With the rapid popularization of cryptocurrency and blockchain technology in the world in recent years, the digital representation of real-world assets in the form of pass has begun to attract many people’s interest.
Token allows individuals or entities to convert real-world assets into encrypted tokens stored on the blockchain. Although the stock market has made the world aware of its effectiveness, blockchain based tokenization provides several noteworthy advantages, including security, low overhead and personal ease of use.
In the United States, a considerable number of real-world tangible assets have been certified on the blockchain. So far, the ownership of paintings, real estate and even precious metals has been recorded on the blockchain.
In addition, because virtual items can also be endowed with value, the digital collection market has become one of the most enthusiastic adopters of this technology.
The world’s first digital garment
After works of art are put on the chain, because tokens can naturally have the ability to allocate asset ownership, blockchain based tokens can be easily used in the art industry.
For example, paintings or sculptures worth thousands or even millions of dollars can be jointly owned by multiple people holding specific digital tokens.
Buyers do not even need to buy ownership of the painting itself, but can buy some tokens, which account for a percentage of the whole painting or art.
After that, token holders can trade their shares in the secondary market to make profits, or they can directly trade with third-party individuals. At the same time, the painting can also be displayed in art installations, galleries or museums at the same time, so as to bring passive income to token holders.
Although theoretically it can be achieved even without blockchain, asset chaining can achieve higher transparency and eliminate human error and malfeasance.
In addition, in the case of inheritance, if each member leaves a fixed number of tokens, family disputes can be greatly reduced.
Real estate chain
In terms of real estate, a single property can be divided into multiple units and purchased by many stakeholders at the same time.
Ownership details are permanently recorded on the blockchain to ensure that ownership is never challenged. If users want to sell their share of property (for example, 1% of the luxury house), they can sell freely without the coordination of other investors.
On the contrary, users who want to double their investment can simply buy more tokens related to the asset.
In the future, you can buy a single share of commercial real estate assets (such as the Empire State Building) at a price of $10, or invest $100 to develop LEED (leadership in energy and environmental design is a green building evaluation system focusing on energy and environmental protection in the United States) certified housing projects.
Real estate centered token transactions can also increase the liquidity of asset owners. Real estate appraisers will become more like stock analysts, because once the property is linked and traded with tokens, the market value of any building will be clear at a glance.
Like art, Cryptocurrency has been used to buy real estate. However, it remains to be seen how the world will accept ownership of some assets.
With the soaring land prices, it is entirely possible that tokenization is the only way for the middle class to invest in real estate in the near future.
Game asset uplink
As video games are increasingly transformed into social experiences, virtual items and collections in games (such as cards, skins and unique characters) now have monetary value.
Like anything else, game assets can also be represented in the form of digital tokens and recorded on the blockchain. Although a few games have created a prosperous economy, users are usually limited to the game’s own ecosystem.
Universal tokens enable game developers to easily create real value from rare game items. In addition, it provides them with an alternative source of income completely driven by the needs of players.
The effectiveness of tokenization has been demonstrated on several online platforms, including Ethereum based cryptokitties, which allows users to trade and breed encrypted cats. Launched in late 2017, it is known for blocking the Ethereum network with one hand. Many cryptocats are sold for thousands of dollars worth of eth.
Tokenization can completely change the entire asset class in the near future and enable new monetization, income and investment methods.
Blockchain based ownership records can be as destructive as computers were decades ago. However, so far, few countries in the world have adopted tokenization and blockchain technology. With some notable exceptions, such as Malta and Switzerland, governments are still drafting specific regulations for the digital asset ecosystem.
Responsible editor: CT