Why Tokenization is Important and how Blockchain can Transform Industries
Tokenization is one of the many areas that blockchain technology has already transformed, changing our understanding and approach to the use of tokens. It has become one of the most promising means for online exchange due to its ability to represent real assets in the form of virtual assets.
With the introduction of blockchain technology, tokenization applications that previously helped protect users’ personal financial information, and the security of their transactions, have received a completely new ‘use case’. The word “tokenization” in the context of blockchain refers to a highly secure process of converting property or financial assets into digital assets.
It is important to understand that blockchain networks provide encryption and traceability of each transaction within the informational block. As a result, tokenization based on blockchain technology offers an open, risk-free, and forward-looking solution for the valuation and management of any valuable asset.
Thanks to blockchain technology, a wide range of real assets – and even businesses – can be safely and efficiently tokenized. Surprisingly, the arguments surrounding the methods provide a convincing argument in favor of tokenization, which has various unique advantages and uses cases in many sectors.
Decentralization is a built-in advantage of blockchain technology. Some of the problems caused by excessive centralization include manipulation, bureaucracy (overly complex procedures), and unfair distribution of benefits. Any process can benefit from decentralization, optimizing its operations by putting the entire chain of intermediaries on an equal footing.
Why Does Tokenization Work?
Tokenized assets can represent full or partial ownership of other assets, such as real estate, vehicles, precious metals, and more. Moreover, the tokens themselves can fully or partially embody these property rights. Users can divide each investment, property, or other investment into different tokens, each with its own unique number. As a result, individual investors with smaller amounts of cash can have the opportunity to explore the investment market and get acquainted with various profitable options without having to join investment funds. Tokenization has been creating new opportunities in the real estate market since 2017.
Tokenization can reduce the final barrier to entry into financial markets by simplifying investor registration procedures. This is perhaps the most important advantage of tokenization. As a result, even in the absence of a stock exchange, tokenization can provide significant prospects for creating a securities market. Tokens can simplify account registration and ownership registration, as well as simplify other elements of transactional operations.
Tokenization of precious metals such as gold, platinum, or silver can allow the creation of tokens that are guaranteed to be stable tokens, tied to the value of precious metals. This allows users to avoid a lot of volatility and potentially hedge inflation when buying them. Also, the use of such tokens as a means of payment for goods or services in retail allows businesses to avoid losing the value of a product or service with the daily volatility of cryptocurrencies.
How Companies can Receive Access to the Creation of Tokenized Assets
Core States Holdings, Corp. has developed products based on the PTPWallet platform that allows companies from any industry to tokenize their assets and enter into the crypto realm. On the basis of the PTPWallet platform, we are helping businesses tokenize their assets on blockchain networks such as ERC-20 or BEP-20; alongside other networks that offer flexibility. With this possibility, businesses are receiving a platform allowing them to offer eligible users tokenized assets alongside a wallet (with support of over 400+ currencies). Additionally, this platform provides the company with; the functionality of selling tokens, exchanging cryptocurrencies, support of their custom token (be it ERC, BEP, NFT, etc), and the receival of a crypto payment gateway for their partners. All these products are under the brand of the client’s company, allowing businesses to further enhance the trust of its community & users that they are owning the tokenized assets and are a legitimate company.
The PTPWallet is very flexible towards external integration and has the ability to add any functionality needed by companies.
“Core State Holdings Corp’s provides clients with a customized blockchain solution that will enable them to expand their business, attain their vision, and increase customer confidence in the company.,” says Oleg Cheine, CEO and Co-Founder of Core State Holdings Corp.
Tokenization provides endless opportunities for businesses to test out new markets, being either a user or a creator. Tokenization will continue to expand in the foreseeable future, and you will definitely see more news about it globally as more countries and businesses begin to decrease their reliance on the USD and the Euro.