I actually think that should be the new slogan for crypto.
Like, "build it and they will come." Something iconic that will be remembered throughout the ages.
Plus it almost rhythms so there is that.
Also it has a ring of truth to it. Or maybe the other way around, "If you can tokenize it, then you can sell it?"
The future is tokenization. I know it, you know it and at some stage the rest of the world will know it. Of course this can be done as a singular nft that represents the one item like a splinterlands card or it can be a way to divide a single item into many parts called fractional tokenization.
It just makes too much sense for it not to happen. In fact it's already happening. The possibilities are endless so lets look at what has already been happening before trying to predict where the technology will lead us next.
Tokenization is the process of converting rights to an asset into a digital token hosted on the blockchain. To put it simply, tokenizing something means making the storage and management of an asset digitally represented by tokens. These assets can be either physical or digital and our world is surrounded by them.
When something is being tokenized, the asset itself isn’t being changed but, instead, the way the ownership of that asset is managed is being altered.
Ref: 101blockchains
So we can take any item online or the real world and build a specific token to represent it. In these cases it can be a whole item or else fractional tokens.
Think buying 1/100 tokens representing a property. The cost of the property is divided by 100 and sol to multiple parties. You could even tie voting rights in with these tokens to decide whether to rent or sell. What price the rent will be. What the token is worth. There is a lot of flexibility involved with tokenizing assets like this.
It opens the door to so many different possibilities and sectors that we can only begin to think off. Then with nft's you can program a token with data to represent a specific set of attributes such as splinterlands cards. These tokens can be bought, sold, combined ect... and all of the data for this is tied to the cards themselves.
If I was to make a list right now of interesting items to tokenize,
Among many others.
What's the point you may ask. Surely it's unnecessary. In some cases yes but it opens up the doors to partial ownership and micro investments.
They are currently looking at sell offers and this would be the perfect launch pad for tokenizing a mainstream asset. A multi billion asset that very few people can afford but millions of people care deeply about and would love to own a piece of.
One of the buyers even wanted to create an offer that included fan support to buy the club.
So what could he have done. Under the old monetary system this would have been very hard to pull off but with blockchains and tokenization it is a lot simpler.
Create £1B tokens to represent the value of the club.
Sell those £1B tokens at £5 or whatever the equivalent value is.
Everybody who buys a token is funding the purchase and buying a piece of the club. You can bet that they would sell fast.
Set up a DAO to vote on large decisions based on your stake in the club.
The tokens are fluid and can be traded on the open market without effecting the club itself.
Any profit can be paid out to token holders.
A further sale would need approval from the majority of token holders and buy back all of their tokens at the agreed price.
It would be an interesting example of the true power of tokenization and really catapult crypto into the mainstream if a feat like this could be pulled off.
There have been similar, small examples already such as in the property market where a lot of firms are already offering property tokens like Honeybricks
Imagine an apartment building in your favorite city that’s worth $10 million. Ownership of the building is tokenized into 1 million tokens. Now imagine that you paid $10 to own one of these real estate tokens. You would own one-millionth of the value of the underlying apartment building. If the property is sold, you would receive one-millionth of the sale price. When rents from the apartment building are received, you would earn one-millionth of the net cash flow. If the real estate asset depreciated in value, you could claim one-millionth of that depreciation value on your taxes. If the apartment building gains value over time, perhaps because of a rental price increase, the token price would rise above $10 commensurately. After a the initial holding period, you could sell or trade that token to other eligible investors.
Ref: Honeybricks.
That is their business model and one which is going to be adopted across multiple industries going forward. Taking expensive products that are out of the reach of the majority of investors and offering them a chance to be part of something bigger in smaller amounts. Opening up investment to the masses. This is what i was talking about earlier in the post and it's already out there and growing.
I can see so many opportunities in this space and as the blockchain world itself matures and we see some serious business launching into the market, i guarantee that we will see marketplaces for people to buy into property, art, games, companies, ect.... We are not fully there yet but we are getting there.
Just like crypto has removed barriers to banking and stocks, tokenization will remove barriers to ownership of assets.
It's what excites me the most about this space on top of the other advantages to blockchain technology. It's open to everybody with very few barriers to entry. This removes power form the established businesses and traditional sectors that were previously closed off to the likes of me and you.
