Tokens are incredibly versatile, finding applications across different industries. Are you wondering whether you can benefit from it as a business owner? Here are some interesting use cases that prove that tokenization might be for you!
Tokenization opens new possibilities in front of businesses, helping them become less centralized and more digitalized and capture value in a secure way. More and more companies across sectors are convinced to try it out, which fuels the growth of tokenization platforms. They enable the users to tokenize their services and use tokenization as a tool to streamline data exchange. If you have never used a tokenization platform before, we have gathered some things worth knowing. As a rookie, you may find them really useful to understand the basic concepts related to the topic.
What is tokenization?
Let’s start from the very basics. Tokens are digital assets with a value attributed to them. They are kept on blockchains – distributed ledgers that store information on immutable, encrypted chains. Since no central unit is involved in processing this data, they are much more secure and cyberattacks-proof.
Tokens are not equal to cryptocurrencies – cryptocurrencies represent a type of token. While each crypto has its own blockchain, the tokens can be created on existing blockchains. That’s what the tokenization platform is for. Token’s role is securely to store value in a digital way, and that can serve various purposes. Today, we gathered the most interesting ones!
#1 Tokenization in logistics
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Logistic companies are starting to use tokens for two essential purposes: authentication and payment. Traceability is the main issue in the supply chain due to its level of complexity, and NFT tokens solve it. Businesses can use it to validate the origin and quality of the transported goods in a simple and secure way.
#2 Tokenization in real estate
It is becoming increasingly common to invest in real estate using tokens. The property owners attribute the issued tokens to the particular property and make it available for investors. Instead of taking part in a time-consuming traditional purchase process, they can quickly establish a deal using a Smart Contract without worrying about the security of the transaction. Such a solution increases the availability of real estate, making the market more democratic. And real estate companies or owners get access to more potential investors, which is a considerable advantage.
#3 Tokenization in arts
Whether you observe the art market or not, you have probably heard about NFTs in the context of selling artworks. Non-fungible tokens make the art world more accessible while empowering the creators. They can easily transport their work to digital and sell it without any intermediaries in a safe way
NFTs certify the authenticity of the artwork since each token of this kind is unique. That facilitates copyrights control and makes the transaction also secure for the customer. These are only some examples of a token’s business potential! Even if they do not correspond with your activity, tokenization may serve you in many other ways!