Steemit Crypto Academy Season 3 Week 8 - Beginner's Course | Understanding Tokens by @bavo3
Good day steemians. Best regards to professor @reminiscence01 for taking us through this great lecture for season3 week8 of Steemit Crypto Academy. From the knowledge I got from the lecture, below is the entry for my homework task.
What do you understand by token?
Tokens refer to certain digital assets which are built or facilitated on top of other crypto currency blockchains.
Tokens have a vast range of functions. For instance, it aids in decentralized exchanges to trade items in video games. Thus, tokens can be traded or held just like other crypto currencies. You will encounter the use of tokens if you develop an interest in decentralized finance (DeFi). Unlike Bitcoin, which has its own blockchain, tokens such as uniswap and chain link run on top of existing blockchains. Most of the tokens are built on top of the Ethereum blockchain.
The the table below are examples of tokens and the blockchain they are built.
| Token | Blochain built on |
|---|---|
| Winklink | Tron |
| Compound | Ethereum |
| FTX Token | Binance chain |
| Dai | Ethereum |
| Decentraland | Ethereum |
| Uniswap | Ethereum |
Difference between token and coin
Due to the usual confussive of a coin and a Tron, I present to you in the table below the difference between a coin and a Tron.
| Coin | Tron |
|---|---|
| 1. They are built on their own Blochain network | They are built on already existing blockchain |
| 2. Mainly used for payment processing. | Are capable for multiple needs. |
| 3. More tedious to create | Less difficult as compare to coin. |
| 4. Distributed through mining | popular through ICOs |
Explanation of the following;Utility token, Equity token, Security tokens and Non fungible token(NFT) with their features respectively
Utility token: Utility tokens are built in order to make access to a particular product or service. For instance, filecoin platform could be access by FIL token.
Features
- Accessibility
Equity token: Is a special type of security token which tracks a typical share in either third party asset or venture and take part of the success or failure. It stores and and corporate ownership on a block chain.
Features
- Corporates ownership
- Records data on blockchain
Security Token: This allows the accessibility by storing personal information electronically. The builder puts security token into the system to allow the network system being protected.
Features
- Allow accessibility
- Stores personal information
Non Fungible Tokens (NFTs):
NFTs contains the ownership right to a unique digital or assets of the real world. They make it more difficult for digital creations to be copied and shared.
Features
- Ownership right
I choose to write about decentraland.
Decentraland is a platform which is built on ethereum blockchain through which users can buy,monitize and build virtual applications which are real. Through the virtual platform, virtual land can be buy by users which would in turn gives them control and ownership over the applications they create and the environment within their land.
Decentraland was created by Esteban Ordano and Ari Meilich in 2015. It initially started as pixelated grid which assign pixels to users via proof-of-work algorithm.
For the network to foster and bring new users, a variety of contests hosted by decentraland foundations to create applications,games etc and rewards as a result given to content creators. Again Mana tokens were given as allowances to new users in order to facilitate their immediate virtual economy.
Launch
It was august, 2017 that decentraland completed its initial coin offering(ICO), and almost $24 million worth of BTC,ETH and others were raised.
From the coin market cap, this was the overview of the tokens
Since I am looking for Decentraland, I scrow down to locate it which was rank at 27th by the time I was taking this screen shot.
After clicking on the decentraland, I was able to see the overview below
Conclusion
My final regards also go to @reminiscence01 for taking us through this wonderful lesson.Through that, we have enlightened about tokens and how they differ from coins, as that was very confusing to me before this lecture.
CC: @reminiscence01
I'm appreciate @cherub27, very courageous.
You're welcome
Hello @bravo3, 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:
Observations:
Why are you mentioning Tron?
Recommendation / Feedback:
Thank you for submitting your homework task.