21st March 2020
Recent estimates put the present value of all real-world assets around the world at around $ 256 trillion.
Although this declining number is relatively stable, all of these assets change hands on a regular basis.
Unfortunately, the processes used to trade these assets are completely outdated.
Owning the vast majority of real-world assets still means pieces of paper.
That's why most transactions can take weeks or even months.
Asset trading is also plagued by a lot of bureaucracy, countless fees and various geographical restrictions. In addition, most assets are very difficult to distribute, making their markets highly illiquid. Real estate, gold reserves and fine arts are great examples here.
Fortunately, with the recent development of tokenization, the way real assets are owned and traded may be on the brink of a real revolution.
Tokenization is an innovative process in which real-world assets are marked by digital tokens existing in a blockchain network. Once tokenized, the tokens essentially become digital stocks with irrefutable proof of ownership. A major upgrade to any paper tokenization system is the way we will manage assets in the future.
Why token assets in the real world?
Whether we are tokenizing real assets or intangible items such as intellectual property, we are creating an unrivaled liquidity environment that facilitates secure and fast transactions.
What's more, we can trade real assets with digital tokens on a blockchain without the need for third-party brokers. Instead, blockchain's immutability deprives transactions of any attempts at fraudulent attempts.