1. What is tokenization token release? What are tokens and how do we share them?
2. Token breakdown
3. What is tokenization?
4. What is a token issue? Advantages of tokenization
Before we discuss the process of creating and issuing tokens, we need to explain what tokens are. We will also explain for which needs tokens have become a solution. First of all, the virtualization of everyday life and the fact that more and more business processes have been digitized, shape the need for new solutions. This is done on many levels. We strive to automate and streamline many processes. Let’s explain the concept of the enigmatic term “token”. If we would like to do it in the simplest way, it is a certain “symbol”. A synonymous term here is also the term “marker”. The most adequate epithet to illustrate the concept of a token is “a digital token”. Thanks to this token, we can transfer material and tangible values into the virtual world. What is tokenization and token issuance? To bring this process closer, let’s first explain the division of tokens.
We divide the tokens into:
• convertible – that is, thanks to which we can make payments. They are the digital paper we give value to;
• immutable – thanks to them we present the digital value of tangible objects. Examples include works of art or luxury goods. We can treat these unique tokens as a kind of certificates through which we confirm the authenticity of the value. An example would be NFT (non-fungible token).
Let’s keep in mind that many of us use the terms “cryptocurrency” and “token” interchangeably. This is because both solutions are based on blockchain technology. However, they are not identical. Issuing a token allows you to deal with much more issues.
Tokenization is the process by which we create tokens or cryptocurrencies. We assign them to a specific project, company or person. The issuance of a token is most often practiced in business. What does issuing tokens give us? First of all, thanks to the unlimited nature of tokenization, we can fully secure the projects we implement. It is, in a way, a form of security based on partnership. In this way, we also certify the ownership of unique items. We often meet the demand of companies to finance their projects or investments. By issuing tokens, we can raise funds through barter with investors. Provided, of course, that these investors have purchased tokens that they can use for specific items or services. If we want to create tokens, we need to use special tokenization platforms. They contain adequate digital infrastructure, thanks to which the issuance of the token is possible. Through this platform, we are also able to manage our token system.
If we were to list the advantages of tocanization and issuing tokens, then security should be indicated as the main one. Blockchain technology also helps us streamline business processes. So let’s take advantage of “smart contracts”. If we use tocanization in an industry such as, for example, real estate sales, we will also increase the chance of transparency in transactions. In addition, we reduce transaction costs by eliminating the need to engage intermediaries. In the future, tokenization in business will be the norm, so now let’s get acquainted with the multidimensionality of operating digital assets.