Token is a unit of accounting for assets in all types of Information Technology (IT) projects, so we can compare it to shares on the stock market. As part of the ICO procedure (Token issuance), they are put into circulation to attract funds to IT initiatives to lend and monetize additional services for IT project participants.
Tokens are calculated to use the blockchain and access to them is done by digital signature and using special programs. This is a for ownership of the electronic asset.zamIt provides protection. After all, each transaction contains data on all transactions previously carried out with the tokens of the IT project, moreover, the information is not stored on a single central server, but by all network participants and therefore the database cannot be hacked.
Tokens are managed using smart contracts (for example, Crypto Miner Token) and their development is usually implemented in Blockchain or Ethereum protocols in accordance with the ERC-20 standard.
Tokens usually have the following characteristics:
- Witnessing the share of shareholding rights in the IT project;
- can act as a reward (bonus) for some service of a startup, for example, helping to attract investors through the advertisement of a project, etc.
- they can be used to play the role of currency in a closed system (IT) – to purchase services and project services.
Due to the tokenization of assets, real goods and services are tied to Tokens, such Tokens are called “asset-backed”. For example, one Token can equal 1 square meter of residential area or 1 liter of gasoline. The redemption (calculation) is guaranteed by the company that circulates the Tokens. While exchanging iota btc converter available. This technology helps the firm's product to be more liquid and increase its sales. Or when a customer accumulates or buys a certain amount of Tokens, he develops a loyalty program that he can then exchange for goods and services from the company, for example, a movie ticket.
The current real estate market is complex, azamIt is regulated at level I and has a high entry threshold. Therefore, more and more companies and investors are turning to new solutions. One of them is the tokenization of real estate rights on the blockchain. For example, investment firm AssetBlock launched the eponymous platform for trading tokenized commercial real estate on the Algorand blockchain on September 17. Users of the new platform can buy Tokens and become co-investors in a $60 million hotel complex. On September 16, the Harbor platform announced that it has tokenized shares of real estate funds in excess of $100 million. The media regularly features news about many startups that offer to tokenize real estate or buy and sell Tokens for it. DeCenter laid out how such platforms work, what the risks are for investors, and the prospects for the development of this segment.
Why Is Real Estate Tokenized?
It is the world's largest asset class, with a broader market than real estate, bonds and stock markets. The combined value of all investment category properties exceeds $200 trillion. The professionally managed global real estate investment market has grown from $2016 trillion in 7,4 to $2018 trillion in 8,9.
But traditional real estate investments are not for everyone. An ordinary investor can afford to buy 1 or 2 residential properties. Investing in commercial real estate is generally only seen as more economical for institutional investors, developers and funds.