STEEMITCRYPTOACADEMY SEASON3/ WEEK8/ HOME-WORK POST FOR REMINISCENCE01/UNDERSTANDING TOKENS
INTRODUCTION
Nice topic professor I'm happy that we have officially came to conclusion as a result of the third season prior to Crypto academy, I have gone through your post frequently and trust me I have really understood alot, many thanks to you for this wonderful lecture of your, once again thank you very much professor @reminiscence01. I will kick-start now below is my homework task.
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)
When we talk about coins, that is altcoins, and tokens they both seems to used interchangeably in the crypto world, but all the same we still have differences that exist between the both terminologies.
What is a token; A token can be defined as an assets that is non-native to a blockchain technology, in here we have a native, and non-native, in a blockchain a token has massive value and it outclass just for monitory reasons token doesn't only operate on the blockchain that it's been built on but it requires another different platform for it to operate.
Let's take an example of another cryptocurrency, a very powerful one if I may say ETH, this cryptocurrency is a native of the blockchain on which it is built on basically it's built on Etherium blockchain, by so doing this crypto is a coin. One thing we know about Etherium blockchain is the ability to create out new coins, within the outrange of the network itself.
Every Crypto currency that is been created via the network is regarded to been a token, let's say kingcent is been created on the network, Kingcent will become a token, we have the USDT it's a stable coin and it's been created on the Etherium network. ETH is regarded as a native coin that is built on Etherium blockchain it's has a designated function it affords on the blockchain like paying of gas fee, on order for smart contracts to be triggered, be it as it may it's regarded as a token.
In general the crypto market very volatile is complex, we should note that almost 60%, of our tokens are been galvanized on the Etherium network thereby making use of the ERC-20, any token built around Etherium blockchain is regarded as ERC-20. A token is filled with value and it can easily be Exchanged, a token has a greather instinct greather than just been money, token has all it takes to deliver a concise value to different investors beyond just intensive return on investment.
When we talk about tokens we have one general thing in common here, is either we are referring to a designated Crypto token, for example BTC, LTC, and all the rest, it can also be seen as a token that generally exist on a different crypo-currency blockchain at large for example we talk about the ICO tokens, that is the initial coin offering built on Etherium blockchain.
EXAMPLE OF FIVE TOKENS AND THE BLOCKCHAIN THEY ARE BUILT ON (THREE DIFFERENT BLOCKCHAIN'S)
| Tokens | blockchain's |
|---|---|
| Pancakeswap | binance smart chain |
| Uni-swap | Etherium blockchain |
| Everipedia | EOS blockchain |
| BTT | Tron blockchain |
| Shiba inu | Etherium blockchain |
What is the difference between a token and a coin?
Here I will explore the total difference regarding this two, token and coins, although there are no much differences.
| Token | coin |
|---|---|
| Token's are very much popular through initial coin offering, known as the ICO. | coins are shared thus distributed through mining. |
| Tokens naturally are been built on the already existing blockchain. | coins basically are been based on blockchain network. |
| Tokens aren't difficult to create/built because it already exists on blockchain for example the EOS blockchain. | creating a coin is very much difficult than creating a token. |
| Tokens are basically used for various needs but not used for payment. | coins are basically used for payment processing. |
Explain the different categories token listed below and explain its features
Utility tokens
Security tokens
Equity tokens
Non-fungible token (NFT)
Utility tokens; this category of token is very much known in the crypto space, it's basically used to power key operations on a protocols, Ether is an example of a utility token and it's very popular. Ether assists in powering transactions/smart contracts, right here on Etherium network.
Also it can be used for payment making, it's basically been utilized on the blockchain, utility token came to lime light on 2017, at this time some project was marked, their tokens as a utility one the reason was to avoid linear regulations for various investment opportunities.
Note ICO which means initial coin offering, is basically a crowdfunding operations in the crypto space/Market, it's is similar to the IPO, in stock, the different organization's launched the ICO, the startup they galvanized and raised cash for new projects.
