Real assets are being tokenized and thus proving the maturity of the ecosystem being built, but what are the uses and how can we use it?
What is tokenization?
Tokenization is the transformation of a real asset into a digital asset, for which it is necessary to fragment it into encrypted units, which are basically tokens. These tokens work on the blockchain and all transactions, movements that occur with or within it, are recorded on the network. With this, these tokens are produced in such a way that they can be subdivided, exchanged and stored in decentralized ledger technology (DLT). Since, among the assets that can be tokenized, we can mention: NFTs, company shares, bank digital currencies, patents, intellectual property, royalties and other possibilities. A great example is Itaú had a card with numerous passwords. Upon entering the bank, he would ask for a password that corresponded to a specific number. This card was physical. Then, it was migrated to iToken, a digital version of the physical card, in which passwords were generated according to a protocol and the serial number of the device linked to the person’s CPF. As a result, today anything can be tokenized, in theory any asset can have its digital version. Recently news of asset tokenization in the real estate sector has been discussed, this can bring several benefits and utilities beyond the purchase. Thus reducing bureaucracy, increasing liquidity, greater security, ease of dividing the property if necessary and much more. We are just getting through the beginning and its potential promises a lot.
Safety
A common question in this universe is about security. What differentiates a token from a security token? Although the token is a real asset in the digital version. But security comes from securitized assets. Remember that goods are goods and rights. Thus, securitization can be promoted so that they can be sold on the market at a premium or discount, guaranteeing a return to the buyer.
How companies can use tokenization
Tokens, which represent assets, are a clear way of recording information from their production or creation to consumption. Asset tokenization consists of instant transactions that can optimize and expand the existing market for goods and assets. Some of the benefits of generating tokens: Lower costs: As many processes are automated and maintenance is transparent, HSBC research shows 90% savings in bond issuance and 40% reduction in funding costs compared to private alternatives, according to research. Greater transparency and regulatory compliance: Blockchain is transparent and immutable. Visibility into everyone’s transactions and history, with proper access to the blockchain, promotes risk reduction as complex compliance requirements can be managed and programmed directly into the token. Brand Positioning with NFT: Recently, several brands such as Nike, Havaianas and Reserva have tried to position themselves in this market, thinking of taking advantage of the opportunity to connect with consumers through digital media. In this way, some companies have strategies to run campaigns with restricted access to certain collections or NFT items. This gives even more importance to brands in consumer perception with the image of a modern and current company, especially among younger generations and a greater attachment to digital media.
