Crypto Academy Season 3 Week 8 - Beginner's Course | Understanding Tokens|| by @allan.fakeer

This is a great lecture on Token and Coins. This is interesting topic that help us to understand the difference between tokens and coins. We will able to understand the purpose of token creation. We will talk about tokens that are connected with different blockchains.

1. What do you mean 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)

Tokens are electronic or digital assets that are created on previously created blockchains. These tokens represent the services and unitalities in the structure of project. Few of us consider the Tokens and Coins as same asset. But These are different assets. As we know that building the own blockchain is very difficult, costly and time consuming.
If we want to create blockchain, then we should have advance level technicalities. But here is an opportunity for those developers who do not have advance technicalities and money to make their own blockchain, they can make their project on the already existing blockchain. In this way they create token on already existing blockchain.

List of five Tokens that are built on Blockchains.

Here we figure out five token that are built on the blockchain. We will discuss five token that are built on at least three blockchains as required in the question.

1. LINK Token that is built on Ethereum Blockchain
2. DAI Token that is built on Ethereum Blockchain.
3. REEF Token that is built on PolkaDot Blockchain.
4. BTT Token is also built on Tron Blockchian.
5. UNI Native Token of uniswap built on Ethereum Blockchian.

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

Tokens and Coins are two different crypto assets that are built on blockchain. Both are use to store the values and traded on different exchanges. We will discuss the difference between the Token and coin in table in order to better understanding.

3. Explain the different categories of tokens and explain its features.

• Utility tokens:

Utility Token are created, when project developers want to push their project on the roadmap. They created Utility token in order to made funds that runs their project. Utility token are issues to public by the Initial Coin Offering in order to increase the funds.
They collect funds on the behalf of issuing token in the form of cryptocurrencies like USDT, BTC and Ethereum. Individual who has token has right to participate in the project. He has right to make decisions in the project. Most of people buy tokens at the beginning in the hope that this project will make progress and they will get good profit on the half this progress.

• Security tokens:

Security token are use to create a link between the traditional currency and cryptocurrency. Security tokens are linked with shares and bonds of the traditional money. Security token make sure the ownership of an asset. Security token allows the investor to get the minor amount company shares. These tokens are having many features. Using these tokens, we can transfer our funds safely.
Transactions are executed very quickly and less cost is charged. We can also able to get dividend profit from the company’s profit. We can say that security tokens are just like the contract of our traditional system. But the difference is that it record is saved on the Blockchain.

• Equity tokens:

Equity tokens are made by the companies that is represent the share of the company. The person who has equity token of particular company has right to vote in company. He can make decision in company. We can purchase equity token of company; it represents the particular share in company. Share volume depend on the weight of equity token.
If company gets profit, then it transfers the amount (that is equal to weigh of equity token) of profit to equity token holder. This system is quite different from the traditional shares, because in this this all the activities are stored on the Blockchain Where are the transaction and immutable and transparent.

• Non-fungible token (NFT):

Like other digital asset NFT tokens are also digital asset. Real world object art work like music, videos games are represented by Non Fungible Token. People can buy sell these tokens online. As like other crypto currencies software NFT is also working on same software like cryptocurrencies. Now a days NFT’s are very popular in online buying and selling the artwork.
NFT is designed on the same programming channel where Bitcoin and Ethereum is designed. NFT is linked with Ethereum blockchain. Bitcoin and Ethereum are fungible tokens, it means that are they can trade with each other. But NFT is different from Bitcoin and Ethereum. A unique signature that makes NFT unable to traded with each other.

Features of Tokens

• Tokens are not centralized
• Process of token creation is very quick.
• They are transparent in nature.
• Trading is position through tokens.

4. Make your own research on any token place in question one. (write features of the token, the aim of the project)

I chose UNI token from token listed in first question. UNI is native token of Uniswap decentralized exchange that is built on Ethereum Blockchain Network. UNI Token issued by Uniswap in September 2020. UNI token is basically a governance token that is created by Uniswap exchange. UNI token allows its holders to vote and make changes and decisions in protocol according to it governance nature.

Features

• Uniswap has a liquidity centration.
• Fees of UNI is flexible.
• Decentralized in nature
• Governance is leading feature.
• Presented on the several exchanges.

Aim UNI Project

To fix the liquidity problems include in aim of Uni project. This project aims to make a very efficient market. UNI make trading without the interference of third party. They want to attract more investor and make huge and efficient market with the help of flexibility.

Roadmap of UNI

There are three milestones are achieved by Uniswap so far. The Frist version of Uniswap V1 was appeared among the market in 2018. And second its update version V2 is placed in market in 2020. And last one version 3 is recently launched in market.

Market Analyses

To analyze the UNI market, I choose coinmarketcap site. I search for UNI in search bar. It displays the following results in the figure. Price of UNI token at doing my homework is $29.07. Ranke of UNI token is 11.

Here is more information about Uniswap market. Here we can see the overall market cap, daily market cap, circulation supply and Volume of UNI token.
Here are calculations.

Here you can see market of UNI. It is listed on various exchanges like Binance, Coinbase, Huobi, CoinKu and Bitfinex. Here we can see the UNI pair with other currencies. All pairs are mentioned in the figure.