Crypto Academy Week 10 // Homework for @pelon53; Tokens- About Security, Utility and Equity Tokens

INTRODUCTION

good day sir @pelon53 hope you are doing well sir? That's for your lessons on the security tokens so I made a research of my own and this is what I could come up with.

What is a security token?

What is a token?
A token is something of sentimental not a little value. It can also be defined as something serving as a sign it symbol of something else, token generally are always little.

What is security?
It has so many definations it can be a measure taken against theft, it can also be defined as a guarantee or assurance that an obligation will be met. Security is also knows as a defense against financial breakdown.

In other words a security token can be defined as as a symbol that a user must have before gaining access into a system. A security token act as an interface between the computer user and the computer system, they allow users to gain access into the computer system the token in security token can be replaced with the word password.

Source

Types of security tokens

There are 3 types of security token

1. Connected token: this type of token requires that the user must physically connect the token to the system

2. Disconnected token: unlike connected token token this dost not require physical connection of the token to the system

3. Contactless token: these tokens doesn't allow involve token to be connected to any systen. a good evample of this is the Bluetooth connection.

The security tokens work in different ways it can work in a form of setting a password or a code so before you access the system you must enter the code or password you set in case an unknown user want to gain access into your device the person wouldn't be able to do it cause he done thave the code or password unless you give it to the person.
It can also be in a way of scanning biometrics like your fingerprints or eyes e.t.c this method is even more better because for this to be possible you'll have to be there yourself.
and another is like a 2 factor authentication, cause even if other users wants to gain access to your system they will have to provide a code which could be sent to your registered mail or registered phone number which only you have the access to it.

Just as any security could be breached the security tokens can also be hacked which allows unknown users to gain access to your system, the system wouldn't even know you weren't the one that accessed it.

Utility tokens

The word utility means is quite related to public so the utility token cannot be owned by a single person instead it is used by a group of people, it can be defined as a token that allow users to have acces to the goods and services provided by a company or companies.
There tokens were developed so that the programmers could do more by creating more softwares in them or around them so the users can gain acces to the more softwares created using the utility token leats look at bitcoin for example, it's built in a way that other cryptocurrencies could be built around it like the litecoin is build around the bitcoin so whatever happens to the bitcoin will also have an effect on the litecoin.

An example is the B.A.T I.e basic attention token it is a measnt of paying creators for their published content it was blockchain platform that was created to help content creators to make an income out of their published content.

Equity token

What is equity?
It can be defined as the ownership interest of shareholders in a cooperation
So equity token can be defined as a token that allows people to have part of ownership over the blockchain.
While equity token offering (ETO's) can be defined as a means of generating money for people that have part of the blockchain. The equity token is also a part of the initial coin offering ,(ICO'S) and it has been said that the ETO's will be the best way of raising funds for individuals and companies who are involved in it.

Neufund is a good example of the equity token just like other tokens it is built under a blockchain, it is build under the Ethereum blockchain, they help to show the value of individuald or companies.
Equity token can be owned by individuals or company but this token is only owned by group of people or company.

Cc @pelon53
Cc @steemcurator02
Cc @steemexclusive