What Is the Process of Tokenization or How Can Any Person Create His/Her Own Token?

tokenization

In this article, we will consider such a concept as tokenization. We will learn how it is used by various companies and how the technology of blockchain is used here.

Contents:
(please, click the topic to scroll down to it)

  1. The concept of “tokenization”
  2. The process of tokenization in the modern sense
  3. Tokenization in tandem with blockchain technology
  4. Conclusion

1. The concept of “tokenization”

Initially, tokenization technology was used to implement secure online payments. With its help, you can encrypt the data of real details and replace them with the generated hash code – a token. This is how the first concept of tokenization looked like, and the modern designation, which is now widespread in blockchain projects, has gone from there. Today the word “token” refers to a unit of an asset in a certain company.

2. The process of tokenization in the modern sense

Tokens can be compared to the labels that fill the desktop of each computer. Shortcuts are created in order not to litter drive “C” with heavy files, but at the same time to have quick access to them. Shortcuts are just the way to the program, folder, etc. If you delete a file where the shortcut leads, then the latter will not represent itself any more.

So, by analogy with the creation of shortcuts on the computer, in our time, the business is tokenized in various spheres of activity. Tokens can be created for anything (electricity, oil, gold, cattle, wheat, real estate, part of any enterprise’s funds, intellectual property, etc.). Tokenization works with both physical and virtual objects. This practice greatly simplifies and accelerates the mobility of assets, because you need logistics, a certain amount of documentation to move a real object, and the converting of the token is slightly more than nothing.

Tokenization of homogeneous objects is a fairly simple task. For example, one token is equal to 1 gram of gold, but it can be further divided into smaller parts. It is necessary to increase the liquidity of the asset. Tokenization problems arise if the items that need to be transferred to the digital space have different values ​​(real estate, art objects, etc.). In this case, this process becomes a little more complicated, since it requires the contribution of additional variables. Platforms that offer to tokenize heterogeneous objects already exist (Artex, Atlant, etc.), but each of them is confined to its own narrow niche.

3. Tokenization in tandem with blockchain technology

Probably, it seems strange, but in fact, the technology of blockchain is not mandatory to produce a tokenization of the project. Actually, anyone can make an issue of tokens, backing them up with any of their tangible or intangible property. To do this, you only need to run the platform, where you can transfer the rights to own the asset in the token.

Then why do the overwhelming majority of projects use blockchain technology for the tokenization of their own assets? It’s all due to the transparency that this technology provides. With its help, it is guaranteed that there is no third-party intervention in the data registry. ICO tokenization in tandem with blockchain eliminates the issue of confidence in the developers. Also, the undeniable advantage of using this technology is the absence of intermediaries between buyers and sellers of assets, which simplifies and significantly speeds up the exchange process.

4. Conclusion

The process of tokenization involves the transfer of tangible or intangible assets into the digital space (tokens). This significantly increases the liquidity and mobility of the asset. With the help of blockchain technology the process can be completely transparent and safe, and also you can remove any intermediaries from the chain.

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LinkedIn Names “Blockchain Developer” the Top Emerging Job of 2018

LinkedIn, a social network for finding business contacts and job opportunities, has published its annual Economic Graph, where it listed top-5 emerging jobs that develop at the quickest pace among the others. It did not come as a surprise for many people that the top-1 emerging job was “blockchain developer”.

The profession of a blockchain specialist has experienced a growth by 33% during 2018. In comparison, the job that occupied the 2nd place, a machine learning engineer, grew by 12%. The rest of the top-5 are: application sales executive, machine learning specialist and professional medical representative.

The cities with the highest demand for blockchain specialists are New York, San Francisco and Atlanta, and the top industries involving such workers are IT and computer software. The salaries absolutely correspond to the popularity of the profession.

We remind you:

Facebook Is Once Again Looking for Blockchain Specialists

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Hyperledger Will Add 16 New Members

The major blockchain project Hyperledger, the technologies and instruments of which are incorporated in multiple other startups all over the world, announced its future cooperation with 16 giant companies.

The list of new members includes:

  • Citi
  • Deutsche Telekom
  • Alibaba
  • etc.

The growing Hyperledger community reflects the increasing importance of open source efforts to build enterprise blockchain technologies across industries and markets,” said the CEO of Hyperledger, Brian Behlendorf.

