Crypto Academy Season 3 Week 8 - Beginner's Course | Understanding Tokens|| Homework Post for @reminiscence01 by @mayureshpandit
Namaste Friends,
Welcome to my homework post for @reminiscence01.
In this post, I would like to answer all the homework questions. Before that, I would like to thank @reminiscence01 to clear my concepts about tokens and coins. Earlier, I think coins and tokens are the same things, but I know the difference between token and coin after reading the post of @reminiscence01.
Homework Questions
- 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)
2)What is the difference between a token and a coin?
3)Explain the different categories tokens listed below and explain their features.
- Utility tokens
- Security tokens
- Equity tokens
- Non-fungible token (NFT)
4)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).
Q.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)
To develop cryptocurrency coins developers need to do lots of coding and taking care of validation and transaction it will cause a lot of development efforts and have to keep lots of security measures. To solve this problem there is a token concept in the cryptocurrency market. Tokens are also cryptocurrency but tokens are built on another coin platform and to validate transactions and for security, tokens are using the crypto coin blockchain network. This happens through smart contracts and token creators need to pay a certain amount to that coin platforms to validate the transaction.
The main reason for creating tokens instead of creating coins is to save the time of development and for better security of transactions without any maintenance of blockchain network. Developing crypto coin needs more effort and need to implement more security So most of the small projects choose to create tokens. There may be more purposes like rewarding their app users through the blockchain networks.
For example, You can rent a car from the dealer for that you need to pay some charges to the dealer but you don't need to worry about the car maintenance. This rental car represents the token and the dealer represents a crypto coin platform.
Some examples of tokens are given below with their blockchain platform.
1. BTT - Tron Blockchain
2. WazirX - Binanance Smart Chain
3. YFI - Ethereum Blockchain
4. STROMX - Ethereum Blockchain
5. JUST - Tron Blockchain
Q.2 What is the difference between a token and a coin?
I will show other differences in the below table.
| Coin | Token |
|---|---|
| 1. Coins can be mined. | Token can't be mined. Tokens are available in fixed quantities. |
| 2. Coin creation is not easy. It needs a lot of coding efforts | As compared to the coin token needs less coding efforts |
| 3. Coins Have their own blockchain | Tokens are always dependent on any of the blockchain |
| 4. Ethereum and Bitcoin are the two best examples of coins | BTT and Stormx are some examples of tokens. |
)
3)Explain the different categories token listed below and explain its features.
- Utility tokens
- Security tokens
- Equity tokens
- Non-fungible token (NFT)
Utility Token
Utility tokens are mostly used to buy any service on the internet. Best examples of utility tokens are BAT, BTT, etc. BAT tokens are used for mostly advertisement our goods and services on brave browsers and BTT is used to increased our download speed on the BitTorrent app. As you see the use cases of both the token they are actually used for services and peoples can use their utility token for easy transaction. In simple words, people just prepaid for the services which they offered Just like we buy amazon gift cards.
Security tokens
Security tokens are represented as financial assets. People will buy security tokens as a form of investment and Token create are pay some dividends or rewards to the token holders. Unlike the utility, Security token doesn't offer any services or products they simply do the promises of profit sharing.
Equity tokens
Equity Stokes are created by companies to raise funds from the public. People are invested in equity tokens and return, they just get ownership of the company. As you know the shares are simply as a share and here company and peoples both are in a win-win situation like the company can raise funds and people are getting ownership of the company.
Non-fungible token (NFT)
NFT is the most creative way of the token creator of the token attached token with some unique artwork, product, or masterpiece. Some people are starting selling their digital work also Like Jack Dorsey sell their 1 tweet using NFT and people are accepting this type of token because it's easy to transfer ownership and some people are selling their memes using NFT.
4)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).
BTT(Bittorent Token)
As we saw BTT is a type of utility token and the main use case of the token is to increase download speed but users can also enjoy other services like buying more storage for their files, advertising our website on BitTorrent software, by paying BTT tokens. Also, they provide proxy servicẹ to downloads the file.
After you are familiar with Its use cases I will like to share something about the BitTorrent token as It is based on Tron Blockchain which makes it a TRC-10 token. It was the most prominent token of the Tron blockchain. It is also available on a bunch of exchanges and you will be able to trade with its token. You will find the BTT token in the below exchanges.
Below are some look of BitTorrent application so you will able to know how its look
Their many future integrations will they do. As per their new announcement on their website they are integrated with Dlive video streaming platform where users can pay the rewards to streamers using BTT token and as per the official website they are planning some bigger events for the people who are holding BTT tokens in their wallet.
Conclusion
In today's homework task you will get information about tokens and coins in the crypto market Also I tried to explain the BitTorrent token projects aims and use cases. To get information about Bittorent token I surfed on their official websites and also saw their tweets on Twitter. I like to thank @reminiscence01 for providing such valuable resources for learning
Hello @mayureshpandit, 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 for giving me feedback,I will improve my skill in next class.