Crypto Academy / season 3 / week 8 / understanding tokens by @rizwanwattoo

welcome to my homework post.This week prof @reminiscence01 informed us about two key crypto assests which is token and coin,and made the difference between two very easy.

I will try to solve the homework according to what i have explained.
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Tokens

Crypto assests used third party technology to complete their transactions called tokens these days the blockchain industry becoming more and more popular ,number of investors involve in blockchain industry and everyone want flexcibility according to their own interests.

Crypto tokens adapt to their program are transparent and have ability to work.

Crypto tokens are run by software programs that have their own specific agreements that cover the features of the token and its genius & network.

Most of the tokens perform their activities on ethereum blockchain.

Tokens & their blockchains

• Uniswap built on Ethereum blockchain.

• BitTorrent built on Tron blockchain.

• Klever built on Tron blockchain.

• Everipedia built on Eos blockchain.

• PixelTile built on Cardano blockchain.

• Wirex built on Stellar blockchain
  

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Tokens

• Tokens have not their own blockchain and used blockchain of another coin.

• Creation of tokens easy as compare to coins.

• used as payment method as well as for digital contracts.

• Tokens can be stored in their blockchain wallet like ERC20 stored in ethereum wallet.

• Every token have ledger support.

• safemoon,usdt etc are examples of tokens.

Coins

• Coins have their own blockchain e.g Bitcoin, ethereum.

• coins can be mined.

• work as currency or use as payment method.

• coins have a controlled supply.

• creation of coins is not easy.

• need seprate wallet for storing of each coin.

• few coins have ledger support but not all.

• Tron,Ripple & Dogecoins are exapmles of coins
  

Utility tokens

Those tokens used for blockchain based product called utility tokens they are related to blockchain economy.Number of utility tokens are ERC 20 run on ethereum blockchain.

TRC10 & TRC20 also available.

Some other utility tokens Golem (GNT) ,(BAT) civic (CVC) and (OMG)

security tokens

Security tokens is a digital assests in which information of any person or company can be stored electronically.

Issued by (STS) security token service.

It may consist on a password that the owner can prove that it is his asset.

This is an insecure thing that can be hacked.

Equity tokens

Equity tokens is the type of security tokens that represents a specific activity.The person or company who hold it can give a good profit and also gives an opportunity to express their views .It ETOs was provided to investors through various companies.

NFTs

A non-fungible token is those assests that cannot be interchanged for another.

For exapmle a picture which is in your mobile gallery captured by you is a non-fungible asset that have their own uniqueness.

ERC721 represents NFTs

Uniswap

features & Aim

If you build an account or hold any coin this all done in under your supervision and you have totally control on your assets,your data is not saved on the server.

AMM

Automated market maker this is very important feature in which if you are seller and you sudden need of buyer system automatically provide you and in reverse case you will also entertained.

This is all done through liquidity.

liquidity means if you have some more money then you can invest it here ,whenever a buyer or seller uses your money, he will pay his fee.
Uniswap is ethereum based network .It does not have its own platform and you have to access the exchange only through wallets.

You can use through metamask or trust wallet.

The feature I like best is liquidity
All screen from google

Conclusion

I have come to the conclusion that both tokens and coins have their own significance,and the growing traffic to cryptocurriences is largely controlled by tokens because tokens have some features that are quite common sence

So that was from me.

Thank you all for stoping by

Cc
@steemitblog
@reminiscence01