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2. Intermediate Course

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  1. 1. Ethereum 2.0 - What is it? 
  2. 2. What is cryptocurrency burning?
  3. 3. How to create your own cryptocurrency? 
  4. 4. Blockchain Oracle - what are oracles? 
  5. 5. How to make money with NFT?
  6. 6. What is an ERC20 token and how is it created?
  7. 7. The Metaverse – a new virtual world
  8. 8. Metaverse – TOP 15 virtual reality projects
  9. 9. Technical analysis – is it worth using?
  10. 10. What are DeFi liquidity pools?
  11. 11. Second layer (layer 2) - what is it? 
  12. 12. What are wrapped tokens 
  13. 13. What is the Lightning Network, and how does it work?
  14. 14. What are security tokens?
  15. 15. What is Play-to-Earn (P2E) and how does it work?
  16. 16. What are Social Tokens? 
  17. 17. Examples of the use of WEB3 on the blockchain
  18. 18. What is Web5? 
  19. 19. Ethereum London Hard Fork - what is it ? 
  20. 20. Segregated Witness - what is Segwit Bitcoin all about?
  21. 21. Polkadot - Decentralized blockchain and DOT cryptocurrency
  22. 22. Polkadot Parachain - Next-generation blockchain
  23. 23. Trading order types: stop loss, trailing stop loss, LIMIT
  24. 24. Set up of Stop Loss and Take Profit orders
  25. 25. What are Decentralized Cryptocurrency DEX Exchanges?
  26. 26. What is Curve Finance?
  27. 27. What is GameFi and how does it work?
  28. 28. Non-fungible tokens and NFT exchanges
  29. 29. Cryptocurrency steps - What is move to earn M2E?
  30. 30. What is Proof of Reserves (PoR)? How does it work?
  31. 31. Interoperability in the world of cryptocurrencies and blockchain
  32. 32. Blockchain and its layers - What is layer three in Blockchain (L3)?
  33. 33. What is Layer 0 in Blockchain technology?
  34. 34. What is layer 1 in Blockchain?
  35. 35. What is MakerDAO and DAI Stablecoin?
  36. 36. What is Blockchain sharding?
  37. 37. What is the NFT licence fee?
  38. 38. What is the SubDAO protocol, and how does it work?
  39. 39. The main differences between static NFT and dynamic NFT
  40. 40. What is minting an NFT?
  41. 41. Mainnet versus Testnet on the Blockchain. The complete guide!
  42. 42. What are NFT Ordinals? A guide to Bitcoin NFT.
  43. 43. Market Cap versus Fully Diluted Market Cap - the most important differences you should know!
  44. 44. MINA Protocol: the lightest blockchain in the world!
  45. 45. NFT Gas Fee - what is it? How can you reduce your gas fee?
  46. 46. Liquidity Provider Tokens (LPs). What are they, and why are they so important?
  47. 47. What is KnowOrigin NFT, and how does it work?
  48. 48. What is decentralized social media?
  49. 49. What is the Ethereum Name Service (ENS) and how does it work?
  50. 50. Arbitrum: Ethereum scaling solution - everything you need to know
  51. 51. Ethereum ERC-4337 - what is it and how does this standard work?
  52. 52. Sustainable Blockchain - Proof of Useful Work & Flux
  53. 53. Ethereum Proof-of-Stake (PoS) - what should you know?
  54. 54. Atomic Swap: What is an atomic swap, and how does it work with cryptocurrencies?
  55. 55. What Is Cryptocurrency Vesting? What Are Its Advantages?
  56. 56. What Is the Metaplex Candy Machine Protocol? How Does It Work?
  57. 57. What Is the BNB Greenfield Ecosystem?
  58. 58. Real Yield in DeFi - what is this trend? What does it consist of?
  59. 59. What Is Slashing in Cryptocurrencies?
  60. 60. How to Create Your Own Decentralized Autonomous Organization (DAO)?
  61. 61. The ERC-721X VS ERC-721 Standard – Key Differences!
  62. 62. Royalties – What Are They? How Does This Type of Licensing Fee Work?
  63. 63. Polygon 2.0 - the value layer for the Internet
  64. 64. ERC-6551 - the new NFT standard. What does it bring to the non-exchangeable token sector?
  65. 65. What is TradFi? The importance for cryptocurrencies!
  66. 66. What is the Real World Asset (RWA) trend in cryptocurrencies? Explanation and examples!
  67. 67. Pyth Network: a powerful oracle harnessing the power of Solana!
  68. 68. Vampire Attacks in Decentralized Finance (DeFi): Explanation and Examples
  69. 69. What are stables in the world of cryptocurrencies?
  70. 70. What Is Binance Oracle?
  71. 71. What is NFT Lending all about? An innovative solution in the world of cryptocurrencies!
  72. 72. Shibarium: A new era in the Shiba Inu ecosystem?
  73. 73. What is an ETF? How will an exchange-traded fund on bitcoin work?
  74. 74. Symmetric and asymmetric encryption - key cryptography techniques!
  75. 75. Cosmos SDK: Building the Blockchain Ecosystem
  76. 76. DAO Investment: A revolution in the world of finance and investment
  77. 77. What is cross-chain interoperability in Blockchain technology?
  78. 78. Blockchain trilemma - explanation of the problem. What is the impact on cryptocurrency payments?
Lesson 16 of 78
In Progress

