By 2019, almost everything can be segmented with the help of blockchain technology. Tokenization refers to the process of converting the ownership of real assets into digital tokens. This helps to optimize the process of liquidation of large and expensive assets by fragmenting the property. In addition, by digitally breaking down an asset into smaller units, it helps to improve trading and can be marketed to investors around the world. Finally, it simplifies the process of record keeping and documentation, allowing buyers and sellers to effectively track transactions.
Today there are five major types of tokenization practices. They have been listed and briefly explained below:
The initial offer of parts or ICO is a blockchain-based support that allows entrepreneurs to easily raise funds for their projects. ICOs use blockchains to launch and distribute proprietary crypto-currencies to investors.
It is an alternative fundraising mechanism where entrepreneurs promise their tokens for tangible assets. This provides a very safe investment vehicle and protects the interests of investors.
This class of chips is backed by real products such as bullion, metals, agricultural products, etc. These tokens optimize the trading of these physical goods because it is easier to process them numerically.
Real Estate Token
As the name suggests, real estate segmentation involves the digitization of properties. This allows homeowners and agents to sell their properties faster by fragmenting large assets into smaller and more affordable tokens.
Formerly an exclusive and traditional market limited to the haves, the blockchain opened the doors of the art industry to the masses. Today, art lovers and investors can "buy" property rights on multiple works and create art portfolios.
In addition to optimizing trading and improving liquidity, tokens present many other benefits. For starters, it's easier to configure compliance with different regulations. Then, using smart contracts, users can automate various processes such as transactions and hassle free transfers. Tokenization also eliminates the need for intermediaries and creates a network without trust. Finally, this method is cost effective and focuses on the easy mobility of goods or services.
Starting a token service is no longer a problem. Blockchain App Factory is a leading company in the development of tokenization platforms. They have unparalleled experience in this field and their large team of experts can launch customizable and scalable solutions in no time. All of their solutions are white, feature rich, and have the latest security protocols.