What Tokenization is Doing To Real World Assets

The tokenization principle brought about by blockchain technology is a fundamental element in the much talked about revolution that this technology portrays. The knowledge that previously unsplittable entities can be broken down into smaller units and made more accessible is a mind-changing philosophy.

By improving accessibility, blockchain technology is creating a globally inclusive economy that is enabling expansion and value distribution among the various cadres of economic development.

On what tokenization is doing to real world assets, we will be taking a look at some of the factors enabling this system, and the asset types that are already becoming tokenized.

What is Tokenization?

First of all, it is important to understand that the idea of tokenization involves the breaking down of real world assets into digital tokens, therefore creating a flexible value system for the converted assets.

Tokenized assets become extremely manipulatable, having achieved a liquified nature. This simply breaks whole assets into much smaller units that retain the same characteristics of the original structure.

Blockchain technology is dynamic and is currently playing a significant role in digitizing real world assets. A number of platforms are already in existence that are allowing asset owners to submit property for proper valuation and tokenization. This enables these owners to introduce properties into the globalized digital assets marketplace, making it more accessible to investors at all levels all over the world.

Investors on the other hand are enjoying an extended level of diversification with the availability of alternatives. This development provides them with the option of carrying out the age long principle of ‘don’t put all your eggs in one basket’. For instance, an investor can split his investment across several assets by buying smaller fractions of each of them instead of sinking his entire funds into one unit. This system encourages an improved risk management technique that is very much welcome in the investment circle.

The Venezuelan Petro, a Product of Asset Tokenization

In 2017, the Venezuelan government announced its plans to digitize its national asset, crude oil. The president and his men saw this as a move that could deliver the country from the terrible economic situation that it found itself in.

The national cryptocurrency, Petro was planned to be backed by 5.3 billion barrels of oil, which was worth $267 billion at the time. Several months later, the cryptocurrency was launched amid controversies. Holding onto the Petro cryptocurrency today is as good as holding a stake in Venezuela’s national asset.

Without the concept of tokenization and the conversion of real assets into digital currencies, this may not have been . The economy of the South American nation has been so bad that even citizens are seeking for external solutions and wouldn’t bother investing the country.

Tokenization in this case has broken the geographical barrier and enabled Venezuela reach out to a global market that is devoid of traditional barriers. Petro digital tokens, though backed by the nations oil, will still be influenced by the natural effects of the decentralized marketplace that blockchain technology has enabled.

Breaking Down the Rigid Real Estate Sector

One of the low liquidity assets segment in today’s global economy is the real estate market. Average real estate assets are usually above the reach of the common man. In order to own a property, especially in choice locations, much planning and funds investment is usually required. This is one of the major reasons why most of the world’s wealth, especially in real estate, revolve around a very small percentage of the global population.

Infrastructure tokenization platforms are in existence today through the provisions of blockchain technicalities that allow huge assets to be broken down into smaller pieces. The availability of utility tokens offers the possibility of breaking down these assets into smaller units that are affordable to investors at all levels. With this system, a small investor from any part of the world can purchase a small part of a functional apartment through its tokens. This will make the investor entitled to the rent, or other accrued benefits that may be associated to the apartment in proportion to the percentage of tokens held.

Practically speaking, in order to achieve real asset tokenization on properties and any form of assets, there needs to be a custodial entity that will be responsible for valuation, storage (where necessary) and periodic auditing of such assets.

It is this custodian that will represent a trusted party that will hold the given assets and convert it to tokens of appropriate value, before releasing these tokens into the market. A number of blockchain platforms are already in existence that are playing these roles and helping companies and asset owners to convert their assets into blockchain tokens and make them very flexible and available to the global marketplace. Polymath, Swarn, Harbor, and Securitize are some of the platforms that are currently rendering these services.

This initiative is totally rewriting the investment protocol and disrupting the asset class community on a global level. It is serving as a fundamental wealth redistribution strategy that will eventually breakdown the monopoly that currently exists in the global real assets marketplace.

