Every day I hear about people who are trying to tokenize different kinds of assets. In my last posting I wrote that – in my opinion – all tokens will have collateral – whether that be their equivalent in goods and services; as a balance of e-money on a client account; or as shares in a start-up. I ought to say immediately that this does not apply in the case of fully-fledged cryptocurrencies (with their decentralized issuance and processing), and there’s no sense in calling these ‘tokens’. There are several conclusions to be drawn from this.
1) Everything capable of being tokenized, will be tokenized (including shares, money, warehouse receipts, square metres, loyalty programs, and so on.
2) These tokens will be issued in multiple blockchains (and in fact, it doesn’t really matter where).
3) There is no reason to include the capitalisation of such tokens within the overall capitalisation of cryptocurrencies – since if a token represents certain assets, the form by which it’s accounted for doesn’t alter its essence.
Thus there’s a situation in which we at Distributed Lab have been involved in tokenization for some time – but it’s only recently that we have tried to formalise the processes with which we have to deal. The presentation gives a brief rundown on what’s what.