The year 2017 was held under the banner of the solemn procession ICO-movement. Krausel arranged everything — from serious international businesses, ending with ordinary dreamers, with their ideas to change the world. The hype subsided, and was not that a bitter disappointment, but rather a question: “Guys, we have a great tool, powerful, beautiful and graceful. Only now that we are going to do?”. If we put aside the investment component, attractive mainly for traders and investors what to do with tokens? What do they do?
Yes, each project has its inner purpose amount of cryptocoins, sometimes very questionable from the point of view of usefulness and applicability. So 2018 is the year of answers to the question — how we will apply powerful blockchain. One of the answers is obvious — the tokenization of both digital and physical assets. We will understand why many reputable companies began to assess the possibility of such utilitarian use of tokens and why it is gaining popularity.
Under the tokenization refers to the process of assigning the base cost of any asset (physical or digital), and the expression of it in bitcoin. Each token confirms the possession of a certain share of this asset.
Let’s say you needed $50K , and you have land worth $500K. To run to the Bank not a bad idea, but the bureaucracy is cumbersome and money will fall into your hands soon. Yes, and to lay only a part of the land required to obtain the $50K you will not leave. I.e. in the case that you will not be able to meet its obligations, you will lose not 50, not 70, and almost all the money was worth the collateral.
Using the blockchain and cryptocurrency this issue is resolved, great! It is possible to divide the earth by 500,000 shares, for example, and to produce 500 000 tokens. Then 1 cryptomate will be provided 1/500000 a share of the land and cost$ 1. In the specialized area you are selling exactly the part that you need to gain the required amount.
The value of any asset can be expressed in kitawala — property, goods and even your personal social capital. So, Fujitsu has launched a blockchain service for tokenization bonus points and cumulative discounts in trading networks, and the project Bankex allows you to monetize with tokens of your activity and popularity in social media. Stock, securities, obligations and even Fiat currency is translated into the crypt.everything is possible.
Cryptocurrency enthusiasts quickly appreciated the benefits of this approach, and as a result, a number of projects through which the process of “digitizing” anything — trivial task for the user. Bankex, Blackmoon, TrueUsd, Brickblock is one of the first representatives of the movement tokenization, but not the last.
For all the criticism of the algorithm ERC20, he initiated and left a gorgeous legacy of smart contracts. They guarantee the rights of share ownership, expressed in a certain number of tokens. Because of this, we can safely modify, sell and transfer assets. Thus, we picked some value, tokenservice and created its digital representation, which is placed in the blockchain. The integrity of the block chain network, in turn, guarantees the authenticity of data recorded in it, and you can proudly and safely dispose of their property.
In summary, highlight a few major advantages takenouti:
· increase the liquidity of the assets. Divided into shares, they become more convenient in terms of sales and exchange
· guarantee the safety of property rights and secure their transfer to the buyer in full.
· reduce transaction costs and time costs by changing the owner of an asset (whole or part)
A serious obstacle in the way of tokenization is the lack of a legal practice and regulation in this field. The smart contract itself is not a sufficient document confirming the right to property.
A number of States, such as Switzerland, Malta, Estonia, actively introducing their own legislation accordingly. And companies operating in these jurisdictions have legislative advantages in the integration of the blockchain and cryptocurrency in the traditional economy.
However, radical shifts are: the government of Malta is committed by 2020 to make a “blockchain-the island” Central Bank of China has shown the platform based on the blockchain for digitizing payment cheques; Canadian CSE launches the platform for the adjustable tomenselo; USA, Canada, Switzerland, Singapore, Japan and the United Arab Emirates has issued a number of laws under which the ICO is officially permitted, but will be regulated by the government.
But there are no precedents on the recognition of tokens or smart contracts is analogous to the document property. And as a mediator between the state and the user is forced to be a real organization, kind of attorneys.
Tokenization as a tool for social and business connections, still requires the political and legal amendments, revision of market paradigms. But in the right hands, even today, is a powerful and reliable tool for various applications.