A token is a type of digital currency that is used to denominate digital currencies. It is an exchangeable asset or utility that exists on its own blockchain platform and can be used for investing, privacy, and economic purposes by the holder.

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Tokens are developed and offered to the general public or a specific group of people through an Initial Coin Offering (ICO). They can be used to store value or to perform specific network-defined functions. They are intended to be used to describe a function rather than to be utilized as money. Fiat currency, such as the naira, represents value but does not have worth in and of itself. Tokens are a sort of cryptography that consists of a series of long lines of numbers and letters that indicate the cryptography used in a transaction. To summarize, tokens are used to express a variety of functions and values.

Five Tokens

1. Bittorent coin (BTT) : BitTorrent currency (BTT) is a Tron-based token that follows the TRC-10 token protocol. The token is used to provide file sharing preference to individuals who pay BitTorrent coin to file sharers. This also provides a financial incentive for file sharing to retain their files on the network.

2. Binance USD (BUSD) : BUSD is a new stablecoin that is pegged to the US dollar at a 1busd equals 1 usdratio. Binance USD, like other stablecoins, was developed to make decentralized finance (DeFi) transactions easier. The coin was one of the first stablecoins to be approved by the New York State Department of Financial Services (NYDFS), making it easier to buy and trade in the United States.
   BUSD uses BEP-20 and Erc-20. It's stored in a number of Paxos reserves across the world. The objective of busd is to use blockchian technology to keep the dollar stable.
   BUSD is a currency that may be used to pay for products and services. BUSD can be used as a loan asset and also as collateral for a loan. Busd can easily be sent from one party to another for a minimal transaction fee.

3. Pancakeswap (CAKE) : PancakeSwap is a decentralized exchange that enables you to exchange cryptocurrencies and tokens without having to go through a broker who keeps your tokens for the duration of the transaction. It is based on automated smart contracts that have been put on Binance Smart Chain, Binance's blockchain ecosystem. Despite the fact that Binance runs a centralized exchange, it has no control on PancakeSwap's operations, which were created by private developers. The service has a close looks and feel to Erc-20's popular Uniswap. Although you can transfer tokens from other platforms over to Binance Bridge and "wrap" them as a BEP-20 token for trading on the decentralized exchange, PancakeSwap is just for BEP-20 tokens operating on Binance Smart Chain.

4. Chainlink (LINK) : Chainlink is a decentralized oracle system that feeds factual data to blockchain smart contracts. Smart contracts are pre-specified blockchain agreements that evaluate data and execute automatically when specific circumstances are satisfied. The newtork's native currency is LINK tokens. It operates on Erc-20.

5. Tether (USDT) : Tether is a cryptocurrency whose value is intended to be similar to that of the US dollar. The aim was to achieve a stable cryptocurrency that could be utilized in the same way as digital dollars could. Tether is the most widely used stable coin, and it can even be used to substitute dollars on several famous exchanges. Investors who wish to escape the extreme volatility of other cryptocurrencies while maintaining their money in the crypto market utilize this. Usdt is the local currency and it operates on Erc-20.

Difference Between Token and Coin

1. Coins are digital financial assets that function similarly to traditional currencies in that they can be exchanged and used for trading. Tokens are virtual financial assets that operate as a representation of actual financial assets rather than being the actual financial assets like coins.
2. The purpose of each coin's own blockchain is to identify it from other coins. While this is not true for tokens, they are built on the same blockchain and entered into it.
3. Most cryptocurrency currencies employ bitcoin's core structure, with some additional coding and modifications to the framework to bring different and innovative features; the differences are what distinguish a coin from other coins that use the same structure. All of the coding and programming is done from the start to the end. So that existing technology can be improved and made more efficient. While no changes to the programming or additional coding are necessary for the creation of a token, all tokens use the same codes for their blockchain entry.
4. It is quite challenging to make a coin because the development of cryptocurrency coins necessitates starting from scratch with programming and coding; in contrast, tokens are much easier to create than coins and employ the same set of codes and programming.
5. Coins have been coded to be self-contained. Coins can be used as a medium of exchange and a unit of measurement for digital financial assets, as well as for trade. Tokens, on the other hand, cannot exist independently and are merely representations of assets rather than genuine financial assets. They needs a separate platform in order to function.

