Tokenization is a strategy that is no longer new to become a presence in businesses of all sizes and segments. But is asset tokenization safe?
This is a recurring and natural question, after all, tokens are new to the market, despite the fact that the growth of the latter has been great.
Transactions with tokens in the country doubled when comparing the months of January 2023 and 2022. Out of every five online payments using credentials, two are tokenized.
Predictions show that Brazil will lead innovations with tokens from 2023. The Brazilian entrepreneurial mentality is more predisposed to new technologies and the government has been creating measures to improve the legal environment for the use of tokens.
Therefore, as this market advances, more companies will use blockchain technology in their businesses – and others will need to invest in order not to lose competitiveness.
BLOCKBR, a native web 3.0 company, will talk about tokenization security and other data that help you better understand this new technological frontier in the markets!
WHAT IS ASSET TOKENIZATION?
Tokenization is the process of representing a good or right through an encrypted digital asset – the token – with the aim of trading it on the market, either in direct negotiations or as an investment product.
The tokenization process is done within a digital environment that is known to be the birthplace of cryptocurrencies: the blockchain, a distributed database – without a central server and without central authority – with the highest data and transaction security protocols.
It is important to emphasize that the tokens represent the value of the asset associated with them. They do not have a market value in themselves, they are excellent vehicles for offering assets.
Fixed income investments and variable income: see the differences!
WHAT ARE THE CHARACTERISTICS OF A TOKENIZATION
FLEXIBILITY
There is no industry limit, business model or asset characteristic when it comes to tokenizing; a small construction company can tokenize real estate and remunerate its investors with the revenue obtained, and an industry can trade its receivables in tokens.
DEMOCRATIZATION
It is possible to convert an asset into several tokens, offering lower value shares and attracting more investors, especially small ones. This also affects the liquidity of the tokenization, as the base of potential buyers increases significantly.
AVAILABILITY
Unlike brokers and banks, customers will invest in tokens through marketplaces that run around the clock. This increases the efficiency of the offer, as the person can invest at dawn or on a weekend.
IS ASSET TOKENIZATION SAFE?
Absolutely yes, for whom it is offered and for investors in tokens! We can highlight the fundamental elements for tokenization security.
BLOCKCHAIN
The large block network uses the most advanced data security protocols on the market – it is the network that has invested for over 20 years in protecting cyberattacks against cryptocurrencies, one of the most desired assets on the planet.
SMART CONTRACT
The smart contract is the brain of the operation, the digital document that will generate, 100% electronically, all steps of tokenization, from transactions to deadlines, entry conditions and how tokenists will be remunerated.
For example, if an FIDC token provides monthly payments, the smart contract will make payments without human interference.
DECENTRALIZATION
On blockchain, there is not a single server to store the data. Each computer (or point) on the network is a server in itself and must have exactly the same information base as the others;
- When a person wants to buy a consortium token, for example, each network point must electronically validate with the data it has;
- The transaction is only allowed if all computers approve;
- Once approved, the transaction is inserted into a sequence of data blocks with a unique identification – the hash.
It is impossible to enter a fraudulent transaction – buying at a lower price or acquiring tokens from an already closed project – as it would have to be validated by the entire network. With this, the consensus protocol, as it is called, guarantees the transparency of tokenization.
WHAT TYPES OF TOKENS ARE THERE
SECURITY TOKENS
Security tokens are tokens of negotiable assets, securities that are regulated by the CVM – shares, guarantees, bonds, debentures and others. They are a typical example of tokenized investment, where the value of the token is related to the financial asset.
SUPER STRUCTURED TOKENS
These are the tokens of real assets, one of the best known in the market being the tokenization of real estate, when it is possible to fractionate a property and negotiate shares of it with more investors.
STRUCTURED TOKENS
Also known as receivables anticipation tokens, they are an excellent way to earn passive income with rates above the market – the owner of the asset exchanges a negotiation with a bank (and a high discount) for the sale of fractions of the receivables.
UTILITY TOKENS
This category is not directly related to investment, but has become popular for being an innovative marketing strategy – they are access tokens to exclusive customer services. The best example is the fan token, but they can be applied to all business models.
HOW TO TOKENIZE ASSETS WITH BLOCKBR
Tokenizing an asset or right is simple and secure when done with a tokenizing company that has project experience and deep knowledge of the markets.
The first step is to know the asset, its commercial, legal and tax characteristics to define whether it will have a good cost-benefit ratio with tokenization.
After this step, we have:
- Definition of business rules for offering tokens (value, deadlines, entry conditions, form of remuneration and others);
- Creating the token (or token fractions) on the blockchain;
- Creation of the smart contract;
- Distribution: making tokens available on a token sale platform.
BLOCKBR takes care of all the steps for your company to use tokenization as a highly effective strategy to raise funds and develop the business!
CREATE AN ACCOUNT AND PROFIT WITH TOKENS AT BLOCKBR!
Tokenizing is simple and investing in tokens is even more!
To buy token, you just need to open an account at an asset tokenizer like BLOCKBR and a digital wallet to store your investments.
Afterwards, access our marketplace of token projects and choose the offerings that align with your investor profile and your expectations of gains and risks. You will find offers where you can start investing in tokens with 50 reais!
BLOCKBR Digital Assets is a native fintech web 3.0 that brings technological innovation and digital knowledge to transform physical assets into digital ones, in the tokenization process.
The supply of tokenized assets is democratic and decentralized, which makes the way of investing safe, 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 ?