Bitcoin, cryptocurrency, blockchain, ICO, STO and what not! All these have become the fuzzword these days; disrupting the financial and technological environment completely. And all these did not come alone; they brought with them some or the other sort of opportunities that add to the beauty of the present system.
As the Bitcoin heralded the cosmos of cryptocurrency, there was no clue that it will bring untold opportunities with it, which could remodel the manner of looking at assets and investments.
Blockchain - the decentralized network squeak in the world of investment. Through blockchain, the asset that else is illiquid can be divided into smaller parts into which participants of the market can take ownership by investing in it. This way, investors can acquire a position in a large asset with smaller amounts in the terms of business model as “ tokenized asset offering”.
Let’s dive with more information for you to understand what is asset tokenization, why we all focus on launching tokenized asset offering platform :
What is Asset Tokenization ?
By now, we all are au courant about the astonishing features of blockchain that not only provides transparency but an immutable distributed ledger keeping records of transaction secure and accessible.
Now imagine, real assets entering into the realm of blockchain in the manner of decentralized protocols, enabling multiple investors including small investors to take a stake in a particular asset.
In the simplest words, Asset Tokenization is the facility of transforming the physical assets having economic value into digital form, say token, which can be stored on the network of the blockchain. This, with enhanced liquidity, transparency and data integrity, brings remarkably positive effects to the aspect of trading and investment.
Are still in doubt? Needs more clarification? Alwintechnologies is there to assist you, with a facility of 24/7 online chat support.
The Working Mechanism of Asset Tokenization :
Though the asset tokenization seems so simple, actually it is not!
An asset, in order to be tokenized, needs to be evaluated and audited that involves few steps. Upon the completion of asset valuation, it can be converted into tokens and can be availed to investors as an investment option. With this, investors have one more investment avenue, thereby enabling them to diversify their portfolio by putting money in multiple investment instruments. This helps in safeguarding against risk.
While tokenizing, supply increases with the rising numbers of the investors causing the prices to elevate. This is due to the fact that the capital increases with the increasing market players thereby making the underlying asset more expensive which in turn tends to push the prices of tokens up.
Now the investors have the option to sell the tokens at appreciated prices or get dividend thus enhancing the ROI.
Advantages of Asset Tokenization :
The idea of asset tokenization becomes enticing due to the presence of blockchain in the entire system as it poses many benefits. First and foremost benefit is the immutability in the entire system. The data related to ownership and transaction of the tokens once entered, cannot be erased. Even it can’t be edited easily.
The universal applicability and accessibility come as merit. What all are needed to get benefit from this is a smart phone having internet access and credentials to access the information, and a person can be part of the system from any part of the world at any point of time. The companies like Alwin Technologies make it easier for you to be a part of excellent support by providing guidance at every step.
Transparency helps in staying relaxed and assured that none of the parties gets bamboozled through in the name advancement.
And the cost-effectiveness comes as an additional benefit. The smart contract controlling the blockchain helps in knocking out the requirement of any extra infrastructure or application that might add to the cost.
Technology Behind on Asset Tokenization :
Now comes the essential part, the crux of the story, the element behind the beautiful picture – A top-notch technology. Tokenization of assets requires advancement to the classic blockchain.
For this purpose, one will need a sharing platform over which all the mechanism will take place. And one requires a protocol consisting of the chain of smart contracts for transferring the legal rights and making payments. Additionally, wallets will be needed for facilitating the storage of tokens.
Tokens might seem similar to cryptocurrency, but unlikely the real world tokens can be either utility token or security token. The utility tokens provide access to future products and benefits attached, whereas the security token provides with ownership in the asset that can be converted into economic value for the purpose of investment purpose.
Tokenized Asset Offering (TAO) - An Avant-Grade Investment Business Model Behind Asset Tokenization!
In the investment world, there always remained a dis-union among the asset type and earning potential. This a common phenomenon that the asset having a huge potential of earning are generally illiquid in nature, on the other hand, the assets which are liquid in nature does not provide alluring returns, mostly.
Tokenized Asset Offering comes as a phase of change from ICO & STO , a game changer. With tokenized asset offering service, the barriers like high cost, geographical boundaries, and limited capacity to invest in large assets owing to less investment amount gets eradicated.
Asset tokenization or tokenized asset offering business model paves the way for small investors to enter into investment in big underlying assets including commercial real estate thereby providing them a chance to generate good returns while enabling large investors to diversify their portfolio.
This is what makes tokenized asset offering a fruitful deal that is worth looking! To start token asset offering platform, Feel free to contact the experts on TAO development services >>
We will be more than happy to see you onboarding and launching a successful asset tokenization & tokenized asset offering project !