In this way, blockchain will be promoted in the major businesses of the world, which undoubtedly means its growing popularity in almost every sphere of human activity.

We remind you:

Visa Partners with IBM to Implement Cross-Border Blockchain Payments of Hyperledger Fabric Framework

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South Korea Launches Remittance App Using Ripple’s Blockchain Technology For The First Time

One of the biggest South Korean crypto exchanges, Coinone, has presented a new web service and a remittance app called Cross. It uses RippleNet for providing faster and cheaper payment services for citizens of the Kingdom of Thailand and the Republic of the Philippines.

To release this payment service, Coinone Transfer, a subsidiary of Coinone, utilized Ripple’s blockchain technology, as well as Siam Commercial Bank (Thailand) and Cebuana Lhuillier (Philippines).

Ripple emphasized that Cross does “not rely on traditional banking rails,” i.e. comparing to other remittance options, Cross plays in an absolutely different league.

The press-release also stated that South Korean remittance services had been limited due to high fee for overseas transactions. Cross, by contrast, provides a total transaction fee of 1%. Moreover, it offers “bulletproof security” for customers.

We remind you

SWIFT Created A New Payment System To Protect Blockchain and FinTechs Provided By Ripple, JP Morgan, and Transferwise

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Facebook Is Once Again Looking for Blockchain Specialists

Being a social media giant, Facebook could not turn a blind eye to blockchain. It actually launched a whole department devoted to the research of this technology and was looking for a manager for this department some time ago.

However, none of the representatives of Facebook have revealed any detail as to what they are planning to do with blockchain, which caused a wave of rumors starting from the assumption that Facebook is going to release its own cryptocurrency to the one claiming that Facebook was working on a blockchain network, planning to outrun Ethereum.

The truth is still unclear, but the fact is: Facebook is definitely working on something. It has listed 5 vacancies for blockchain developers on its official site. Considering the fact that it is Facebook and also the rate of salaries for blockchain specialists, there surely will be a huge fight for these 5 jobs. We remind you:

Blockchain Specialists Receive the Highest Salary Among Software Developers

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SWIFT Created A New Payment System To Protect Blockchain and FinTechs Provided By Ripple, JP Morgan, and Transferwise

SWIFT has announced in its latest press-release that it decided to launch a new payment service – Global Payment Initiative (GPI), which is still in pilot version. The system is aimed at combating threats that bring harm to blockchain and other fintech solutions of such institutions like Ripple, JP Morgan, and Transferwise.

The main target of the pilot is “to build the foundation of a new integrated and interactive service that will significantly improve efficiencies in the payments process and which will ultimately be made available to all 10,000 banks across the SWIFT network.”

The GPI tests were conducted in October to try cross-border payments with banks in Thailand, China, Australia, and Singapore. The trial showed that using GPI-system payments could be carried out almost instantly.

According to SWIFT, the pilot GPI system starts working in the first half of 2019. It will cooperate with 15 financial institutions, including Bank of China, JP Morgan, CitiGroup and others. The service provides full transparency to payment beneficiaries and originators.

We remind you

What Is Happening Between Swift and Ripple and Why Does Ethereum Suffer From It?

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New Trend: Why Companies Replacing the Term “Blockchain” to “DLT”

Due to harmful hype to innovative chain of transaction blocks, some companies use “DLT” instead of “Blockchain”, which stands for Distributed Ledger Technology.

The term replacing begins with that some organisations, in their advertising and informational campaigns, decided to change the word “Blockchain” to “DLT”. Such a move connected with the hype about the blockchain technology. Therefore the companies, in order to take some of the negative from them,went on that kind of cunning. In this regard, an independent analytical company Forrester Research has made their own investigation.

Company analytics point out, that “Blockchain” is a trend-word of crypto industry, which many crypto projects abused. The word is used even when the technology isn’t used in the product. The usage of “Blockchain” for the hype invalidate the technology itself.  Since, the blockchain in general is associated with cryptocurrency, when the company which are not related to the world of cryptocurrency, decided to go away from the naming technology and started to use the word “DLT” , in order not to associate their activity with the digital money.

Meanwhile, the word “Blockchain” overtakes the word “Cryptocurrency” by frequency of requests in the world search, according to the Google Trends.

Source:Google Trends

We want to remind you:

The Number of Searches for “Bitcoin” in Google Has Skyrocketed

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