Benefits Of Asset Tokenization

Several benefits have already been associated with the tokenization system that is brought about by blockchain technology in the real assets class ecosystem. Some of them have already been mentioned in the course of this post. They are listed as follows:

  • Asset tokenization enhances liquidity of assets that otherwise have a very low liquidity.
  • It allows asset owners to capture liquidity premiums from assets that otherwise, due to low liquidity, would not be actively traded.
  • Tokenization enables economic models around asset ownership, such as fractional ownership, thus users can purchase one cheap piece rather than an expensive whole.
  • Tokenization through fractional ownership allows diversification of risk arising out of asset ownership.
  • Tokenization and ease of transactions eliminate temporal and territorial barriers for asset owners in attracting investments.
  • Asset tokenization effectively reduced entry barriers for trading and investing, by lowering the minimum payment charged for participating in the trading.
  • It enables newer models of raising capital, by allowing projects that are under development to issue shares in the form of tokens to finance project development.

The revolutionary systems that are becoming available for regular users are having a huge impact on how most traditional processes are turning out. The global real asset industry is not left out in this case, as it is also having a direct impact on what tokenization is doing to real world assets.

At 4King Media, we’ interested in pushing boundaries and working with companies at the forefront of the blockchain wave. Be it companies spearheading tokenization, or the supply chain industry, or say renewable energy. We like disruption and we’ve got the team to put you on the map, get in touch if this feels up your alley.

https://medium.com/@4kingsocials/what-tokenization-is-doing-to-real-world-assets-134f07a3936c?sk=3618ebb3b695909d7035b9ae1f9b0a75

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Source: ethereum
What Tokenization is Doing To Real World Assets

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Overstock Subsidiary and Tokenization Firm tZERO Announces New Management

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The Problem with Tokenization? “Marketplaces Just Aren’t There”

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Ethereum Prefered For dApps, ETH Prices and User Activity Correlate

  • Ethereum (ETH) prices unchanged
  • prefer Ethereum as the smart contracting space heats up

A latest dApp research report backs Ethereum. Despite limitations, Ethereum is a top-choice for developers. Meanwhile, prices are stable. Because of June 26-27 candlestick arrangement, there is a chance of ETH prices printing lower in days ahead.

Ethereum Price Analysis

Fundamentals

Tokenization is possible because of smart contracts. Ethereum showed the way, and now the space is congested. With various platforms promising ultra-high throughput sometimes in the tune of millions, Ethereum’s position could be under threat according to neutrals.

However, convincing as it is, that is not the case. A raft of changes and code enhancement mean the platform is a top choice for many developers. Compared to EOS and Tron, for example, Ethereum is more active from the development front that even the world’s valuable network in Bitcoin. That is despite existing challenges like scalability concerns.

Regardless of criticism, Ethereum is better decentralized than Tron and EOS, and chances are a new derivative product could be given the thumbs up by the CFTC.

Endorsing Ethereum, a new Dapp.com research report reads:

“484 new dApps were added to the market this quarter, and Ethereum is still the first choice for developers, followed by TRON and EOS. Newly launched like TomoChain and IOST are quickly expanding, but the first tier have already gone way ahead. activeness has a strong correlation with ETH price – the higher the price, the more Ethereum dApp users. More token holders have also been converted to dApp users, as the price has increased since mid-May 2019.”

Candlestick Arrangement

Ethereum ETH

Presently, ETH is stabilizing but trending below $300. Technically, the level is as far as trend maintenance is concerned. Moving on, it is imperative that ETH bulls reject lower lows.

That means reversing of June 27. Preferably, behind this upswing must be a buildup of high trading as buyers snap back to trend. For now-and, as prices consolidate under bear shadows of June 27, traders can ramp up as long as prices are above May high.

Note that ETH is trading within a bullish breakout pattern against the USD while the $230-$250 zone as support.  Therefore, any retest of this level is an opportunity for risk-off traders to ramp up while aiming at $350 and $400.

Conversely, if prices crumble, sliding below $230, there is a high likelihood that ETH could retest $230 and even $190.

Technical Indicators

Anchoring this trade plan is June 26 candlestick. With high volumes as indicators, any surge above $350 or meltdown below $230 ought to be with high participation exceeding 554k of June 26.

