Tokenization brings more market opportunities

Tokenization brings more market opportunities

Recently, my world has turned over. Every day Distributed Lab receives projects with blockchain ideas, but in August there was something special. 9 projects came with the ideas of tokenization of one or another asset. Tokenization is commonly referred to as the tokens issuance on a certain blockchain with some collateral. But this is, so to say, the tip of the iceberg. This was the case earlier, but at the moment it made us think about the internal causes of this phenomenon. On the other hand, for a long time already we have been concerned about why ICO tokens are traded at such a high price in relation to start-ups that have moved much further in terms of business development? In addition, we have always been looking for ways to implement the mission of the company – to build the Financial Web. It waved in front of our eyes as the top of the mountain in the clouds, but the paths for climbing were completely hidden. As a result, following the forefeeling, we started to describe our entire experience in building accounting and trading systems with the use of blockchain (exchange, depository and payment systems), without yet knowing where it would lead us. This is how the TokenD framework was born, the purpose of which was to describe the best practices, security standards, code, functionality and usability of accounting systems. But the most interesting thing happened later – when we began to combine the assumptions and facts into the theory necessary for the development of the ecosystem and the construction of technology. It has appeared that “tokenized” assets are more expensive than ordinary ones! At first it seemed that the matter was simply in raising the liquidity and convenience of trading, but this is not all – the information shell adds the properties to an asset, not inherent to it previously. For example, the possibility to track all its previous owners (let’s recall “bloody diamonds”) or vote (hello to the unions of owners of multi-apartment buildings). This is interesting already, since it enables you to release a huge amount of value, now covered with a thick layer of silt of paper accounting. The last couple of days together with Gordon Einstein we have been discussing examples of this in the past and forming the specific steps (my previous post about the steak was not accidental!). To be brief, the next 10 years will bring a lot of surprises.

Illustration by Katerina Krashtapuk

Pavel KravchenkoCryptographer, founder of Distributed Lab