Tokenization: Entering The Consolidation Phase
By Laxmikant Khanvilkar
Tokenization of everything possible on this planet – including the household collectibles, real estate assets to instruments like U.S. Treasuries and as exotic as smart contracts – is gaining traction as mainstream investors fancy their chance with this replica of real world assets or RWAs offers an opportunity to create liquidity.
So why are we discussing “Tokenization” at first place while the crypto’s are bleeding….
Oh, yes we know cryptocurrency is an entirely new breed of asset — from bitcoin to ether to dogecoin – they are virtual digital currencies, also known as “magic internet money” – they are often misunderstood and hence scare away uninitiated investors.
Tokenization, on the other hand, takes assets from the “real” world and puts them on-chain, marrying the perks of blockchain with assets from the real world.
Let’s hear it from our guest Mr Kushaal Patel on How does tokenization work, What are the basics of tokenization.
So, what we have understood is.. you tokenize Real world Assets and use them as collateral for monetizing assets which otherwise would remain idle… interesting stuff….
Yes through the Tokenization process you can transform anything including intellectual property and start generating income. Let’s start with a hypothetical. “Think of someone running a YouTube channel on basics of cryptocurrencies … .a creator could tokenize that copyright and sell it to a financier.
This type of model exists in the world of larger music companies and private equity.
Now Let’s hear more from Mr. Vijay Gir on the significance and security of tokenization as well as the different kinds of tokenization.
Tokenization is not a new tech; it’s just getting new adoption and recognition.
CryptoPunks, Rare Pepes have been in existence since 2017, the time of the arrival of tokenization.
Since then, the infrastructure has improved, the onramps are smoother, institutions are token-curious, and surprising economic forces have spurred adoption.
Recently, Tokenized U.S treasuries surpassed the $600 mn mark.Let’s hear it from from Mr. Dhruvil Shah for his views on the same
The after effects of FTX and others may have had a negative impact on the new age technology, but that’s a momentary reaction given the enormous possibility of digital currencies and virtual digital assets.
The list of advantages is endless…well the merits are favorable and outnumber those negative arguments… very soon we may have a situation when the world will truly become tokenized…
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