Chart courtesy of Trading View. Image Courtesy of Shutterstock

The post Ethereum Prefered For dApps, ETH Prices and User Activity Correlate appeared first on NewsBTC.


Source: newsbtc
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At Bitcoin 2019, Scientists Cited in White Paper Weigh In on the Future

While crypto fanatics have been buzzing with news about bitcoin price surges and Facebook’ introduction of its digital currency libra, the Bitcoin 2019 conference brought together some of the most significant people in the BTC community for a two-day event to discuss the current and future state of Bitcoin. 

Among the conference speakers were Scott Stornetta, chief scientist at Yugen Partners, and Blockstream CEO Adam Back, the creator of Hashcash.

These two crypto scientists are particularly notable because they were directly cited by Satoshi Nakamoto in the Bitcoin white paper. At Bitcoin 2019, they came together for a discussion with Bitcoin YouTuber Naomi Brockwell about their contributions to the creation of Bitcoin and where they foresee the original cryptocurrency going in the years to come.

Naomi Brockwell, Scott Stornetta and Adam Back at Bitcoin 2019

Stornetta’s Contributions to the Development of Blockchain

Stornetta co-authored three papers cited in Bitcoin’s white paper and was one of the first people working on creating a system that did not require people to trust a central authority. In the early days of Bitcoin, Stornetta realized there was a with recording transactions, so he suggested the creation of immutable records in order to track all bitcoin transactions.

“We’re going to not be able to know the difference between an old bit and a bit, and all of the world’s records are going to be in bits, and that’s going to create a crisis of credibility,” as Stornetta described the problem during his conference panel. 

to Stornetta, he and Stuart Haber, who is also credited with the creation of blockchain technology, were struggling to solve the problem, so they decided to create a publication that would prove it is impossible to build an immutable record without a central authority. In writing it, Stornetta said they were able to out how they could build an immutable record with the use of a blockchain. 

Back’s “-of-Work” Concept

In 1997, Adam Back introduced Hashcash, a “proof-of-work” system that would users of the internet detect and avoid spam email. Hashcash worked to ensure users were only accepting emails from others who provided proof that an effort was made to send the email.

The “proof-of-work” concept was carried over into the world of Bitcoin to enable competitive mining of blocks. By using a trial-and-error method to mine bitcoin, miners that are able to verify proof of their work and successfully mine a block are rewarded with bitcoin as payment. 

“Satoshi made use of the hashcash idea to create the mining,” Stornetta said. “It’s easy to see in hindsight huge incentives were needed to kickstart (bitcoin).” 

The Future of Bitcoin

For Stornetta, the future of Bitcoin is broad and diverse. Stornetta told the audience at the conference that he is a “fundamental believer” in crypto technologies and their ability to level the playing field. 

“I am not a crypto anarchist, but I certainly am a crypto libertarian, and I think we are going to get the world that we want and that we deserve, we just need to find a path that leads from A to B,” Stornetta said. 

Stornetta said he believes distributed ledger technologies will continue to advance and diversify in the future, and that he sees a potential for other currencies besides bitcoin to flourish. 

“It doesn’t all just have to be about money, of course,” Stornetta said to the crowd. “I’m a big fan of the distributed ledger and how that can create quantization and tokenization of assets … I just think we’re gonna see such a broadening and diversification of this.” 

“A New Paradigm”

Back also touched on the quick development of cryptocurrency technologies and the of keeping up with the pace of new ideas and implementations of them, even for technical people. Back discussed how there are still areas of innovation that have yet to be realized. He further noted that blockchain and bearer electronic cash are new building blocks that have implications with smart contracts. 

“Basically, it’s like picking up a new programming language with a new paradigm, and it takes a lot of people to natively understand it and reach the conclusion of what kind of conclusions you can build with it,” Back said.

Back mentioned the development of the Lightning Network and state chains to further his point about how advancements within crypto technology are being made at a rapid rate. He also discussed his reasoning for why multiple cryptocurrencies may not be a necessity in the long run. 

“In terms of coins, I tend to view it as sort of like TCP/IP — that there’s one interoperable standard,” Back said. “Any kind of innovation can be adopted in layers or, ultimately, people can import Bitcoin’s UTXO set to another data structure if a new data structure is found.”

