Connect with us

Blockchain News

Tokenization and Its Implication on Businesses

Published

on

The term tokenization isn’t strange in the cryptocurrency world although not so popular. It is however important for you to know that tokens are often known as coins and they power every blockchain platform. Tokens basically describe any asset that’s tradable, it could be commodities,  loyalty points or other cryptocurrencies.

What is Tokenization 

Tokenization refers to converting the rights to an asset into a digital token on a blockchain. There is great interest by financial intermediaries and technologists around the world in figuring out how to move real-world assets onto blockchains to gain the advantages of Bitcoin while keeping the characteristics of the asset. Let’s assume that a fish farmer wants to produce fishes worth $50,000. Tokenization can convert the fishes to 50,000 tokens or more. Therefore each token represents a share in the asset (fishes). So, when the token is issued on a platform supporting smart contracts, the tokens can be bought freely and sold on different exchanges. Buying one token gives you a percentage ownership in the asset.  This means that an asset can be tokenized and a digital representation of it can be created on the blockchain. With tokenization, any business can sell anything to raise money. It creates a world where liquidation is unrestricted by physical assets or cash.

Benefit Of Tokenization

Tokenization eliminates the need for intermediaries in the execution of transactions. Businesses and individuals can successfully execute their contracts without the extra expenses of a middleman. Transactions are facilitated on a public ledger that records and validates transactions. So, there is no need for intermediaries. There is also the fact that tokenization reduces the risks of double spending and has a database that shows the complete history of ownership and transaction.

When a token is created by a company, it becomes an atomic unit of value exchange. This unit of value exchange maybe within a particular market and result in a transaction between the buyer and the seller. For instance, if a biscuit producing firm decides to tokenize their assets for whatever reason, that unit of value (token) becomes a transactional economy between buyers and sellers. A token also consists of features that allow users to earn value and to spend it on services that are internal to the inherent ecosystem. Tokens offer businesses a much lower barrier for processing end-to-end transactions within a particular market.

Other Usage of Tokens

A token could also be used on a particular blockchain infrastructure to perform a specific function, running a smart contract, paying for a security deposit, or just as usage fees. It could also be used as an incentive to reward users for joining a network or contacting others to it.
Entrepreneurs are coming up with different creative ways they can put tokens to use. But then it has an implication for every industry. From the Agricultural sector to the real estate sector. For instance, a blockchain based company Propy is using the blockchain to connect property owners and buyers across the globe.  

 

 

 

 

What do you think about tokenization? Share your opinion with us in the comment section below.
Image credit: pixabay,

 

Disclaimer:
The Information provided on the website is designed to provide helpful information regarding cryptocurrency subjects. The content is not meant to be used, nor should it be used as a basis, foundational knowledge or prerequisite for decision making regards trading. Always do your own research and due diligence before placing a trade. We are not liable for any outcome based on any content found on the site.

 

Spread the news

I am a blockchain and cryptocurrency journalist fascinated with sharing the knowledge of this wonderful technology in the simplest language possible.

Advertisement
Comments

Altcoin News

Waves to Launch Blockchain-Based Games Marketplace with The Abyss

Published

on

Image: Waves Platform

Blockchain Platform Waves and blockchain distribution platform – The Abyss will jointly launch blockchain-based marketplace of digital goods and in-game items.

The co-operation will see the building of a universal marketplace of all tradable goods and in-game items offered by Abyss partner game developers through their games.

The marketplace will enable users to purchase items with Abyss Tokens and sell to other users no matter what supported game it was purchased from. This, according to Waves will open another way for game developers to monetize their games on The Abyss.

Waves revealed the Abyss tokens will be integrated with the Waves Blockchain thereby enabling developers to connect The Abyss Token operations directly into their Waves-based games.

This will be made possible and easier by the release of an SDK and provision of technical assistance by Abyss.

Founder, The Abyss Konstantin Boyko-Romamovsky is quoted saying “The Abyss development team has already started preparation for the integration of Waves solution. The respective API methods and libraries will be added to the platform SDK and offered to game studios and developers.

As a mutual benefiting arrangement, games built on the Waves blockchain will be able to utilize the distribution network of The Abyss therefore getting exposure to a wide audience of gamers.

Speaking on the arrangement between both firms, CEO, Waves Platform, Sasha Ivanov said, “The integration of Waves technology will enable The Abyss to create one of the best and the most advanced digital marketplaces in the video game industry. Apart from boosting up blockchain adoption, it is also supposed to increase the speed of processing trading transactions”.

Based on the Ethereum blockchain, The Abyss is a digital distribution platform for online video games with a unique revenue sharing system. The Abyss offers browser, client and blockchain games and provides game studios with additional customer benefits, from community features to marketing tools. Part of the income generated by sales of games & services is distributed between users in the form of rewards for various activities available on the platform.

Spread the news
Continue Reading

Blockchain News

A Proposal Has Been Made To Move ZCash from POW to POS

Published

on

A ZCash Improvement Proposal ZIP was submitted to the ZCash community to migrate the privacy focused blockchain from the Proof of Work protocol to Proof of Stake.