Security tokens; contracting a situation of money collections courtesy security tokens the initial coin offering have a thought and decided to open and declear a project like the fundraising campaigns thus regulations laid down has to be complied with. This was how security token came to lime-light, it's very much similar to equity token some people call then that, they are very much similar.
Their similarities are genuine as a result of traditional stock, now let's say you bought a stock and invested in a film/company back then your expectations is to gain massive profits thus return on your investment, the most important is to make your buys in a reputable company so that you can massive gain your divident from the purchased shares, by so doing the will get the right and voting strength to aim massively.
Security token is very vital as a digital stock because it keeps track records of your ownership prior to the blockchain, as we may know security tokens doesn't give a voting strength.
Equity tokens; this token is more like a security token, but this particular one is been supported/assisted by a traditional assets in a form of a traditional companies like the real estate valuers you can as well make your shares purchases here, here the difference enshringed here is that the traditional stock is been displayed on a data base, but the security token is been displayed on the blocks of a blockchain.
One most important thing here is that it gives an great opportunity to companies to give out their voting rights directly to a particular blockchain and gain voting right directly, intense of liquidity it improves it massively, investment can't fall into liquidity and the transaction fees are been minimized.
Non-fungible token; this token is very important if you recall in rescent years this token has reached into the spotlight because many investors makes use of it, this token is tokenized and it's scarce prior to it's unique assets.
Non fungible token is very popular as a result of the various games that exists with the blockchain crypto-kitties, all this games gives you the lime-light to create out your own designated breed Unique digital games, It can be inform of a cat.
Now let's say you want to upgrade your pet be it dog or any other pet, what you need do is to make a payment for all the bells, and witness using your ETH.
every kitty you see is basically unique and possesses a set of collectibles, it exists on the Etherium blockchain, the blockchain itself protects the pets thus no intruder can make away with any kitty from the original owner.
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)
Nice question here I will go with pancakeswap it operates on the binance smart chain, it is a binance powered Exchange that is Decentralized on conjunction with BEP20 token's, in here you can provide basic liquidity to the pool and you can also do yield farming in here and in general you will gain some APY at the tail end, the higher liquidity you provide to the pool the greather your chances of aiming greather APY.
Placing your Leveraging unit on the so called automated market maker which is the AMM, the order book is been dashed away, this order book is been used by the centralized Exchange remember pancakeswap is basically Decentralized in nature,
Comparing pancakeswap to other platforms you will understand that the transaction fee collected here is very much in a cheaper, than what we have on the Etherium blockchain, we collect 0.20%, out of this almost 0.17%, goes directly to those who provides liquidity to the pool, it sound to been the reward they gain for providing tokens into the pool, some percentages too is been given to the pancakeswap Treasury almost 0.03%.
Pancakeswap has its own way at which you can make total use of it, first you need to connect your wallet to metamask, trust WALLET, etc, another thing is that you should have some BNB token right in your wallet, this will assist you pay some transactions fees.
Another thing you need to do is to make a choice, choose the designated token that you want to swap, by so doing enter the amount, it's designated token is BNB, that's the native token of I may say. After that you tap the swap botton then transactions will be initiated, apart from the swapping instinct it has other basic functionalities remember the protocols at which it operates is very much open.
CONCLUSION
From my assignment you will understand that there isn't much difference that exists between a token, and a coin, a token for me can be defined as an assets that is non-native, to a blockchain technology, a cryptocurrency that is built on a particular blockchain is a native of that blockchain, now let's say Ether is built on Etherium blockchain, Ether becomes a native of Etherium blockchain.
Tokens are been built on the already existing blockchain technology, while coins are basically based on blockchain network, this is one of their key differences.
Pancakeswap is a Decentralized platform that is built on the Etherium blockchain, it serves as a platform that provides liquidity, that means it operates in an open protocol, you can deposit your token in the pool and gets reward for doing that, I also highlighted how it can be connected to either Trust wallet, or metamask.
Many thanks to you professor @reminiscence01, I really learnt alot from your lectures trust me you did well.
Hello @kingcent, 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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