The new buzzword will rule the world of digital ownership, according to experts. The BTCMEX Blog is taking a glance at the tokenized future!

As Mattew Roszak stated in 2017, the largest taxi company (Uber) owns no cars, the largest media company (Facebook) creates no content, the largest accommodations provider (Airbnb) owns no hotels, the largest e-commerce company (Alibaba) has no inventory, and the 70 billion dollars cap (Bitcoin in 2017) currency has no bank branches, no CEO, and no Customer Service department. 

In the world of today technology is power. Tokenized assets empowered technology with the value of physical goods that are represented by money. The old model where money uses to equal power is changing to money becoming technology via the rise of cryptocurrencies and tokenized assets on the blockchain.

What is tokenization anyway?

Asset tokenization is the representation of ownership of tangible assets using digital tokens on a blockchain. Notable examples are stablecoins, like Tether (USDT) or digital tokens which represent gold. Asset tokenization is an easy and convenient way of safekeeping. It also makes trading faster and far more simple. As blockchain assets can be divided into smaller units, increasing its liquidity. 

These digital representations of tradable rights, known as tokens, can be easily transferred between individuals just as easily as sending a Bitcoin payment, essentially allowing anybody to buy, sell and trade the ownership of practically anything.

The great potential is currently seen in tokenizing real estate. In the traditional market, a real estate has to be transferred in its entirety, but once it is tokenized, it can be divided and sold as units, which makes it easier to trade. Asset tokenization helps in safekeeping as well. Commodities like gold can be damaged during physical trades, which results in losing their value. No physical transfer is required with tokenization which ensures its safety and condition. 

Satoshi Nakamoto created the world’s first scarce digital asset – a token called Bitcoin. The security advantage that blockchain gave us is a token can’t be copied, ensuring the supply number and, therefore, the value of a particular token. Ethereum is the main computing network for tokenization today. Tokens on ERC-20, ERC-721, ERC-875, ERC-1155, ERC-1400, etc are essentially smart contracts that make use of the Ethereum blockchain.

Tokenization unlocks new economies

Based on the type of rights being tokenized, token issuers choose different smart contract standards for fungible, non-fungible, or semi-fungible tokens. Non-fungible tokens took the tokenization to a further development step by allowing representation of unique goods or commodities that are not interchangeable. They are used in several specific applications like crypto art (rare art), crypto-collectibles, and crypto-gaming. 

Non-fungible token smart contracts have been used to tokenize real estate, art, stocks, cars, and more; it is rapidly gaining popularity as a way to bring sports personalities and celebrities closer to their fans, while potentially opening up exciting new avenues for investment and entertainment.

We all witness how the concept of a valuable asset differs from generation to generation. Generation Z, born between 1997 and 2012, redefined ownership by caring about digital assets, states Maya Middlemiss. 

When I spoke to Lola*, 15, about what value meant to her, she told me that her most important asset was her phone — which she then clarified to mean the photos and messages it contained. It was the content that mattered, not the device.

Maya Middlemiss

Like, Uber not owning cars, perhaps our children’s generation won’t own the roof over their heads, but they’ll own wealth of digital assets instead which give them choices, flexibility, and alignment with their values. Technology is what brings these values to life. Technology is the power of tomorrow. 

Share:
Whatsapp
SOCIALICON
SOCIALICON