Crypto Academy Season 3 Week 8 - Beginner's Course | Understanding Tokens by @small-ville
What do you understand by Token
Before I will explain what is a Token I would first elaborate on what a coin is. A coin is a decentralised digital currency that is based on a blockchain and can increase in value and can be used for transactions. A coin is a native token of a blockchain and it is used to authorise transactions that are carried out in the blockchain.
A Token is a digital asset built for a project on a particular existing Blockchain and can only be used inside the ecosystem of that particular project. Tokens when created look for investors to help the growth of the startup and they achieve that through the popular crowdfunding method called the ICO(Initial Coin Offering).
Example of at least 5 tokens and identify the blockchain it is built on. ( give at least 3 different Blockchains)
| BTT (BIT Torrent Token) | Tron Blockchain(TRC 20) |
| UniSwap Token | Ethereum Blockchain (ERC 2o) |
| PancakeSwap Token | Binance Smart Chain (BEP 20) |
| BakerySwap Token | Binance Smart Chain (BEP 20) |
| Klever Token | Tron Blockchain(TRC 20) |
What is the difference between a token and a coin?
| 1. They are the native tokens used for transactions on the Blockchain | They are used only for transactions within the projects that are built on the blockchain. |
| 2. They are more complex and tiresome to create | They are easy to create because an already existing platform has been created which they will just have to be attached to |
| 3. They have their blockchains example ERC 20, BEP 20 and TRC 20 | They are built on other blockchains |
| 4. They can function as an independent entity | They are used for specific functions in their ecosystem |
| 5. Examples, Bitcoin, Ethereum andTron | Examples, UniSwap token, PancakeSwap Token and Klever Token |
Explain the different categories Tokens listed below and explain their features
Utility tokens
These are Tokens that are created to be used for a very specific purpose within the ecosystem in which they were built.
Utility Tokens can be bought with Coins but they cannot be used to buy coins.
Security tokens
They are like modern stock which are digital assets that can be traded and also can increase in value. Holders are granted profits and rights based on how the project tied to the security token has performed.
Equity tokens
They are similar to security tokens. They offer holders voting and ownership rights and they are also entitled to the company shares and profits based on their performance.
Non-fungible token (NFT)
NFT( Non- Fungible Tokens) are unique digital assets which could be art, pictures or videos, that are built on blockchains. they can be bought using coins but cannot be used to purchase coins because they are Non-Fungible. Holders wield ownership rights to these assets. examples are digital art, gaming assets, music ad videos.
Make your 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)
Klever
The Klever token is a digital crypto-asset built on the Tron Blockchain (TRC 20), it is native to the lever application which is used for the transfer swapping and mining of different crypto assets. It is used to authorise transactions on the Klever application.
The Klever application is a P2P decentralised application that is used to store, transfer, exchange, mine and buys digital assets. Because it is decentralised it does not restrict any user depending on location or race.
it is also used to swap other crypto assets on the platform and also hosts other decentralised apps.
The klever app has a price of $0.04216 and seats at the number 297 on the coinmarketcap. It has a Circulating Supply
3.40B KLV, a Market Cap $143,054,277, a Fully Diluted Market Cap $421,430,358 and a 24h trading Volume $1,320,536.
Features of the Klever Token
The Klever token is built on a decentralized blockchain which is the TRC 20,
It also has a decentralized exchange app which the Klever token
It is the native token used for exchange mining and swapping on the platform
It is Fundgible; this means that it can be traded or exchanged for another asset
Aim of the Klever project
The Klever project aims to make a simple user interface and a secure wallet exchange platform where users have multiple resources to carry out different activities related to crypto seamlessly without a presence of an intermediary, provide light speed transactions and offer military-grade encryption for security assurance. The Klever token was created for the use of staking, payment of fees, buying of tokens and crowdfunding on the platform.
Thank you professor @reminiscence01 for this great Lecture
Hello @small-ville , 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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