Tokenizing the world!

Now this concept still seems very foreign, but it will soon become commonplace, and with this procedure new possibilities will open up where the starry sky is the limit.
I had only heard of "tokenization" a year or two ago but then it was all confusing for me and I didn’t want to delve into it. Now, however, I am constantly learning every day, I want to understand all the contexts and make them useful to myself.

Well, what is this "monster"?

Tokenization is the process of converting financial assets and goods into transferable, recordable, or storable digital tokens in a blockchain system. In other words: by tokenization, we convert the value of a device, a tangible / intangible asset, such as a painting or intellectual property, into an electronic token that we are able to manipulate within blockchain systems.
Thus, the token is analogous to shares. As a token owner, we can have a shareholding in an asset (usually of more serious value).

Blockchains are the platform on which tokenization is performed, while also providing the native environment for the transfer, storage, and trading of tokens. There are, of course, many other benefits, but they are more likely to be derived from the benefits of digitization: they are faster, more secure and easier for us to account for than with the tools of traditional paper-based markets.

Tokenization of physical values that are unique and irreplaceable

(Photo credit: Pixabay)

There is almost no thing in the world that cannot be tokenized. Think, for example, of valuable art treasures, such as the Mona Lisa or Tutankhamun’s death mask, which are very difficult to express in monetary terms. A digital token representing the Mona Lisa or Tutankhamun Mask is such an immutable representation of the original work of art that cannot be copied, but at the same time can be divided into smaller units, subokenes, under certain parameters, where each altoken is digitally verified. This enables us to distribute and sell individual works like shares. Owners of the Mona Lisa token do not have a small physical piece of the painting, but a tokenized form of ownership that they can sell to customers.
Of course, tokenization can also be useful in contemporary art, helping artists make a living from this.

The procedure can also be used in the real estate market. By being able to tokenize individual irreplaceable assets, we are able to distribute ownership. It will be easier to raise funds and the asset will be owned by wider social groups, or even the exercise of responsibility over it, thus democratizing the real estate markets, too.
I think this can be very good for those who don’t have enough money for real estate but don’t want to take on decades of loan repayment. Due to the flexibility, moving to a new property can be much easier!

It is a question that biodiversity of Mother Earth could also be tokenized, thereby protecting it from destruction or extinction, as well as a national park, coral reef, freshwater, protected animal and plant species. By selling tokens, they form the basis from which they can finance maintenance and protection. However, I feel this can also raise ethical issues...

Tokenization of intellectual (non physical) products

Intellectual products can also be tokenized, such as design, architectural design, invention, innovation, usable research results, software, game software, music, literary creation, digital artworks, and so on.
There will be no more administrative and legal paperwork, and there will be no cost involved.
Instead, you exchange the token of the idea for a unique signature, which will be the consensual ownership of the intangible asset for everyone.
A good example of this is DaDa.nyc, where digital works can be purchased for tokens on the Ethereum blockchain, or NFTShowroom on the Hive blockchain.
I don’t know if there’s a working example already, but photos could certainly be tokenized on stock photo pages as well.

Tokenization of physical products (commodities), terrestrial resources

These include mostly listed raw materials and energy sources, such as oil, gas, mineral resources, as well as large quantities of goods, semi-finished goods, agricultural products, etc.

(Photo credit: Pixabay)

Take the example of coffee (not Fair Trade). In the traditional system, coffee goes through a lot of resellers, from producer to consumer. Many times it is not possible to know what channels the goods went through. It is well known that coffee growers, workers work for starvation wages. By the time the barista makes you a cup of coffee from the coffee beans, you will pay for it as much as the monthly salary of a worker working in a coffee field.

However, with the help of a tokenized blockchain system, most of the process can be omitted. With a digital representation of coffee, stakeholders can trade without the need for intermediaries. They can achieve all this with the help of blockchain smart contracts. There are no intermediaries, bills of exchange, port personnel, state inspections or warehouses. The coffee, which is identified on the blockchain, is immediately transferred from the seller to the buyer, including any shipping or storage information. The transaction is recorded on the block chain, which also functions as an unalterable and immediately verifiable account. This makes it possible to replace paper-based data recording and introduces a much more detailed and fast alternative to exchanging substitutable products. In this way, costs are dramatically reduced, so the producer can benefit much more and pay his workers much better. The barista may not make your coffee cheaper, but at least you can drink it with a clear conscience.

Well, if the Earth has already been tokenized, let's tokenize the Moon!

---

---

Do you feel uncertain about your future? Learn how to build your wealth with ease!
Fair and trustworthy way to keep your Ethereum in BCT (BlockChainCapital shares) and/or WBT (WealthBuildingToken)!
Want to help other people and be rich at the same time? Join our community, and you'll be helped in every steps!
See this short video:

If you just want to invest by buying BTC or WBT, or just keep your Ethereum here, sign in and create your wallets.
My referral link: http://my.blockchaincapital.pro/?ref=kalemandra

---

I'm not normal! I'm a Humanoid!

With lots of love from Kalemandra

Posted Using LeoFinance ^Beta