3 Tokenization Real World Use Cases
Asset tokenization popularity is on the rise. Investors are realizing the benefits of a tokenized economy and the technology uptake is set to continue growing. Having full control over your assets in a transparent environment gives you peace of mind.
Tokenization simply means converting your physical assets or commodities into digital token format. The process converts rights of ownership of assets into digital tokens which can be transacted on a blockchain based network. With the digitalized assets, you can trade in the secondary market.
Tokenization makes it easy to trade without geographical restrictions at reduced transaction rates. It makes commodities more fungible and adds more liquidity in a market that operates 24/7. Here are some 3 tokenization real world use cases that have proven successful.
Real Estate Tokenization
Real estate tokenization is real and many property owners and buyers are collaborating on blockchain ecosystems to make the sector more accessible to the common investor. By converting real estate assets into digital assets, it makes it easier for the investor to purchase a fraction on the property anywhere in the world.
Real estate invested tokens represent shares that are smart contract backed. However, these tokens can be traded by investors in various exchanges. If you buy 100% of the total shares on any property, you become the property owner. Since the technology is immutable, your records are permanent and legally binding.
Printed art can be easily tokenized; however, the number of copied need to be owned by a company. With some form of ownership, interested buyers can buy the pieces using tokens. Alternatives they can use tokens to own part of piece of art if they cannot afford the whole.
Owning a fraction art means when prices appreciate, you token value goes up. Irrespective of your location, shipping will be made easy since you can track its movement from the source to the buyer. In a tokenized economy, funding is also easy and you can own the’ whole asset’ through financing from a third party.
With the shift from paper work to digital transactions, tokenization of commodities is now possible. Tokenization has ushered in an era of standard agreements which are backed by trusted participants. Commodities like gold have been sold using certificates but there is no guarantee that the certificate you hold is t original.
With tokenization, fake certificates issue does not arise; tokens cannot be duplicated thus locking out instances of double spending. Token holders are assured that their digital coins have not been issued to other investors and this will enable the token economy to thrive where fraud has failed the investor.
The future of tokenized economy looks bright since asset tokenization increases efficiency in the market whilst ensuring anyone across the globe has access to the economy. IN a tokenized economy, it is easy you diversify investment and get a chance to interact in the global marketplace.
What’s more; tokenization opens up the market for new adopters since you do not need to have a lot of money to participate. The technology offers all an equal opportunity to invest in the economy and diversify their crypto portfolios.