Steemit Crypto Academy Season 3 Week 8 Beginner Course | Understanding Tokens | By @tasmiya
Introduction
Hello friends how are you I hope you will be fine and leave a peacefull life. This is last home work task in Crypto Academy. Which is about understanding Tokens and Coins. This home work task for Professor @reminiscence01. He is a great teacher who explained this topic very simple. Lets starts our work....
Q:- 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) ?
A Token is defined as it is a type of Cryptocurrency. In Crypto it is a unique virtual currency which is created in existing blockchain. They does not have their own blockchain. It is a digital currency. We used Tokens for investment purpose.
Tokens are used for crowd sales and can also be used as a substitute for other things easily. Tokens are created,sold and distributed by the help of initial coin offering (ICO) . It is used to raise funds for crowd sales for daily purposes.
Examples of some Tokens and Blockchain
| Token | Blockchain |
|---|---|
| Uniswap | Ethereum blockchain |
| Tether | Ethereum blockchain |
| Terra Moon | Bitcoin |
| Dai DAI | Ethereum |
| Klever | Tron |
| Cake | Binance smart chain |
These are some example of some tokens and their blockchain.
What is the difference between a token and a coin?
The word Token and coin will be different. They are interchangeable currencies. These are two different concepts. In cryptocurrency many cryptousers confuse what is coin and tokens. Cryptocurrency is a medium of exchange unit of store value. There is a slight difference between token and coin.
| Token | Coin |
|---|---|
| Tokens are digital assets which is used as a method of payment inside project ecosystem | Coins is a digital money which are creating using encryption technique and store values over time. |
| Tokens does not have their own blockchain | Coins have their own blockchain system. |
| You can buy tokens easily with the help of coins | Coins does not buy with the help of tokens. |
| We can create Tokens very easily | Coins are very difficult to create for this purpose we have some knowledge of programming. |
| Tokens is a process of initial coin offering (ICO) | Coins becomes through mining. |
This is a small difference between Token and coins.
Explain the different categories token listed below and explain its features?
Utility Tokens
Utility tokens gives the holder access to the user in blockchain. These are initial tokens gives the user to the start and transfer funds. For the help of utility Tokens we access different services in blockchain system.
For Example
By the use of Ether and access the dapps and pay smart contracts on Ethereum platform.
Security Tokens
Security Tokens are traditional assets in stock and share that can be changed in digital token in blockchain. Security Token gives the user to owner rights in blockchain. For this we know the regularity and number of controling of trading. It gives you voting roghts in ecosystem. Security is also a digital tokens.
Equity Tokens
Equity tokens is like a traditional stock assets. These tokens gives some form of ownership in their investment and share. It stand for third party assets in blockchain. It is used to calculate percetage of the owner. Holders of equity tokens gives the ownership rights and get profit. It comes in many form such as stocks,futures,option contracts and tokinized ventures.
Non-fungible token (NFT)
Non-fungible tokens are unique items in digital representation. It gives specific assets and no standard values. We can not exchange one non- fungible token directly. Because it is a unique items and its has its own value. It represents photo,video and audio etc. It is also called cryptographic tokens.
Features of a token
- We can use tokens investment and trading use.
- Tokens are decentralized.
- Tokens is also a transparent.
- We can use token to store values.
These are some types and some features of tokens in blockchain.
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).
Uniswap Token
In this topic I will be explain Uniswap token. Uniswap is a decentralized token. It is built in Ethereum blockchain. We can exchange uniswap different cryptocurrencies and give low cost rate. We earn commision for this. According to Ethereum blockchain it is native token. It was developed in 2018.
According to coingecko.com show that its ranked number is 11, and its value is $28.05.
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It is worked with ERC-20 tokens. It was launching 16 september 2020 for the need of decentralized exchanges.
It is become very popular because of their automatic trading. The total supply of UNI is 1 billion and it is percently distributed as
60% to Uniswap goes to its users
21.51% goes to its team members
17.8% goes to its investors
0.69% goes to its advisors.
Uniswap token abailable on many exchanges such as binance and coinbase pro. We can buy and sell uniswap many exchanges for trading. We buy and sell uniswap for our uses. It is very easy exchanging.
Features of Uniswap
It is a decentralized platform in its uses. It is a tradeable token. uniswap was built on Ethereum blockchain. We simply says that it depends on Ethereum. It is used for automativ trading.
Conclusion
In this topic I learnt many things. For this I learn tokens and coins simply. It increase my knowledge and professor @reminiscence01 was explain this topic very well. He is a good experienced teacher. Thanks for this topic
Cc:
@reminiscence01
Hello @tasmiya, 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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