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5 Benefits of a Tokenized Asset!

A tokenized asset is an excellent fundraising strategy with transparency, credibility and greater profitability for companies and individuals.

It is a process that is becoming popular because it is applicable to the most varied market segments, business models and, in particular, to all types of assets.

Whether a tangible asset like a property launched by a construction company or an intangible asset like an artist’s copyright, there is no good that cannot be represented by tokens and traded on the blockchain with the security used in the cryptocurrency market .

In addition, tokenization meets two requirements of today’s business world: agility and democratization of access.

People and small businesses want to participate in opportunities. A collector can tokenize works of art and a small industry can trade tokens from receivables .

The result? A greater number of investors, in less time and with greater profitability. How is this possible?

How can tokenization boost a company’s business?

In this article, BLOCKBR will show the main features and benefits of a tokenized asset and contribute to the understanding of this revolution!

WHAT IS AN ASSET?

Asset is any form of resource that can make up the equity of a company , family or person, has commercial value and determines the degree of wealth of those who own it.

Assets can be divided into two categories according to their shape.

TANGIBLE ASSETS

These are assets that can only be physically represented and are among the best known: real estate, equipment, machinery, vehicles, works of art, furniture, inventories, inventories, reserves of precious metals, collectibles and others.

A differential of this type of asset is the incidence of depreciation – the accounting devaluation due to the obsolescence of the asset .

INTANGIBLE ASSETS

These are assets that cannot be physically owned and that are usually complex to evaluate: copyrights, trademarks, trade names, patents, artistic and sports careers, credit rights, loans granted and franchises.

Also in this category are domains, websites, blogs and accounts on social networks, due to the appreciation that these items give to the brands to which they are linked.

Outra classe de ativo intangível cada vez mais popular são os criptoativos – criptomoedas, redes de blockchain e os contratos inteligentes.

FINANCIAL ASSETS

These are intangible paper assets, but they must be viewed differently as they are associated with existing contractual agreements and represent financial rights and guarantees.

Among the best-known financial assets are financial market products: stocks, debentures, court orders, fixed or variable income securities, investment fund shares, forward and futures contracts.

No mercado da tokenização, são os chamados security tokens.

WHAT IS TOKENIZATION?

Tokenizing means creating a digital and encrypted file that represents the value of an asset, whether tangible, intangible or financial, to be offered on the market to investors or buyers.

Tokenization is an excellent alternative for a person, group or company to raise the necessary capital for other growth projects more quickly, transparently and securely.

It is a rapidly expanding process around the world because it brings together a series of benefits in line with the way business is conducted today, such as a focus on process simplicity and agility.

Devemos ressaltar a importância do contrato inteligente na tokenização, pois ele é que comanda todo o processo, não só durante o período de oferta do ativo tokenizado, mas também nas remunerações futuras.

WHICH ASSETS CAN BE TOKENIZED?

WHICH ASSETS CAN BE TOKENIZED?

Strictly speaking, all tangible or intangible assets can be represented in tokens to be offered on the market through a blockchain .

There is no legal or operational barrier to tokenizing assets . Even real assets regulated by the Securities and Exchange Commission, such as shares and shares of investment funds, can be tokenized .

Por outro lado, é preciso submeter o ativo à análise de uma empresa tokenizadora de ativos, como a BLOCKBR para avaliar:

  • The market value;
  • The cost-benefit ratio of using tokenization ;
  • Tax regularity (proof of ownership, tax compliance, etc.).

It is important to note that not only the assets are tokenization objects; it is possible to generate tokens from projects where there is potential for generating wealth that remunerates investors.

A good example is mining projects, where the company can raise funds for mine development and appreciation of metal tokens such as gold.

As we can imagine, there are no limits to creativity when it comes to tokenizing to generate capital . With the benefits offered, this strategy becomes even more attractive!

5 BENEFITS OF A TOKENIZED ASSET

1 – DEMOCRATIZATION OF INVESTMENT

One of the most outstanding features of the tokenization process is the possibility of dividing the asset into a large number of parts of lower value – this is the fractionation of the asset .

A construction company, a property manager and even an individual can offer a property tokenized in hundreds or thousands of fractions instead of offering the asset in a single token.

With this, a much larger number of people and companies, especially small and medium investors, will be interested because they will have access to the values of the tokens , accelerating the process of selling shares and increasing the attractiveness of the asset .

The amount of token fractions is unlimited, as the blockchain does all the management (100% electronic), the receipt of values from buyers, the delivery of quotas and the remuneration provided for in the smart contract .

2 – TRANSPARENCY

All transactions within a token asset offering are processed on the blockchain and recorded on a digital ledger within the network. Each transaction receives a unique identification key.

All peers (points or computers) keep individual copies of the histories, so that if a malicious computer managed to tamper with one of them, that version would not be accepted by the others and the user would be rejected from the network.

With this, tokenization is transparent , increasing people’s trust, especially those who are not used to investing.

3 – EFFICIENCY

If we are always surprised by the processing power and speed of many software, applications and platforms, the surprise can be multiplied many times over when we talk about blockchain technology .

And the efficiency differential is not only in the processing speed, which is independent of the amount of tokens and the conditions to be administered, but also in the tokenization contract , which defines the effectiveness of the entire process.

4 – SECURITY

The entire tokenization process is carried out on a blockchain , a large technology ecosystem, composed of supercomputers that have the obligation to validate each transaction that is made with cryptoassets.

As soon as a tokenization smart contract is entered, these system nodes (the machines) will have the same version of the contract and this prevents one of the points in the network from being defrauded.

As for data security, blockchains , as a matter of principle – and for being responsible for the security of operations with cryptocurrencies and stable coins – use the most advanced security protocols .

5 – COST REDUCTION

Tokenization follows one of the most important premises since the creation of bitcoin : decentralizing the process of offering assets, removing from it the agents that exist in traditional market operations.

Depositaries, custodians, management teams, management software in token issuers (or controls exposed to failures) are barriers to forming a more attractive price and directly impact the profitability of the operation.

BLOCKBR Digital Assets is a fintech that combines technological innovation and digital knowledge to transform physical assets into digital ones, in the asset tokenization process.

The offer of tokenized physical and financial assets, both current and new, is democratic and decentralized, which makes investing safer, simpler and more efficient.

We enable, structure, issue and offer tokens on our platform and beyond. Be aware that tokens depend on feasibility and regulatory factors.

Do you want to tokenize your business or part of it? Do you have a business solution and does it make sense to issue your own token ?

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