENS
SECURITY TOKENS
EQUITY TOKENS
NON-FUNGIBLE TOKEN [NFT]
Please do not tire out, join me as we continue on this wonderful topic, we will discuss on the above listed tokens, don't get distracted.
UTILITY TOKENS:
These are tokens issued to financially support the development of a cryptocurrency and can be used later on in the future to access a company's product.
For example, a company running on an Uber business can issue an Uber utility token which can be used to pay for services rendered by the company.
ROLES OF UTILITY TOKENS
- Giving right to the owner of such token as it can be used to purchase a product
- Improves user experience by giving them token as reward for performing certain action
- As a medium for the distribution of earnings
SECURITY TOKENS:
These are tokens that acts as link between the traditional assets and digital assets.
Security tokens represent an authoritatorship stake in a digital asset, more specifically a company and permits it's holders to distribute it's profit among themselves.
EQUITY TOKENS
This acts as a third party venture as it's holders possesses ownership over their investment. It works like a traditional assets.
Equity tokens appear in various forms:
- Stocks
- Futures
- Tokenized ventures
- Tokenized real estate
- Option contracts
NON-FUNGIBLE TOKEN:.
A non-fungible token is another kind of assets that is managed online in a digital ledger. This tokens are usually attached to a distinct value, so, it can't be copied easily .
CHARACTERISTICS OF TOKENS
- They are Decentralized currencies, that is, there is no central office/organization accepting or releasing tokens.
- They can be used to store database information about some system entity
- They are used for investment purposes
- They don't have a blockchain, so they need to be built on an existing blockchain.
MAKE YOUR OWN RESEARCH AND WRITE EXTENSIVELY ON ANY TOKEN YOU LISTED IN QUESTION ONE
As seen on the image above, among my outlisted token in question one, I will love us to explore the token with the name FREE COIN
Free coin is a decentralized token which is built on Ethereum blockchain, it permits it's holders to buy and sell different cryptocurrencies.
Free coin was launched in April 2018 by a minute group of individuals known as volunteers , based in Asia and Europe.
The development of free coin is backed by free crypto LTD based in Mahe, Seychelles, with the platform standard of ETH ERC20.
The decisions made on the running of free coin is not made by a central management team as free coin possesses none. Instead decisions are made by the administration of several numerous free coin telegram groups
Free coin can be traded with numerous cryptocurrencies as seen above.
FREE COIN'S STATISTICS
The statistics of free as of the time this post is made is outlined below
| FREE COIN | STATISTICS |
|---|---|
| Price | $0.000002668 |
| Price change 24hr | $–0.0000003164 |
| 24hrs low | $0.00000248 |
| 24hrs high | $0.00000306 |
| Trading vol 24hr | $1,188,179.24 |
| Vol/market cap | 0.04429 |
| Market Dominance | 0.00% |
| Market rank | #652 |
| Market cap | $26,826,312.49 |
| Fully diluted market cap | $29,687,383.84 |
| Circulating supply | $9,938,989,997,635 |
| Total supply | 10,998,999,997,635 |
FEATURES OF FREE COIN
- It permits trading with numerous number of cryptocurrencies
- It is a cross blockchain coin as it is circulated on Ethereum [ERC–20] blockchain, Tron[TRC10] blockchain and Binance smart chain [Bep20]
- It can be used as e-commerce payment method
- It is supported by trust wallet, coin base, metamask etc
- It has been listed on several exchanges such as Bscs swap, Bakery swap, pancake swap, Uniswap,Burgerswap etc.
AIM OF FREECOIN'S PROJECT
- One of the aims of freecoins project is to make the coin available for B2B and P2P transactions at an almost insignificant cost.
- It also aims at creating a low risk coin community as one starts his crypto journey
- It also aim at being available to all sort of people, both rich and poor.
- It also plans to be circulated on many other blockchains and exchanges.
Hurray!!!
We have successfully completed our tour on the Understanding of tokens, this adventure has proven to be very educative. I thank you professor @reminiscence01 for the lecture.
We have come to understand what tokens are and how they differ from coins, we have also known some blockchain platform and the tokens residing in them.
May we continue to make research and acquire more knowledge as we continue our journey in the crypto world.
I eagerly look forward to your next lecture, o Prof @reminiscence01.
Please my comment box is open to all individuals who has additions and questions, for no one is an island of knowledge.
Hello @jueco , I’m glad you participated in the 8th week of the Beginner’s class at the Steemit Crypto Academy. Your grades in this task are as follows:
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Thank you so much Prof @reminiscence01 for your class, I look forward to your next lecture