Tokenization is the process of creating a digital representation of a real-world asset using blockchain technology. This digital representation is known as a token and it can be used to represent various types of assets, such as real estate, commodities, and even art.
Brickken, a decentralized application (dApp) company, is creating an infrastructure that allows companies to bring their assets on-chain and self-fund themselves through Security Token Offerings (STO). This enables individuals and businesses from any walk of life to access illiquid markets that were previously inaccessible.
The benefits of tokenization are numerous. Firstly, it enables fractional ownership, meaning that an asset can be divided into smaller parts, allowing for more people to invest in it. This also means that investors can invest smaller amounts of money, making it more accessible to a wider range of people.
Secondly, tokenization provides liquidity to previously illiquid assets. Traditional assets, such as real estate, are difficult to sell quickly because of their high value and the complicated legal processes involved in transferring ownership. However, tokenization allows for assets to be traded on blockchain-based exchanges, providing liquidity and making it easier to buy and sell them.
Thirdly, tokenization reduces costs associated with traditional ownership and transactions. Tokenization eliminates the need for intermediaries such as banks and lawyers, who typically charge high fees. This reduces the cost of buying and selling assets and makes it more accessible to a wider range of people.
Fourthly, tokenization provides transparency and security. The blockchain-based nature of tokenization means that all transactions are recorded on a distributed ledger that is transparent and immutable. This provides security and ensures that there is no fraudulent activity.
Finally, tokenization allows for greater governance and control over assets. Smart contracts, which are used in tokenization, are self-executing contracts with the terms of the agreement directly written into code. This allows for greater control over the asset and how it is used, providing a secure and transparent method of governance.
In conclusion, tokenization is an innovative solution that provides numerous benefits to businesses and individuals. It enables fractional ownership, provides liquidity to previously illiquid assets, reduces costs, provides transparency and security, and allows for greater governance and control over assets. Brickken’s infrastructure aims to bring these benefits to a wider audience, making it easier for individuals and businesses to access illiquid markets and prepare for a new, fully tokenized reality.
As a Brickken partner, we help companies tokenize their assets with Brickken. Through this partnership, we can provide our clients with the benefits of tokenization and access to Brickken’s best-in-class interface and decentralized management system. Together, Brickken and Tertie are leading the way in adopting tokenization and helping businesses prepare for a fully tokenized reality.
