Crypto Academy || Season 3 || Week 8 - Homework Post for Professor @reminiscence01 || Understanding Tokens by @olachi
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 are Cryptographic programmable assets that can be created and also recorded on a blockchain that is already existing blockchain.
Tokens functions inside an existing blockchain to permit for the forming and implementation of special smart contracts that mostly provide possession of assets outside the blockchain ecosystem. Tokens can also stand for units of value which might include the real world things, e.g it can be money, digital assets, coins, and it can also be received and also sent.
For instance, the ERC-20 tokens, they exist on the Ethereum blockchain network. Ethereum as it may be is one of the most productive blockchain with higher number of tokens it has on it.
| NAMES OF TOKENS | BLOCKCHAIN |
|---|---|
| Augur | Etheruem |
| Just | Tron |
| Troy | Binance chain |
| Karma | EOS |
| Klever | Tron |
| Rarible | Etheruem |
| ShareToken | Binance chain |
DIFFERENCE BETWEEN A TOKEN AND A COIN
These two word are used to relate to the units of a blockchain value. But what they mean and the way it is been used overlaps much and most times they are interchangeably used but they have their differences.
Coins are independent But tokens are built based on Blockchain that is already in existence, and they are used differently.
A coins value is based on it blockchain. Therefore they are inter-changeable and can be used for buying and selling and can also be exchanged. Coins can be splitted in little monetary units with their value still been the same. They are tradable easily. One can exchange them at fair rate for fiat currencies. People who own coins can use it to purchase also goods and services.
Particularly tokens are concerned with (ICO) initial coin offerings. It's a recognized way of fund raising for new startups, with an organization developing and launching it's token. These tokens can be purchased by investors for future profits. The funds raised is then used by the organization to start up the project. People who own tokens are like shareholders. Sometimes an organization changes it token to a coin, with this people who own the token can swap it for coins and it can serve as digital money.
EXPLAIN THE DIFFERENT CATEGORIES TOKEN LISTED BELOW AND EXPLAIN IT'S FEATURES.
Utility tokens provides it's owners with access to a product, service that is in existence or still in development.
They’re most often used as a raising funds for Initial Coin Offerings as a placeholder for crypto coins the buyers will get when the new coins in due course gets to the blockchain. These tokens can be used to acquire also a goods or service provided by the developer. They exist on an existing Blockchain in way that the owners can get verified and they can be exchange easily.
Security tokens they provide rights and duty to securities e.g bonds and stocks. Security token shows a share in the organization that provides it. It can represent legitimate ownership of asset, like real estate and so on.
Security tokens are more controlled than the other tokens. Organization may provide security tokens in place of traditional shares of stock for cheap money raising, the tokens provide immediate agreement and trouble free cross-border trading.
Equity tokens are unique tokens, they are closely connected to security tokens. They act as traditional stock assets. They show ownership of some third party asset or establishment. Also its value is related with the success or failure of the asset.
Non fungible tokens (NFTs) exist on
established crypto platforms, and ETH is popular amongst them. These tokens have personal contracts that can be understandably distinguished from other tokens that exist.
Non-fungibility tokens is known for its uniqueness as its main attribute. A non-fungible token is special and there is no other in existence like it. For instance, a plane ticket is different in the sense that it identifies a specific seat, on a certain flight, at a given time.
- Anyone can buy and sell tokens
- These tokens can be traded globally
- Tokens created through an initial coin offering (ICO) can be used for fund raising for crowd sale
- Tokens can serve as payment or Investment motive.
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).
Rarible is a software that grants digital artists and also creators to provide and trade customized crypto assets that stands for ownership in their digital work. Rarible is also a market platform for assets, it's as well as a network created on Ethereum that allows trading in the absence of a middleman. It was established by Alex Salnikov and Alexei Falin and is stationed in Moscow, Is an open source market platform that allows it's users to create collectibles, sell, and mint. Any of its users can showcase their artwork in the market place.
Tokens generated by creators on Rarible are called non-fungible tokens (NFTs). With each NFT been unique, they cannot be interchanged.
Some examples of NFTs that can be found on Rarible’s market platform are memes, parcel of virtual land and digital artworks.
RARI is Rarible cryptocurrency, the token can be used by its users to vote proposal's concerning the platform, curate featured artwork and moderate creators. It can be purchased at exchanges like Uniswap, SushiSwap.
Rarible price is $23.33 USD, it's 24-hour trading volume is $9,231,204 USD. With a current CoinMarketCap ranking of #347, and a market cap of $109,004,413 USD. A circulating supply of 4,672,343 RARI coins.
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RARI tokens give it's holders different rights, like as providing for community voting where RARI holders can present and also vote on proposals, partake in moderation and curation. The company assess it's users proposal's before taking its decisions and finishing implementations.
Blockchain provides a different and special way for buying and selling about everything, and also current ways of verifying ownership of an asset. Crypto coins serves as the currency on the platform while and tokens serve in different ways of uses, with the potentials of secured sending and receiving.
Cc:
Professor @reminiscence01
Hello @olachi , 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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