Tokenization is one of the most disruptive consequences of blockchain technology. This process promises to transform society towards a more materialistic and commercialized vision, where people can value and exchange any element based on their supply and demand.

Ltokenization is the transformation and representation of an asset or object within a blockchain. To achieve this, tokenization involves a transformation process that takes the properties of said object. This transformation process consists of digitizing said object and bringing all its information to a block of a blockchain. Once registered, it can be exchanged or stored. During this process, said object is granted a token that allows such an object to be manipulated as an integral part of said blockchain.

The best thing about all this is that blockchain tokenization can be applied to practically anything. From a drink, an asset, documents, identities, a house, to every item that comes out of an industrial production line. PPractically anything could be tokenized.

This situation could profoundly transform different processes, such as a supply or marketing chain. A tokenization in a supply chain will be able to improve its security, while adding transparency and traceability reducing costs for intermediaries.

Tokenization and the transformation of the world

Undoubtedly, blockchain technology opens doors to a whole universe of possibilities that were previously difficult or complex to solve. This transformation began in the first place in the economic aspect and despite this, it continues to spread. And is that the potential of blockchain technology and tokenization is gigantic. Even today, we cannot imagine the possibilities of a decentralized and secure system like this.

And, what has captured the most attention in the world is precisely the fact of being able to access information securely from anywhere. To this we can add, the ability to take data from an object or elements, to dispose of them in a decentralized network that can be accessed with high granularity and low costs. An achievement therefore within the reach of very few systems.

Example: Tokenizing the world

A company has several production lines and wants to have a record of each of its products, the parts that make it up and every element that is part of these lines. All the information produced by each of these elements must be recorded as if it were a large industrial log.

At the same time, the company wants access to said information in real time between its different departments. All without overlapping permissions or accessing information outside their working limits. In addition to this, the system must be open enough to allow third-party auditing in real time.

Thanks to tokenization and blockchain technology, a system with these capabilities can be built without major difficulties. We can unite elements such as the Internet of Things (IoT) and other elements of the industry to build what we know as Industry 4.0

Well, all this is possible thanks to the use of blockchain technology and tokenization. And although the example talks about a company and its production line, it can be applied to any other circumstance. Consequently, the tokenization of the world as we know it, will mean redefining it.

Tokenization scheme

Advantages of tokenization

The tokenization process has a number of advantages, among which we can highlight:

  1. Allows represent digitally any aspect of reality on a blockchain.
  2. Enable the ability of a traceability absolute for each object or tokenized asset.
  3. Generate systems that can be audited completely or easily discriminated, facilitating this task.
  4. Increase the transparency and the fullfilment of security requirements of computer systems.
  5. Open the doors to nuevos schemes, work and security structures in all areas.
  6. Decentralizes the intrinsic processes of the tokenized system, which ends up offering greater control, privacy and security in them.
  7. Allows reducir that intermediaries and with it back that costes de operation.
  8. Cut Back la duplication de information and adds redundancy to the processes that handle it.

How much do you know, cryptonuta?

Is tokenization only applicable to economic systems or payment systems?

FALSE!

Although payment tokenization is one of the uses to be developed initially, this process is not limited only to these services. Virtually every tangible or intangible element can go through a tokenization process. And from there have representation of a token. The process is clearly different for each element, with some shared properties, but the end result is the same: a token representing an element, a tokenized element.

Some real cases of tokenization

Although all cryptocurrencies are a token, there are some cases of tokenization that go beyond financial or economic use. Some of these real and functional cases of tokenization are the following:

Steemit

This is a social platform that allows its users to write and interact with each other. The end of this is reward them not only for the generation of content but for its curation. To make it, Steemit uses the tokenization of all the actions that its users carry out on this platform, such as writing an article.

Maersk TradeLens

The global container giant has a platform called Trade Lens. This is a blockchain platform that allows you to tokenize each container and its contents to carry out a detailed tracking of it throughout the world. The system allows real-time tracking of each container and access to all the information on it. The system was designed by Maersk e IBM and it works under the technology of Hyperledger.

Carrefour Blockchain

This is another real and very close example of tokenization the food control blockchain of Carrefour. This blockchain aims to enable a straceability service on food processing. The objective of this tokenization of food is to provide consumers with access to where the products come from and thus guarantee their quality. To do this, the user only has to scan the product's QR code and will have access to all this information stored on a blockchain. The Carrefour system has been built using the initiative of IBM Food Trust.

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