tokenization it is part of the new economy - economy tokens. This is one of the elements of the digital revolution that comes with entering the economy and life blockchain technology. A free and decentralized market can price items, services, assets and even people yourself!
What is tokenization?
Tokenization is the creation of tokens (what is a token? Look here) and assigning them specific values.
The simplest use of tokens is to transfer the traditional money value to blockchain networks. For example, we can secure 1 million USD and emit one million tokens, each of which will represent the value of 1 $. In this way, the cash that covers the tokens gives them value.
In a similar way, tokens can represent the value of shares in a company or real estate. They may be associated with a project, act as loyalty points or a means of payment.
Tokenization - examples of applications
You have a great idea, but you have no money for its implementation? You can go to businessmen who, after signing an appropriate contract, can fund your activities, benefiting from their subsequent effects. However, how many people are with good ideas and how many are willing to finance such activities? How difficult is it to convince the investor and get financing? Discouraging?
You can make a fundraiser on a crowdfunding platform, but it's definitely easier to collect money for pro-social activities, not business ones. What will your donors have about the success of your company?
You can too to organize ICO, release own tokens and offer them in exchange for the capital needed to develop the business. It's easier to collect 1 $ 1 million a million times than one person. With the development of your company, according to their use in the business model, the value of tokens should increase, and your investors earn on your success.
In this case, we can talk about the tokenization of ideas and future effects of their implementation.
Sale and purchase of shares without intermediaries, with just one click, 24 hours per day, 7 days a week, on a global liquidity market? No problem. The use of tokens and blockchain technologies will save time, money and eliminate brokers. Tokenization, or the conversion of traditional shares into tokens, is the future of financial markets.
You have a shopping center in the middle of a big city and you want to sell it. It will be easier for you to find two thousand people, each of whom will buy a piece of your shopping center, than one investor who will spend USD 100. Tokenization of real estate will allow for the conversion of one property right into millions of individual tokens, corresponding to the ownership of a specific part of the property, expressed, for example, in square meters.
Gains from renting a shopping center can be automatically paid to token holders, in a transparent and maintenance-free manner, eg through a smart contract platform, e.g. Atlant project.
The same solution can be used in many similar areas of life.
Tokenization of products can allow for error-free determination of the authenticity of a product, as well as tracking its path in the supply chain. This applies not only to branded clothing, but also to medicines, works of art, etc.
Each of us can release their own token, and then accept payment for their services, sharing knowledge, experience and skills in these virtual tokens. It is a very young phenomenon. It is not known in which direction it will develop. In the future, the value of a personal token reflects the social position, skills, experience and property of a given person. Today, the first celebrities and athletes spend their personal tokens. What will result from this? Time will tell.
Huckle, S., Bhattacharya, R., White, M., Beloff, N., 2016. Internet of Things, Blockchain and Shared Economy Applications. Computer Science procedures 98, 461-466. https://doi.org/10.1016/j.procs.2016.09.074