My greetings to everyone on this platform most especially my prof @pelon53.Thanks
for your post which is very educative. I have learnt a lot from it. I have been able to make further research and below is my homework answers.
WHAT IS A TOKEN?
In a layman's language, a token is a compensation given to a person for work done which is less equal to the work done.
The Dictionary meaning of a token defined it to be a voucher that can be exchanged foe goods or services, typically one given as a gift or forming part of promotional offer.
In the cryptocurrency world, a token is an asset that can be digitally transferred between two people using a wallet address. Tokens are created out from the blockchains of cryptocurrencies and are majorly used by new emerging companies as Initial Coin Offerings, ICOs. They are created for different purposes in this companies. There are many types and examples of tokens. The types of token include commodity tokens, equity tokens, security tokens, utility tokens, etc. Many of this tokens were created with Ethereum blockchain for different projects. Examples of tokens are the Juventus fan token, PSG fan token, ASR fan token, Barcelona fans tokens, BAT, Funfair, DAO, Slice, etc.
Utility token definition is a digital asset that is used to fund the network by assuring buyers that they will be able to xonsume the products of the network. Utility tokens are not same a coins. They are of value because of the function and properties they have within.
Utility tokens are the tokused for initial coin offering (ICO). This tokens are sold to fhe members of the community and a number of investors. The people who buy them are given rigjts to the products of company likn being the first to privileges
Many of these tokens are built on the Ethereum blockchain but some of them are still built specifically with other blockchains. Some examples of Utility tokens are: Funfair, Basic Attention Token, Brickblock, Timicoin, Sirin Labs Token, Golem. The uses of some of these tokens are briefly stated below
Basic Attention Token, BAT were creaated for advertising blockage, specific changing type of viewed ads or to earn tokens for viewing it. BAT promotes the perfect working of digital advertising by creating a brand new unit of exchange between publishers, adveetisers and people who use this services. It is built on the Ethereum blockchain and it uses a web browser called Brave (Brave is an open-source, privacy-centered browser designed to block trackers and malware. Brave utilizes blockchain technology to anonymously and securely track user attention). The token can be exchanged by the advertiser, publisher or user. ICO for BAT started in May, 2017.
Basic Information on BAT.
A security token is a token which serves as a binding contract between a buyer and the company in which the buyer gets profits from the revenue, dividends, or incresse inbthe market value of the token. Simply put, Security tokens are digital representation of shares in a company's stock. Security token is a way by which buyers of a token in an organization protect their interests and place in the company that created the token. Security tokens grants owners access to information in a system by simply inputting a code which authorizes the peesons identity that helps in gaining access to the system in question.
Single sign-on services also use security to log in to websites owned by other persons. . Disconnected tokens are not linked to the computer or network in any way; rather, the user enters the information from the token manually into the system. Connected tokens work electronically and automatically transmit information to the network once they're connected.
Security tokens come in many different forms, including hardware tokens that contain chips, USB tokens that plug into USB ports, and wireless Bluetooth tokens or programmable electronic key fobs, which activate devices remotely (for example, to gain access to a car or apartment building).
A common example on software security token is digital signature.
Digital Signature: This is a trusted handwriten private key known only to the person authorized to make the signature. This tokens allow secure on-board generation and storage of private keys enable secure digital signatures and can bd used for user authentication, as the private key serves as a proof of user identity. Examples of digital tokens are the steemit keys and passwords, the private and public keys of separate wallets, e.g trustwallet, tron wallst, ripple wallet, etc.
Equity tokens function more like a traditional stock asset. In other words, equity token holders possess some form of ownership in their investments. Their tokens represent how much ownership percentage they actually have. In most instances, equity tokens represent a third-party asset, property, or venture. Equity tokens come in many forms: Stocks, Futures, Options Contracts, Tokenized Real Estate, and Tokenized Ventures.
Equity tokens continue to see the most use in real estate crowdfunding platforms such as Atlant. These platforms allow investors to spread their funds more freely across the market. Real estate equity tokens represent a share of ownership in a particular property. This strategy enables investors to join multiple investments with less capital. Additionally, these platforms lower the entry bar for real estate investments and facilitate more market activity.
The common examples of equity tokens that can be seen on exchanges are Neufund, the elephant private equity coin, slice,BF Token the dao, and RRT Token.
Slice is a token used for commercial real estate investments for cross border investors that operate through the Slice platform. It was this platform that was tokenized to attract potential investors. The Slice Platform offers investors unprecedented liquidity to conventional real estate equity investments while creating attractive portfolio diversification tool to high net worth individuals. This combination allow Slice offer private market returns with public market liquidity.
Basic Information on Slice Token.
|Circulating Supply||83, 000,000SLICE|
CONCLUSION: Tokens are different from cryptocurrencies. They are created or produced for projects with the blockchains of major coins. such as Ethereum, Bitcoin, Litecoin , etc and are used for different purposes. Apart from the types explained in this homework article, there are still aome other types e.g commodity tokens, reward tokens, etc.
This is the entry for my homework. Thanks.