Utility tokens

Utility tokens are embedded into an existing blockchain protocol and are used to access the system's services. They were not designed to be used for direct investment like security tokens, but they can be used to pay for services on the Blockchain network. Utility tokens have a specific role in the network: they are used to power network activities. Utility tokens are traded in the hopes of receiving some benefit, To develop dapps on the erc-20 network, for example, you'll need ether tokens to create and assess the decentralized program. The more demand there is for the protocol, the greater the price of the token and the project as a whole will be.

Equity token

Equity token is used in the form of ICO (initial coin offerings) for blockchain based projects. Though there are some uncertainties surrounding its legal and regulatory status. Individuals who hold equity token have some form of ownership in their investments. It represents a third party asset or property in most cases. Equity tokens was created through the emergence of blockchain technology and companies considered that they could carry the model IPO (initial public offering). Equity and security tokens are the same but security tokens ownership rights are real than equity token. Some benefits of Equity tokens includes: It allows you as an holder to maintain and control or to give control. It maintains its value as long as your company maintains its operationsIt allows investors interest to be aligned with the interests of the company.

Security tokens

Security tokens work in the same way as conventional securities. It implies that you own a fraction of a cryptocurrency.
Security tokens are given to buyers when an initial coin offering (ICO) is completed. Security token holders in a project are entitled to certain benefits as well as a portion of the company's cryptocurrency. The value of security tokens might rise or fall in accordance with the performance of the project, just like stocks and shares.

Non fungible tokens

Non-Fungible Token is a single token that is encrypted and not interchangeable on the blockchain network. It's a one-of-a-kind and exclusive asset. The Blockchain protocol is used by NFT. Cryptographic storage of all visual (pictures, video, etc. ), written (journal, essay, etc.) and audio works in digital format is possible with this technology. They're typically employed in collections and other areas where digital ownership is required. In online games, digital collectibles, artwork, and digital objects all contain cryptocurrency. NFTs can be anything from a work of art to a statue to a football card.

Pancakeswap

PancakeSwap is a decentralized exchange that enables you to exchange cryptocurrencies and tokens without having to go through a broker who keeps your tokens for the duration of the transaction. It is based on automated smart contracts that are deployed on Binance Smart Chain, Binance's blockchain infrastructure.
Despite being a centralized body exchange, Binance has no control over the operation of pancakeswap. Pancakeswap and uniswap are nearly similar, with the exception that uniswap runs on Erc-20 whereas pancakeswap operates on Bep-20. Uniswap is an Ethereum DEX.
Instead of using the barter system, where you have to find someone who wants your token and you need his token, PancakeSwap uses smart contracts to lock users' tokens into a liquidity pool, where anybody can do the swap you desire, and users who keep their tokens in the pool are rewarded.
The aim of PancakeSwap is to reduce middlemen cut from centralized exchanges so that other users can benefit more. People that keep their tokens locked up for a long time will be rewarded more than others, especially when it comes to some of the liquidity pools and transactions.
Pancakeswap DEX also lets users to invest in Syrup Pools, which offer increasing payouts. For example, by keeping the token in the Syrup Pool over time, you can stake CAKE and win additional CAKE.
PancakeSwap has certain prediction markets features, such as betting on whether the price of Bitcoin will climb or fall over a certain amount of time, a lottery feature where users may buy a ticket in the hopes of winning a large windfall of CAKE, and users can easily purchase nft products.
The ethereum-based uniswap is pancakeswap's main competitor; uniswap has a higher trade volume than pancakeswap most of the time.

Cc: @reminiscence01