In this contemporary world, everything becomes technologize and why not assets?. Assets are part of everyone's life and play a vital role in the need of money. So keeping it secure is becoming mandatory and while searching a way for it, then there comes Tokenization concept.
Tokenization is nothing but generating tokens for real-world assets. Developcoins is one of the Best Digital Token Development Company which offers its Prominent Token Development Services both in off-shore & on-shore with the aid of Blockchain Development experts.
Anyway, here lets we can lookout below more about the Tokenization concept.
In the Blockchain platform, token got a special place that is because of it is beneficial traits that lead it to become a trend among the people. Tokens are developed by relying on the existing blockchain so it is cost-effective. And when coming to tokenization it is nothing but refer to the concept of creating tokens, which will be molded with real-world assets.
Anyhow, the other alluring motive of the tokenization concept is its build to protect the digitalized data for 24*7 from hacking and store securely, which is one of the major tempting traits of the token. when the data is becoming digitalized then it can be tokenized to ensure its security.
This awesome concept Tokenization is introduced in 2001 by TrustCommerce in the motive of protecting the data over it is full lifecycle. Tokenization is combined with end-to-end encryption to secure data transactions in tokenization system, where tokens replace the original one. To avoid the risk of stealing data from low-trust systems like the Point of Sale (POS) system, the data encryption must occur before entering the POS system not another way around.
Encryption takes place within the confines of a security-hardened and validated card reading device and data remains encrypted until received by the processing host, to secure payment data from advanced threats, now widely adopted by industry payment processing companies and technology companies. The PCI Council has also specified end-to-end encryption (certified point-to-point encryption—P2PE) for various services that can be implemented.
Well, in the global market all sort of blockchain people, begin to transfer the assets into tokenization for security purpose and became a demanding one in the market because of the following traits,
There are many ways to classify the tokens, they can be single-use or multi-use, reversible or irreversible, authenticable or non-authenticable, cryptographic or non-cryptographic and numerous combinations are available. So it makes difficult to split the tokenization into proper categories.
Anyway, based on the payment processing this tokenization can be categorized into two types, they are,
High-value tokens (HVT)
High-value tokens (HVT ) is served as surrogates or fodder for primary account number (PAN) transaction, which acts as a tool to complete a payment transaction. To complete the transaction, they should look like actual PANs. Where multiple HVTs can map back the single PAN as well as a single physical credit card, without being aware of an authorized person.
This HVT can be bound with any specific devices like smart devices like smartphones, which allows to flag the geographic locations when malpractice occurs.
Low-value tokens (LVT)
It can also be referred to as security tokens and it also acts as surrogates for PAN transactions but it serves for a different purpose. However, the low-value token cannot complete the process alone without matching back to the actual PAN represent. Using tokens to protect PANs becomes ineffectual if a tokenization system is breached, therefore securing the tokenization system itself is extremely important.
Asset Tokenization is nothing but which resembles the process of converting real-world assets into digital assets. To get a much more clear idea read the below example.
If you are in need of money then you can use your business share or gold or land or apartment to get money in case of an emergency. While your in need of 10lacks and your house worth or share is 1crore then you can convent it into 1crore token (else as per need) and sell a particular percentage alone, like 10% to receive the amount. When someone got this 10% of share then they become authorized people for that share and it will be updated in the smart contract. Only after proper payment and after facing the conditions (which is developed by knowledge of both parties) the ex person can regain the 10%.
Suppose if the person buys all token regarding 1crore share then they will become 100% owner.
The immutable nature of Blockchain makes the token ownership unbreakable. This point makes clear that why blockchain tech is implemented in such platforms.
There are various types of assets in this modern world and for which you plan to secure safely then they seek the unique way for it and there come to this tokenization concept. Lets, we can list some assets which can be tokenized,
Here we can see some of the properties tokenization in detail.
Buying or selling the property is a difficult task in this fast-growing world and when using tokenization in this platform, it makes the things possible for all sorts of peoples. And it aid to expand the real estate investment in markets.
The trending and fast money gaining way in this current situation is selling or buying the shares. But there is a negative impact in this way that is many peoples are getting cheated. So, using tokenization for all the share of the assets will assure safety.
After reading the above topics, it will be clear that any sort of real-world asset like private share, companies, building, land, gold, etc can be tokenized as per the needs and priorities of the specific person.
This astonishing tokenization concept pros and cons are explained briefly beneath.
All fortunes will come with small unfortunes by that say, before achieving these peak advantages some challenges need to face. They are,
Anyway, by using the right techniques these challenges can be handled and also can overcome.
Well, to use this tokenization concept, first tokens should be created and that mission can be accomplished with the aid of Best Token Development Company. And where to find this worthy Company to get Striking Tokenization Platform Development Services?. Here, is the answer, Developcoins is the Elite Cryptocurrency Development Company as well as one of the Reputed Asset Tokenization Platform Development Services providers across the globe and they got a special place in the market because of their unique approach plus also because they provide complete end-to-end Token Creation Services to launching services for their cherished clients.
Do you want to create a token for your enterprises start-ups and any of your real-world assets?