For some conservative people, tokenization technology is still a strange thing for them. You might be in the middle between embracing the solution it offers. If you spare a minute of your time daily to read about the relevant topic, you will quickly find more sentiment news about it than its negativities.
It is actually straightforward since many industries have done it for decades, especially the financial industries.
All in all, tokenization technology solutions can make every transaction and payment processing much simpler and faster. In the digital transformation, tokenization solutions are mostly backed by blockchains.
For those who have been familiar with the blockchain, we have known that these offer security, privacy, and speed. It can also cut the intermediary fees exponentially. In the end, the expensive fees of the transaction would be the least of your worries. So, what is asset tokenization services, anyway?
What is Asset Tokenization on the Blockchain?
The real process cycle of tokenization process can be challenging to understand, especially for average users. However, you just need to grab the basic idea and its foundation to proceed with the principles of tokeniation. In a nutshell, asset tokenization can be described as a conversion process of real assets into digital assets.
Yes, what we mean by real assets are the physical ones, such as gold, silver, collectibles, real estate, works of art, vintage cameras, and so on. Many people know that it is hard to liquidize most of these assets. When you want to share the ownership, for instance, it will be hard to divide them. It is impossible to break your vintage guitar into chunks to share the ownership. The other problem with real assets is that you need to pay expensive fees for the intermediary services. If your customers are living outside your country, you will need to conduct more complex work and pay more expensive shipment fees. Cross-border transactions of physical assets have never been easy.
But now with the asset tokenization platform services, one does not need to worry about that anymore. The tokeniztaion solution can make those assets more liquid. It will be easy to share the ownership with the other parties, without having to break them up into chunks.
The ownership rights transfer will be executed on the blokchain. In this case, the rights will be transferred to the tokens. That is solid proof of the ownership. This will also overcome the barriers in cross-border transactions.
Both asset owners and their buyers no longer need to rely on centralized services to process their transactions and ownership transfers. Smart contracts have replaced intermediaries, automating the process, which results in savings in time and cost for both parties. Although the ownership can be transferred, it does not change the fact that the physical assets do exist.
The asset tokenization process
The asset tokenization process is straightforward.
The first thing to do is to evaluate the asset. The thing is that not all assets are suitable for tokenization. If the particular assets already have a market, then it will have huge potential for tokenizing. Not all assets are familiar to most folks. But you can request valuation by the professionals to assess the particular assets first.
The professionals will come up with the results which can help you to conclude the valuation of the specific assets. By then, you will know whether it is worth tokenizing it or not.
The following step is to select a business model for tokenization.In this case, the asset owners will need to specify the goals and milestones of the relevant project. The business model components include the detailing operation, dividend revenues, sources, target buyers, market segment, and so on.
If you have ever used a token or crypto before, you must be familiar with the cap market of the tokens. If you are about to create the tokens of your assets, you will need to find out the numbers of the tokens which you will distribute to creators, developers, investors, and other participants of the projects.
Finding the best developers to help you out is very important. The tokenization solution is available on the net, but not all of the providers provide equal quality of service. INC4 is one of the most prominent developers who can help you actualize your own ideas into reality. You will need to hire the right team to help you with the complete cycle of asset tokenization. INC4 professionals will help you from zero to hero so that you can focus on doing your business core while your assets are being tokenized by the experts.
The next thing to consider is the legality of the assets. It is important to work together with a legal person to help you with the legality of your asset tokens. The last thing you want is to need to deal with legal problems because of the different rules in your target destinations.
The launching of the white paper is also very important in order to introduce your project to the public. People need to know the basics of your projects first before making a decision. The white paper content will revolve around the token explanation, backgrounds, business models, revenues, perks of the project participants, and so on.
If you have an amazing presentation and white paper, the audience will likely be convinced of your project. And they will likely invest in it.
The best tokenization solutions
The tokenization solution should be handled by experienced and renowned professionals in the field. You will find a lot of providers whom you come across. But not all of them will really give what you require and need. You could instead focus on the most renowned development companies like INC4.
INC4 is a reputable software company that can provide you with the best tokenization technology that matches your needs and requirements. Tokenize your assets now with their help. You won’t regret your decision.