 

The proposal was made by a user rebekah93. According to the community member, “Zcash was launched using Proof of Work. This meant that as well as removing the risk of POS being in some way faulty, the developers could focus on snark development rather than proof of stake development. Now the situation is a little different, as POS is a little mature and shielded transactions in zcash have come leaps and bounds.

This means that we should be able to switch from POW to POS without diverting developers too heavily away from other protocol improving works.”

 

The motivation according to rebekah93 for the improvement proposal was “by not wanting to have ‘destroying the planet’ as one of zcash’s most prominent achievements.

This is related to the amount of power needed to maintain the proof of work blockchains with Bitcoin being the highest consumer as the largest pow blockchain.

In order to achieve consensus, the community will have to answer some questions such as:

what properties does it want from POW? BFT or not?, Which are the best POS protocols that satisfy the needed properties, who gets to have the loudest/definitive say, when will it be implemented, who will implement it, will there be a transition period, when will the transition go live?

The ZIP which is currently in draft stage has attracted comments from the zcash community with one member Faddat defending POW by saying it doesn’t harm the environment and that it is one of the most efficient uses of stranded energy. According to him, POS chains have more favourable performance characteristic, but POW is more secure.

 

Another member of the Zcash community by the name OliverNChalk is  of the opinion that the migration to POS should be put on hold and wait to see how the Ethereum imminent migration to POS goes as this would give an idea of how POS looks in the ‘wild’.

 

A member of the Zcash foundation by the name Sonya said concerning the ZIP “I like proof-of-work because the economics are straightforward and the model is battle-tested. I don’t think proof-of-stake has been around long enough that we should jump on it — maybe another couple of years.”

 

The proposal was created over 40 hours ago, it has received 1500 views and 12 replies. At current it is still a draft.

Spread the news
Continue Reading

Blockchain News

Blockchain-based ID System to Be Instituted In The Argentine Capital.

Published

on

On August 26, Buenos Aireshad announced that it would be partnering with three tech-based companies to facilitate the creation of Blockchain-based digital identity platform for the capital city of Argentina. This announcement was made by NEC’s website given that they will be partnering with DECODES (NGO Bitcoin Argentina) and IDB Lab to help develop the platform.

This new platform will achieve a number of purposes. One of these purposes would be helping to improve the access to quality goods and services for residents of the city, this is in line with the concerns about the fast increase in the level of poverty in Buenos Aires. According to a recent study carried out by the city government (GCBA), it indicated that 16.2% of the inhabitants dwelling within the region were currently living below the poverty line of the country.

The study also reflected an increase in the level of vulnerability for its inhabitants, this is because they aren’t just limited to access to certain goods and services, they are exploited as well. It is hoped that having more detailed information that is easily and securely stored will better enable government officials to create a more effective and efficient system that would assist those in the city suffering from extreme poverty within the region.

Erika Molina, the Project Team Leader from IDB in a statement, had explained that:

“The project aims to increase access to goods and services for the residents of vulnerable neighborhoods, thus allowing them to improve their opportunities for socioeconomic inclusion in the fourth industrial revolution.”

This new platform will go a long way in helping to alleviate the “poverty penalty” that many of the poorest in Argentina have been enduring for a while now. The penalty in this context refers to the fact that most of the people who are below the poverty line lack the proper paperwork and identification needed to acquire housing, employment or any form of assistance necessary.

Spread the news
Continue Reading

Blockchain News

Telegram Open Network TON To Be Compartible With Ethereum, Public Testing on September 1st

Published

on

Privacy focused messaging firm Telegram’s blockchain project the Telegram Open Network TON has been revealed to be compatible with the Ethereum blockchain according to a Tech startup developing tools for TON.

The startup TON Labs which is financed by TON investors is building several tools for developers to use in order to build new projects on Telegram Network.

Of the several tools, a Solidity Compiler is one of them which will allow decentralized applications developed for Ethereum to also run on the TON.

According to the firm, the compiler has been in testing since July.

TON is expected to launch by in two months from now at the end of October however, public testing is expected to begin on the 1st of September, 2019.

The Telegram Open Network TON is a decentralized application and messenging platform built by Telegram after it had raised over a billion dollars in a token sale in 2018.

The blockchain is set to feature the native token GRAM which will be launched by 3rd quarter of 2019

Telegram announced in February that TON is almost complete and that TON will launch in Q3.

Earlier in May, Telegram released a test client for the Telegram Open Network. The release of the test client allowed users to create simple wallet smart contracts in TON.

Button wallet had earlier announced support for TON where it allows users trade and hold digital currencies on the Telegram platform with its TON testnet service

Spread the news
Continue Reading

Find Us

Address: 7 Kafi Street, Beside City Mall, Shoprite, Alausa, Ikeja, Lagos.

Hours: Monday—Friday: 9:00am–5:00pm

Contact: +234 817 866 6900

Trending

Copyright © 2019 Cryptoptvplus. Powered by Ma media