Crypto Academy Season 3 Week 8 - Beginner's Course | Understanding Tokens

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TOKENS

Tokens in the world ofe crypto are distinct and unique and can be seen as a virtual currency usually created in a registered or existing blockchain, they don't exist on their own as they don't have their own blockchain.

Tokens represents a stake or an asset owned by investor's which ate assigned for a precise purpose in their blockchain.

It is created to aid or facilitate the development of a cryptocurrency project, which can be also used for the purpose of investment purposes, for purchasing, training,and a measure of storing of value.

Tokens have been spread along the plains by the use of the process of initial coin offering (ICOs)

Types of Tokens

. Utility tokens
. Reward tokens
. Non-fungible token (NFT)
. Security tokens
. Equity tokens

Here are examples of some tokens and the blockchain they are function on

TOKENS THE BLOCKCHAIN THEY ARE BUILT ON

1. Klever: Tron
2. Bancor: (BNT) Ethereum blockchain
3. FTX Token: Binance Chain
4. Everipedia: EOS
5. Tether: Ethereum blockchain
6. Uniswap: Ethereum blockchain

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

1. Tokens do not possess their own blockchain, they are usually built on a registered and existing blockchain. An example of this is the Tether token built on Ethereum blockchain while Coins have their own block chain they exist dependently, that is they exist on their own blockchain, they are the original or native coin of a blockchain. An example is the ETHER on the ETHERUEM blockchain.

2. Tokens are not difficult to create in other words they are very easy to make. While Coins are very difficult to create as it takes or involves only individuals with programming prowess and experience to initiate this .

3. Tokens are spread by means of initial coin offering (ICOs) while Coins are known through mining.

3)Explain the different categories token listed below and explain its features.

. Utility tokens
. Security tokens
. Equity tokens
. Non-fungible token (NFT)

UTILITY TOKENS
Utility token are usually created by users in a blockchain with the intention or hope of initiating or developing a project on the blockchain. The creation and development of the this token helps the creators to access precise and specific services and products that are found on the blockchain.

For example, a user can deposit a coin like Bitcoin for a smart contract to be performed that is on the Bitcoin blockchain.

SECURITY TOKENS
Security tokens are also seen and regarded to as transformation of digital traditional assets in a blockchain.

Security token is a bridge or a linkway that connects digital tokens to the traditional assets.

They are similar to the traditional stocks and share,in the sense that holders of security tokens do not possess only ownership right but equally have the entitlement to receives revenue in form of profits from the projects on the blockchain.

EQUITY TOKENS
Equity tokens is almost identical with the security token in terms of policy
The equity token Just as the security token, are like traditional assets. They are created to function as ahare or perhaps play the role of a share in the digital world. Holders of equity token are not only entitled to profit from the project but they equally have ownership rights.

NON-FUNGIBLE TOKEN (NFT)

Non-fungible tokens are unique assets or items which could come in form of goods and services like photos,audios, videos etc which are represented digitally on a blockchain. These unique items can not be exchange or interchange with others because each unique asset or item has its own intricique value.Holders of these items have ownership right too

Features of a Token
1 It is used as a measure to store value

2Tokens are used for both trading and investment purposes

3Tokens are decentralized and non-governmental in nature.

4 They are built on an existing blockchain

4)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 (UNI)
The Uniswap is a project built on the Ethereum blockchain which is decentralized in configuration and in nature. UNI is the original or native token of the platform.It function through the corridors of Ethereum as it is an ERC-20 token.

It was founded,created, and initiated in 2018. It was created by an Ethereum developer known as Hayden Adams who was the brain behind the creation of the Uniawap platform which was initially known as Unipeg.

Uniswap has become famous and gained a fair share of popularity due to the key and vital role it plays in automated token trading which helps in handling or solving the issues of liquidity.

Uniswap took a giant step in September 2020 in the aspect of creating,initiating and awarding its own token (UNI). This futher pushed their clients or user base up in other words it attracted many users to the platform.

The total supply of the this token is 1 billion.Currently the Uniswap token is presently shared or distributed as follows from the highest to the percentage to the least percentage

60% to Uniswap goes to users
21.51% goes to team members
17.8% goes to investors
0.69% goes to advisors.
Uniswap’s token is available on major exchanges such as Coinbase Pro,Biniance etc. for training purposes.

The Factory contract and the Exchange contract are the two smart contract Uniswap operates or runs on. The exchange smart contract is used for exchanging or perhaps swapping of token while the factory smart contract is used in the platform to initiate this new tokens.

Fundamental analysis of Uniswap token (UNI) on CoinMarketCap
Uniswap (UNI) is rank #10 on CoinMarketCap
Uniswap Price at the time of his research was $28.36 with a Market Cap ital price of $15,042,865,232; a trade Volume of $435887150, and a Total Supply of $1,000,000,000

Features of the Uniswap

1. It is founded,created and built on the Ethereum blockchain.

2. it's survival and functionality is dependent on Ethereum

3. It is a decentralized in nature meaning it is a decentralized platform.

4. The token is tradable.

5. It operates on both Exchange and the Factory contract.

6. It soves the issues of liquidity by using or operating with an automated protocol

Aim of the project

As a decentralized system, the uniswap platform it's major target is in the area of community growth and self sustainability.

Conclusiom

In conclusion we can say that Uniswap is vital and key as it helps in addressing or solving the issues of liquidity or liquidity issues by the functionality or the instrumentality of an automated market maker.

Thanks so much prof @reminiscence01 for this lecture i really appreciate