The Most Useful Tokenization Solutions 2021
The tokenization process might sound a bit new for some of you. However, it looks so simple and straightforward for many people involved in serious industries because of its simplicity in giving solutions for transacting without hassles.
The tokenization solution makes the payment process much simpler and faster. But more importantly, these transactions backed with the blockchain are much safer and borderless. This activity helps create seamless payment experiences, improving the beneficial relationships between the customers and partners. INC4 is ready to help you embrace tokenization technology to your business premises to attain the same benefits. But before going further, you might want to cover the basics first. Let’s start with the tokenization meaning first.
What is Asset Tokenization on Blockchain
Although the process of tokenization can be complex, it is easy to comprehend the basic idea of the asset tokenization solution on the blockchain. It is defined as a process of converting real assets into digital assets.
We are pretty much familiar with many tangible assets such as real estate, precious metals, collectibles, arts, and others in real life. In common cases, they are illiquid, so that it will be hard to divide them and break them into chunks. Not to mention that many investors will go through such complicated processes thanks to those intermediaries. The transactions across the globe have been challenging when it comes to these tangible assets liquidation.
With the tokenization technology, one will no longer need to worry about the ownership rights transfer in a particular asset. It is because these rights are transferred to the tokens on the blockchain. In turn, it will decrease the barriers and eliminate the complexity of intermediaries.
Both asset owners and investors can make their assets more liquid by automating and cutting all of the fees of the centralized system. While the rights are transferred into the tokens, the real-world physicality of the assets will remain.
Asset tokenization process
Since you have covered the basics of the tokenization solution, it is now the perfect time to bring out the tokenization process steps. Without further ado, here are the typical steps to take to tokenize certain assets.
Evaluating the asset
Not all assets are worth tokenizing. Assets with a ready market can have huge potential to get tokenized. Some assets might still be new in the world of tokenization technology. If that’s the case, one can request the valuation done by the professionals. Ones will need to check if the assets can be effectively tokenized and avoid any pitfalls that may be underlying.
Determining the business model
Choosing assets is the foremost thing in the steps of the tokenization process. But then, the business model will dictate all the outcomes. The creators will need to have a clear objective of how the project will operate. When defining the business model, there are some factors to consider, such as key operations, revenue shares and sources, consumer demographics, selected market, etc.
Token economic settings
The creators will need to determine the cap market of the tokens. They need to figure out the exact numbers of the tokens distributed to the creators, developers, investors, and other concerned parties. Creating sustainable economics for the tokens is very important to make sure the future-proof project will happen.
Hiring the best provider
The tokenization solution is available right there. You might have some ideas in your mind, but you need to turn them into reality. Unless you are a professional coder yourself, you will need to hire the right team to help you tokenize the assets. INC4 is one of the best teams of developers out there. They will offer you such great solutions while you can have room to focus on your core business.
Legality
A formal blockchain network should be able to run while being compliant with the law because it is still connected to the physical assets.
Reaching out to a professional legal person will help you a lot. Legal advisors can help you to avoid the pitfalls and stick to the particular regulations in your country.
Launching the white paper
Many people haven’t known anything about the particular project. When you own an asset that you tokenize, you will need to inform your potential buyers and investors, as well as your partner, about what it is. The whitepaper will inform the commoners of the basics of the token, business model, revenue sources, and the benefits of joining the project. INC4 will help you in writing the white paper for your project.
Early users testing
The MVP development is one of the most conventional steps in the product launch. The main objective of this step is to introduce the platform to early users.
As they have the opportunity to use the platform, it will help you to find out if the tokenization projects already have great features for the users.
Pitching the investors
The potential investors will need to be there for the project to run. At this phase, I will also want to check the regulations, paperwork, and so on.
Prototyping
It will revolve around the creation of the tokenized assets. Early adopters must have their objective opinions and feedback at this point. The asset owners will once again explore the features of their tokenized assets.
Dive into the market
After going through the previous steps, the work does not stop there. It is time for the asset owners to put theirs into the marketplace. Hiring a good team for the job can be a significant step to market the assets effectively.
Best tokenization solutions
When it comes to tokenizing your assets, you will find many providers offering the tokenization solution. But these services are not created equal. Your chance will be great if you deal with the best company for the service, such as INC4.
INC4 has years of experience in providing the best tokenization technology for their clients across the globe. Convert the ownership of any assets into tokens now with INC4. You can also book a free consultation with them.
