Crypto Academy Season 3 Week 8 - Beginner's Course | Understanding Tokens by @marianaceleste
Task of Week
A big hello to the whole SteemitCryptoAcademy community and especially to the teacher @reminiscence01 who once again gave a precise and clear class regarding the topic of the week: Tokens.
Grateful to @reminiscence01 for his time and dedication invested to educate us in the world of cryptocurrencies.
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)
Tokens is a term often used in cryptocurrencies and can be defined in this world as digital assets created to represent anything in the real world and must be developed on any platform that allows it to perform its function, which is to represent what it was created to represent. In this case that platform is the blockchain (not its own).
The term token in everyday life means objects or materials that have no legal value. Such is the case of the tokens used in the casino that inside the casino can be exchanged for real money and have a value, but outside the token alone can not buy any kind of goods. Such is the case with cryptographic tokens.
Tokens are generally created by private companies, who make their initial sale at very low costs and with a defined project. Once this project starts to gain momentum, the price of the token increases in value.
Some examples of tokens with the blockchain on which they were developed are:
Tokens: EOS tokens
Blockchain: EOS tokens
Tokens: WAVES tokens
Blockchain: Waves
Tokens: NEO tokens
Blockchain: NEO
Tokens: Woonkly Power (WOOP)
Blockchain: Binance Chains
Tokens: Raydium (RAY)
Blockchain: Solana
Tokens: Telcoin
Blockchain: Ethereum
What is the difference between a token and a coin?
These terms tend to create confusion because we tend to use them as synonyms, but the truth is that they are not the same.
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Their main differences lie in what they represent and the basis on which they were created, i.e., the token was designed to represent different things in the real world, such as a means of payment:
The token was designed to represent different things in the real world, such as a means of payment, the action of a company, to be used in decentralized applications, it can even represent a house or any type of goods. As for their creation, they are developed on non-proprietary blockchain platforms.
While coins or cryptos were developed on their own blockchain so they are self-sustaining and also designed to specifically represent a medium of exchange.
Tokens can encompass many things and depend on third-party platforms, while coins represent something specific and are developed on their own blockchain.
Explain the different categories token listed below and explain its features.
Utility tokens
These are unregulated tokens, which allow users to access products offered by businesses or private companies. The operation is as follows: companies offer these tokens to obtain financing for their projects, and once the project is underway, investors or users can exchange these tokens for what was previously offered. Obviously, this type of tokens has its risks. However, if the project grows, it generates profits because the cost at the beginning (investment) is lower than the price limits it can reach.
Among the characteristics are:
- They are not regulated.
- They have high risk rates because if the project fails, the token has no value.
- Token holders do not have any decision-making power.
Security tokens
These tokens represent the exchangeable assets of a company in real life but under blockchain technology. Many companies have been interested in this form of exchange because the costs and protocols involved are much lower. These tokens are very safe because they are given within the legal framework of each country, and under a reliable technology.
Among the characteristics are:
-They are regulated in a decentralized manner as it is based on the blockchain.
-The holders of this token have rights in terms of decision making and dividends.
-Holders of these tokens have obligations also within the legal framework.
-The tokens can be transferred from one user to another immediately.
Equity tokens
These tokens are also regulated by the law of different countries, since they represent an asset or shares of a company in real life. By some authors it is considered a type of security tokens due to its nature.
The main characteristics are:
-The holders of this token are entitled to the profits of the company.
Investors have voting or decision-making power within the company.
-They are regulated by the law of the country where the company is developed.
-They are exchangeable.
Some equity tokens are: Domuco and RRT Tokens.
Non-fungible token (NFT)
This type of tokens is becoming more popular nowadays due to NFT games.
Non-fungible tokens are tokens that represent something unrepeatable and unique, which can be validated as such through smart contracts. It can represent a work of art, a character from a game or any other item of a unique nature and can also be considered collectible. They cannot be interchangeable because it is assumed that there is no other thing equivalent to them.
Contrary to popular belief, the price of NFTs does not depend on the rarity or exclusivity of the NFT, it depends on how users interact with them.
Main characteristics:
-They are unique and unrepeatable.
-The operation of these tokens depends on their use.
-They are validated through smart contracts of the Ethereum network or any other network that supports this type of contract.
-They are easy to trade.
-They have something negative and that is that they can lend themselves to art theft.
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).
Telcoin is a token developed under the ERC-20 technology of the Ethereum blockchain, which seeks to make a fusion between blockchain technology and telecommunications companies. It was created only in 2017 by Claude Eguienta and Paul Neuer in Japan.
In the following link you can see Whitepaper Telcoin where you can find all the relevant information about the project.
Despite being on the Ethereum network, it offers very low commissions for its transactions. This token can also be obtained on platforms such as HitBTC and Kucoin. However, the distribution of this token is done through the subscribing companies, which in turn sell the tokens to the users.
With this token it will be possible to make phone recharges or online payments from the Telcoin support.
Currently in the CoinMarket platform is in position 89 with a coin value of $ 0.018552 USD with a trading volume of 24 hours of $ 13,054,609 USD.
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It has social networks such as twitter where they give information and news more relevant to the evolution of the project:
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Conclusion
It is very important to be familiar with the terms used in the cryptographic world, especially if they are very similar terms, in order to avoid confusion.
Tokens have a more extensive use with advantages and disadvantages while cryptocurrencies have a more defined purpose and are self-sustainable.
Translation made with DeepL
All the content of this text is authored by @marianaceleste, with original stamp for the steemit platform.
The banner and images were edited with the canva application by @marianaceleste.
Link Twitter
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