Steemit Crypto Academy Season 2: Week2| TOKENS| Home work for prof. @pelon53

Hello everyone!
Hope yo all are good and enjoying your lives in a good way.

Here is my homework task for professor @pelon53

The home work given by respected professor is as followed:

1.- What is Security Token? And explain an example.

2.- What is Utility Token? And explain an example.

3.- What is Equity Token? And explain an example.

Introduction

As we all know that Cryptocurrency can simply be referred to as digital or virtual currency that is secured by cryptography. It is a newly found digital asset and is distributed across many computers around the globe. A defining feature of cryptocurrency is that it is independent of any interference or manipulation of the government, which is attributed to the fact that the government does not play any role in issuing this currency.

A cryptocurrency is just a medium of exchange like the USD but differs in the purpose it serves and can be benefitted from in different ways. For example, you can use cryptocurrency to buy everyday goods and services and invest in them like you would in stocks or valuable metals.

Presently, Bitcoin changed history, making the ways for making advanced tokens utilizing blockchain innovation. This is how the appearance of the blockchain permits obtain specific attributes of digital forms of money. This innovation opens the chance to make more secure, more dependable tokens and to control their issuance.

Blockchain innovation produces cryptographic tokens. Numerous blockchains permit to make tokens, being the Ethereum stage the primary one, which uses Smart agreement to make tokens rapidly, straightforwardly, and in a simple way.

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WHAT IS CRYPTO TOKEN?

The term crypto token alludes to a unique virtual cash token or how digital currencies are designated. These tokens address fungible and tradable resources or utilities that live all alone blockchains. Crypto tokens are regularly used to raise money for swarm deals, yet they can likewise substitute for different things. These tokens are generally made, appropriated, sold, and coursed through the standard initial coin offering (ICO) measure, including a crowdfunding activity to support project improvement. Crypto tokens are a kind of cryptographic money that addresses a resource or explicit use and dwells on their blockchain. Tokens can be utilized for speculation purposes, to store esteem, or to make buys.

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HOW TOKENS WORKS?

You can have a crypto token that addresses a specific number of client unwaveringness focuses on a blockchain utilized to oversee such subtleties for a corporate store. Another crypto token offers qualification to the symbolic holder to see 10 hours of social media content on a video-sharing blockchain. Another crypto token may even address other cryptographic forms of money, such as a crypto token equivalent to 15 bitcoins on a specific blockchain. Such crypto tokens are tradable and transferrable among the different members of the blockchain.

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Let's move to answer the questions

Q1. WHAT IS SECURITY TOKEN?

Security tokens work as venture contracts wherein the buyer expects future benefits from profits, income offers, or market appreciation. Security tokens contrast from utility coins in several different ways. The fundamental contrast between these tokens is that security coins follow strict rules to buy these coins and their transaction.

Security tokens furnish members with a more straightforward venture insight. New companies offering security tokens should give financial backers plenty of legitimately required data like the organization area, fiscal summaries, business purposes, and the executives. All important bits of information to make sure about before making any speculation: while utility symbolic speculations can give this data, they are not legitimately needed.

EXAMPLE:

A cryptocurrency coin, like Bitcoin, Bitcoin Cash, and so forth, is an example of security tokens that exist on a specific stage, for this situation, A token addresses a resource or utility that an organization has, and they typically part with it to their financial backers during a public
deal called ICO (Initial Coin Offering).

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UTILITY TOKEN:

A utility token is an extraordinary sort of token that helps promote or finance projects for new businesses, organizations, or venture advancement gatherings. El kind of token called a utility token, utilized as a defend for interest in mass deals to raise capital on a task. Utility tokens fill a particular need inside the stage. Also, they don't deliver financial backers any profits or income share for holding the coin.

Utility tokens and Security tokens have numerous likenesses. The contributions in the two gatherings are indistinguishable. They are overseen by contracts, can be shipped off-blockchain addresses, and are exchanged on trades or through distributed transactions. Where they contrast is principally in the financial matters and guidelines that support them. They can be given in Initial Coin Offerings (ICOs) or Initial Exchange Offerings (IEOs). The goal that new companies or set up activities can crowdfund the advancement of their biological systems.

EXAMPLE:

The most famous illustration of utility tokens is the ERC20 ethereum standard. To find out about the ERC20 standard, read our guide here. Organizations have utilized the ERC20 standard to construct tokens for their DApps and dispatch their ICOs.

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EQUITY TOKENS:

Equity tokens work more like a conventional stock resource. As such, equity token holders have some type of proprietorship in their speculations. Their tokens address how much proprietorship rate they have. In many occurrences, equity tokens address an outsider resource, property, or adventure.

Equity tokens share similar conventions as security tokens. However, soon, you can hope to see equity token explicit norms arise. For now, security token conventions can play out every one of the important capacities needed by equity tokens. Furthermore, ERC-based equity tokens acquire a touch greater interoperability when contrasted with what a future equity token standard may incorporate.

EXAMPLE:

Some current instances of organizations that have completed ETO and deal with the value token are the accompanying:

1. Neufund
2. The Elephant Private Equity Coin
3. Slice
4. Document
5. BFToken
6. The dao
7. RRT Token

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I hope you understand the topic and enjoyed reading it.

regards.

@attiyaasghar

respected mention

@ pelon53