Hello everyone it’s a great pleasure to participate in this task and great appreciation go to the professor for taking his time to come up with such a wonderful class
1)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)
According to my own understanding, Tokens are digital assets built on an existing blockchain that represents a service in the project.
A token is a digital asset issued out to the public through presale to help finance the project and also serve as a stake in the project and governing token in the platform
A token belongs to a blockchain in address and it is a cryptocurrency
Examples of tokens
Uniswap is an example of a token and it's built on the Ethereum network blockchain.
Kelever token is built on the Tron blockchain
KARAMA is an example of a token and it's built on the Eos network blockchain.
Bancor token is built on the Ethereum blockchain
Tether token is built on the Ethereum blockchain
FTX token is also an example of a token and it's built on the binance chain network blockchain.
link is an example of a token and it's built on the ethereum network blockchain.
Winklink is an example of a token and it's built on the tron network blockchain.
Reef is built on the polka Dot network blockchain
2)What is the difference between a token and a coin?
A coin can also be referred to as a cryptocurrency that has an independent blockchain and designed to achieve a certain goal for example bitcoin.
A coin is a cryptocurrency used for payment of services with in the blockchain.
Differences between a coin and a token
|Base on their native blockchain network||Base on already built existing blockchain network|
|They are difficult to create||Simple to create since they are built based on existing blockchain|
|Are used as payment services||Are used for desired needs|
|They are native cryptocurrency on the blockchain||They already exist on the blockchain for example ERC|
|Are used as payment services with in the blockchain like ether||They depend on the project platform order of use|
|Are used as a gas fee to carry out transactions across the ethereum blockchain such as ether||They build on the ethereum blockchain|
|They serve as a fuel to transfer tokens built on the binance smart chain||They build on the BNB known as BEP token|
Similarities between a coin and a token
Both are digital assets
Both hold value and can be traded on the various blockchain exchanges
3)Explain the different categories token listed below and explain its features.
- Utility tokens are tokens issued to the public during presale to raise money to push the various projects. These tokens have a right to give the user a voting right to participate in making decisions in the ecosystem of the project platform and also provides the user with a stake in the project. Utility tokens are used for payment services for example the FIL token can access the File coin platform project.
Utility tokens are also exchanged into cryptocurrency
- Security tokens are traditional finance of cryptocurrency which allow investors to have part of the projects company shares. This tokens are recorded on the blockchain and are registered to another owner and they are just contracts like traditional securities. These tokens also work as proof of worlds asset investment.
- Equity means ownership of shares in the company. Equity tokens give investors voting rights and also a right to participate in decision making in the various project platform. Share holders of the equity tokens record dividends from the profit side of the company. They are also recorded on the blockchain where transparency and transactions are immutable.
Non-fungible token (NFT)
- These are unique tokens and they can be either virtual or real
These tokens can not easily be separated from other tokens of the same kind.
Features of tokens
security tokens have digitalised traditional stocks
Tokens are less costly
Tokens have digital assets that hold value and can be traded on the various exchanges
Tokens are built on the blockchain network and are decentralized
Tokens are traded on various exchanges such as coins, fiats and it can also be exchanged with other tokens
Tokens are used for investment purposes
Tokens are transparent
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).
According to me, I will talk about the winklink token.
Winklink was launched in 2019 and it's platform was known as TRONBet till July 2019
It consists of 12 founders who are believed to be Chinese by nationality
Winklink is a descentralised application on the blockchain network known as DAPP. It's traded on various exchanges such as Binance
Winklink was the first tron in the ecosystem network, it's built on the tron blockchain network.
Using cases for winklink, it provides trusted priced data for the platform since it's decentralized, swaps require a decentralized application in order to determine price predictions of the project.
Since winklink is a cryptocurrency, it can be used to make payments
The following screenshots are from source
Economic supply of winklink
Features of winklink token
The tokens are reliable
The winklink tokens are verifiable
The tokens are unpredictable
Winklink tokens have faster transactions
Aims of wink-link tokens
To represent investors stake in the company
For economic purposes
for investment purposes
To provide reliable data
Yo allow participation from nodes and developers
Tokens have been of great use to investors and the various participants who are are participating in the use of tokens because they are very fast and can be used for payment services such as paying electricity bills , water bills and many other payment services.