16. What are Social Tokens? 

Social tokens are the next milestone in the cryptocurrency industry. They are often confused with NFTs, whereas they have nothing to do with them. So, what is their definition? What is the trend for social tokens, and why are they so valuable lately? Let’s find out the details! 

Definition 

Social tokens are a form of digital ownership, secured by the blockchain. Using them, creators/influencers/fashion houses/famous brands can monetise their services or experiences. 

We know-the definition is a bit complicated, so it will be simpler for us to explain it with an example. Barack Obama wants to run for president again. He builds a group of his supporters and creates social tokens. Then those who come into possession of such tokens are entitled to Q&A sessions with the future president, his photos, handouts or many other accesses. In addition, Barack Obama can resell such a token as an asset. He then enters into a digital contract with the buyer and can even profit from a percentage of the sale, if he includes such a provision in the contract. Can you see the pyramid effect? If Barack Obama’s personal brand grows, the benefits his token is able to provide will also grow in value. 

Social tokens are fully decentralised. They are created using the same model as the popular and familiar cryptocurrencies. At the same time, the blockchain effectively secures them. 

There are two types of social tokens: 

Personal/creative tokens. These are created by individuals. They are usually popular artists,  public figures, singers, painters, actors, or entrepreneurs. 

Community tokens – something like membership cards. They are created to gain greater access to a particular community. 

For an even better understanding of the topic, we will give you some examples: Sting creates a social token so that his fans will invest in his career. 

Doda, sells a social token that will give you access to daily, private conversations with her.

Lewandowski is creating his token to help him monetise his personal brand and will benefit his fans. 

The Shiba Inu community is selling a social token that allows access to a private Telegram.

This can be resold when a community member decides to leave. 

Community tokens vs. NFTs 

Tokens and NFTs are based on the same concept. However, the difference between the two is child’s play. NFTs monetise the digital work, while community tokens monetise the creator/service or artist experience itself. Of course, the two aspects can be combined. An up-and-coming modern painter can create an NFT of his painting and monetise his art in this way. At the same time, he or she can make money by releasing a social token that gives its holder access to, for example, art lessons with the artist.

Advantages of 

∙ Given that tokens are created on the blockchain, the possibility of fraud and fraudulent transactions is virtually impossible. 

∙ Creators have the opportunity to multiply their income. 

∙ Fans of a particular artist can buy social tokens, treating it as an investment.  Admittedly – a bit risky. 

∙ Social tokens will be an essential part of Web3

∙ They bring artists and their fans closer together, making the community of a given artist more engaged. 

∙ They build new financial opportunities for companies. 

They offer the possibility of long-term profits

How are they created?

Social tokens are created on the Ethereum network, in the most popular ERC20 standard.  They are easily tradable, which is why they can be found on exchanges such as Uniswap or Sushiswap. They are characterised by a rather volatile market price, as they have a predetermined value. 

Summary 

You have already seen what social tokens are and how they work. They still have a long way to go before they are popularised. They are often criticised as a ‘weapon’ by which someone buys into the favour of belonging to a particular group. Is this really the case? It is worth following this trend and keeping up to date with it. 

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