Bitcoin 2019: Chat with Adam Stornetta and Adam Back

Disclaimer: Bitcoin 2019 was produced by BTC Inc, the parent company of Bitcoin Magazine.

The post At Bitcoin 2019, Scientists Cited in White Paper Weigh In on the Future appeared first on Bitcoin Magazine.


Source: bitcoinmagazine
At Bitcoin 2019, Scientists Cited in White Paper Weigh In on the Future

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Standard Tokenization Protocol Joins Binance Ecosystem

Coinspeaker
Standard Tokenization Protocol Joins Binance Ecosystem

Standard Tokenization Protocol is very excited to announce that we will launch our STP Token (STPT) on Binance Chain and intend to submit a listing proposal for Binance DEX, the decentralized asset exchange feature developed on of its native blockchain and community-developed software , Binance Chain.

About Standard Tokenization Protocol

Standard Tokenization Protocol is an open- standard defining how tokenized assets are issued and transferred while complying with all necessary regulations at the token level. Standard Tokenization Protocol allows digital assets to become fully compliant across jurisdictions and transferable across any platform.

STP CEO Mike Chen said:

“We are excited to be working with Binance and becoming a part of the larger Binance ecosystem. Both of our platforms are deeply aligned in our efforts to push the overall digital asset space forward.”

About Binance Chain

Binance Chain, a blockchain software system developed by Binance and the community, is a community-driven project with and contributors from all the world. Binance DEX is the decentralized exchange feature developed on top of the Binance Chain blockchain, setting a trading standard for fast and secure peer-to-peer trading.

Join the STP community to stay up to date with all the latest news and developments: Telegram channel, Twitter, Medium.

Standard Tokenization Protocol Joins Binance Ecosystem


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Standard Tokenization Protocol Launches Proof of Business Program And Announces Block72 as Inaugural Partner

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Standard Tokenization Protocol, a globally compliant open-source standard and decentralized network for the tokenization and issuance of any asset, announced today the launch of a new “Proof of Business” (PoB) program that will companies to stake STPT tokens and earn staking rewards.

Through STP Network’s PoB program, any company or project in the blockchain industry can participate by locking up STPT tokens in a publicly displayed contract address for a set amount of time while earning staking rewards and benefits such as access to the company’s overall ecosystem of blockchain projects, funds, media partners, and service providers.

Block72, a global investment bank for digital assets, has been revealed as the inaugural partner to join STP Network’s PoB program. Starting today, Block72 will begin to attribute a percentage of its revenue from new client contracts to purchasing STPT tokens. The tokens purchased will be locked up for the duration of the client contracts in a public address that will be displayed on the STP Network website for anyone to view.

To start, the company says it will kick off the participation by locking up $1 million worth of STPT tokens over the next several and posting the contract address on the website for public transparency.

Mike Chen, founder and CEO of Block72 said:

“We have been deeply involved with the STP project and are big believers in its to become the global standard for tokenized asset issuance and transfers. Launching on the PoB program further strengthens the alignment between Block72 and STP Network, and in the long-term, we aim to integrate the STPT token as an incentive alignment mechanism within our ecosystem of media partners, funds, token projects, and growing global community.”

STP Network launched a decentralized for digital asset issuance powered by the STPT token that ensures the compliant offering of tokenized assets. After raising $7 million USD from prominent investors in private rounds of financing, STP secured an additional $750,000 through an Initial Exchange Offering on Bittrex earlier this month.

Block72

Block72 is a global digital asset investment bank specializing in blockchain and distributed technology. The team is led by senior management from global investment banks and management consulting firms such as McKinsey & Company, Ernst & Young, and HSBC. They work closely with promising blockchain projects around the world from their primary offices in San Francisco, New York, Beijing, Shanghai, and Seoul.

About Standard Tokenization Protocol

Standard Tokenization Protocol is an open-source standard defining how tokenized assets are issued and transferred while complying with all necessary regulations at the token level. Standard Tokenization Protocol allows digital assets to become fully compliant across jurisdictions and transferable across any platform.

Standard Tokenization Protocol Launches Proof of Business Program And Announces Block72 as Inaugural Partner


Source: coinspeaker
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