What is Asset Tokenization?

Disclosure: Author of this post owns Tzero tokens

Asset tokenization is the process of converting real-world assets, such as real estate, artworks, commodities, or financial instruments, into digital tokens on a blockchain or distributed ledger technology (DLT) platform. These tokens represent ownership or a fraction of ownership in the underlying asset.

Tokenization allows assets that were traditionally illiquid and difficult to divide into smaller units to be represented as divisible digital tokens. These tokens can then be easily bought, sold, and traded on a blockchain, providing increased liquidity and fractional ownership opportunities to a wider range of investors. This reduces barriers to entry for investments in traditionally exclusive or illiquid assets, providing broader access and potentially increasing market efficiency. Additionally, tokenization enhances transparency and reduces the need for intermediaries, as the blockchain records all transactions and ownership changes.

Ravencoin was created specifically to tokenize any asset, whether real and digital, and it is the only “human readable” blockchain where the asset you are tokenizing is represented in the first layer of the chain. This means that ANYONE with internet access can look on the Ravencoin blockchain explorer and see the details of that asset (all transactions, ownership changes, and even any documents or videos associated with that asset). Ravencoin is an immutable public ledger where anyone can see what’s happening on the chain- in real time. There is no central authority that can “shut down the chain” and anyone with a general purpose computer can run a node (maintain the ledger). This is not the case with Proof of Stake Blockchains such as Ethereum or Tezos.

Although asset tokenization is still an evolving concept, and its implementation and regulatory framework vary across jurisdictions, major players such as Ice Exchange (NASDAQ and NYSE) are rapidly advancing in the movement to tokenize real world assets. Ravencoin, a platform specifically designed to tokenize assets, is on the radar of these major players. Ice Exchange invested into Tzero (owned by Overstock Inc) which allowed developers to work on Ravencoin during company hours from its earliest days. Since Ravencoin is a fork of Bitcoin (free code released to the public), all efforts in development are volunteered. It is owned by the public, for the public. The stock market is running on 1980’s technology, and is in need of an upgrade. Ravencoin blockchain was purpose built with this upgrade in mind.

Here’s how Ravencoin is used for asset tokenization:

1. Asset Creation: Ravencoin allows users to create their own custom digital assets, which can represent a wide range of real-world assets, such as real estate, intellectual property, precious metals, or even virtual items in video games. These assets are represented as unique tokens on the Ravencoin blockchain.
2. Token Properties: When creating an asset on Ravencoin, users can specify various properties for the tokens, including the name, quantity, divisibility, and ownership rules. This flexibility allows for the representation of different asset types and customization to meet specific requirements.
3. Ownership and Transfer: Ravencoin enables the transfer of asset tokens between users through its peer-to-peer network. The ownership of assets is recorded on the blockchain, providing a transparent and immutable ledger of ownership history. Tokens can be transferred easily and securely, allowing for efficient ownership changes.
4. Asset Metadata: Ravencoin allows users to attach additional metadata to their assets via IPFS. This metadata can include information about the asset, such as descriptions, images, or relevant details. This feature enhances the transparency and usefulness of tokenized assets, providing potential investors with more information.
5. Community Governance: Ravencoin operates as a decentralized network, with no central authority controlling the platform. Instead, it follows a community-driven governance model where token holders can participate in decision-making through voting on proposals. This governance structure allows the community to collectively shape the future development and direction of the platform.

The Ravencoin blockchain aims to facilitate asset tokenization. It currently costs less than $10 in $RVN (as of writing June 2023) to purchase a main asset name to begin your journey. Follow @WAGMINFTnet on twitter for the latest.

-Written by @Sunnie4mj on twitter