Steemit Crypto Academy season3 week8 - Beginners course Understanding Tokens home work task for Professor @reminiscence01

Hello everyone,
I want to thank @reminiscence01 for the nice lecture put up which is understanding tokens and here is my home work task that I have researched about.

1. What do you understand by token and give an example of at least 5 tokens and identify the block chain it is built on. (Give at least 3 different block chains)

The term token is found in the crypto currency system and is referred to as a virtual currency created in the existing block chain.
This means that these token system have no block chain of their own unlike the coins. They are spread through the initial coin offering and so here an investor’s asset is meant for a certain purpose in the block chain.

Below are the examples of tokens and the block chain they are built on.

Tokens	Block chains they are built on
1. Uniswap token	Ethereum block chain
2. Tether token	Ethereum block chain
3. Klever token	Tron block chain
4. FTX token	Binance block chain
5. Bancor token	Ethereum block chain

The tokens have some different types and are as below;
•Equity tokens
•Security tokens
•Utility tokens
•Non-fungible tokens
•Reward tokens

2.What is the difference between a token and a coin.

•Token can be easily created since they don’t have a critically mean of make. While a coin is difficult to create because it needs experienced personnel to make them.

•Token does not have it’s own block chain and so it isn’t built on an existing one for example a tether token that’s built on Ethereum block chain.While a coin exists on its own block chain forexample a bitcoin which makes it a native coin of block chain.
So according to my research this is the difference between a token and coin as discussed above.

3.Explain the different categories token listed below and explain it’s features.
•utility tokens
•security tokens
•Equity tokens
•Non-fungible tokens(NFT)

Utility tokens
In this category of token users create them in a block chain with an aim of developing or forming new projects on the block chain.
It’s feature is that as long as they are created they help users to get access to services on the block chain.

security tokens
These connect both traditional assets and digital tokens and they are refer to as digital transformation of traditional assets and are found in the block chain.
So they help users earn profits from the projects on the block chain.

Equity tokens
To my research I saw that these tokens are similar to the security token so in a way that they are both traditional assets. So they also enable users earn profits Fromm the project so on the block chain.

Non-fungible tokens
Firstly these are unique from the other tokens and they deal with the goods and service. These are represented in a digital way on the block chain where goods and services can’t Ben interchanged.

The features of token are as below;

•Token has a decentralized system where by they are on their own.
•Token is used for trading purposes forexample In the non-fungible tokens.
•Token doesn’t have it’s own block chain forexample the uniswap token that’s is found on the Ethereum block chain.

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)

Among the tokens I decided to choose the uniswap token
Basing on the coin market cap, This token was created in 2018 by Hayden Adams and at first it was called unipeg where later it adopted the new name called uniswap.
Uniswap token is built on the Ethereum block chain where it is ERC-20. It plays a role in automated token trading which solves the issue of liquidity in the block chain.
This token is available on the different exchanges that is to say binance , coinbase, among others.
uniswap chart

The features of uniswap token are as discussed below;
•Uniswap token can be traded anywhere at anytime in the market since it is seen in different exchanges.

•Uniswap token is a decentralized project since it uses a peer to peer system.

•Uniswap token is built on the Ethereum block chain.

•Uniswap token also uses automated protocol which controls liquidity.

The aims of the uniswap project
This project aims at self reliance and development it has a decentralized system in the block chain.

In conclusion therefore I want to take this opportunity to thank @reminiscence01 for this wonderful lecture really I have gained more knowledge about the tokens and also coins in particular.