Greetings fellow steemians,

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P

Especially to members of the steemit crypto academy.
I will first like to congratulate prof @pelon53 on getting the position of steemit crypto professor.

Now let’s go straight to the business of the day.

Introduction

In the professor’s lecture he spoke tokens.

And after reading through his lecture, I will now look at completing the homework task.

Token

Tokens are meant to replace the work that currency do.

we can actually say that were currency is not available tokens can be used as a replace in the exchange of good and services.

Even though tokens do not have much accessibility and control like currencies they are usable assets .
Tokens do not have the permissions available like how currencies have legal permissions .
Unlike currency , tokens are issued privately which is why they have limited access.

Well it can be said that before a token is created it already has its given functions.
This token represents something in a given ecosystem.
This means that where tokens are used is where they are mostly usable.

A token issued from elsewhere is not useable in a different community.
Eg when we go into casinos to play cards we are given a type of coin, these coins are only useable on the table of cards, even in that same casino you cant buy a bottle of whisky with that coin unless you use a currency.
A token can range from anything. That is a book , songs etc.

Difference between tokens and cryptocurrencies

1.While crypto currencies is world wide accepted, tokens are only accepted in the community in which they were created and issued.

Eg. Btc is widely recognized for trade but a token is not.
Let's take the casino example once again.
So I can actually go into a casino and purchase a bottle of whisky with my btc but i cant use the casino issued token to purchase a bottle of whisky in or outside of the casino

2.Tokens are meant for specific purposes

whilst crypto currencies do a variety of things.
For instance, I can use my btc to purchase a variety of good but with a specific token I can only access 1 particular commodity in my given community.

3.crypto currencies use their own blockchain platforms whilst tokens use existing blockchains platforms.

4.Different tokens access different services so we can say that the functions of tokens are not limited whilst that of cryptos is limited because it is only used as a medium of exchange.

Eg the civic token is used for identification purposes but a crypto is only use as medium of exchange.

After explaining the concept of tokens, I will now answer the questions below.

1.What is a security token?

P

As its name suggests, this type of tokens' function is to regulate authorities and other bodies.
Security is a major concern for individuals and companies too.
Without an assurance of transparency when going making a transaction you feel insecure.
This is a major reason why a security token was created to tackle this sort of problem.

Security tokens are a type of cryptographic assets with similar features as an another cryptocurrency
This means you can gain profit by investing in a company's security token and at the end you are paid interest or dividends.
These tokens are actually issued as a type of investment, these security tokens are tied to financial values, which allows the tokens to work with the blockchain technology; working with the blockchain technology allows their digitization.

Why we need security token.

Security tokens provide companies and individuals with more transparency when making an investment.

**Security tokens act as an insurance.
During transactions, the investor know that there is a security token in place that has already checked to see if it is safe, so there is a kind of assurance that you will not be cheated.

Security token protect corporations too.
Security tokens do not only provide insurance for individual they also provide for corporations.

Example of a security token.

The tzero security token.

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Tzero is a security token that was launched to address the regulatory issues associated to ICOs .
The tzero is a blockchain based technology.

This particular security token was launched by internet retailer overstock.

What does tzero do?

Tzero ensures that when using biometrics to access your wallet, only you and your face can have access to it.

It also gives corporations a chance to register and issue tokenised assets onto a blockchain.

2.Utility token.

P
Utility tokens are tokens issued for accessing good or services on a particular community which they were issued.

Most utility tokens are meant to have just one function but they are able to do a whole lot of other things.

One can say these utility tokens are the basic building blocks of the cryptocurrency of such platform.
They carry value, and we all know that when something caries value then it can be exchanged in the market place or similarly kept.

Example of utility token.

The VLM utility token, which is known as the volume utility token.

The volume platform is were the VLM utility token is used.

Like I said earlier they are meant for a particular community but utility tokens have other function.

The VLM token is also an acceptable universal currency used on several blockchain networks.

What does the VLM token do.

The VLM token is used as a universal payment for services on other platforms.

3.Equity token.

P

These are tokens which give some sort of right of ownership to people that possess these token.
It's more like buying a share in a company, what ever profit the company makes after investment the share holders are let in on a certain percentage.
There are different types of equity tokens.
These are the stock, tokenized ventures and futures.

Example of utility tokens.

Media shower.
The media shower was launched in October 2018.

This platform allows companies to issue and create tokens.

This platforms main aim is to open the door for new investment opportunities

What media shower does?

It is a platform that is meant to provide better communication.

Conclusion.

The professor has made understanding tokens easy and after my research I am getting a grip of tokens.
Tokens are revolutionary and will continue to change the world for the better.

This is my submission on the professor's homework task.

Thank you.