Definition and use of tokenization
The term tokenization represents a denomination or division, i.e. the creation of a digital one Mapping of physical or virtual assets. Through the securitization Ownership can be mapped via a digital token.
For example, if a real estate company is tokenized, investors can use their digital buy shares. The owner will share in the value of the company by owning the tokens.
Tokenization can be applied to the entire company or only to a selected one property. The same principle also applies to a textile company, be it a textile manufacturing company or trade. The whole company or just a single label can be tokenize.
A perfect example is also a car garage that deals in vintage cars. Through Tokenization allows the company to maximize liquidity, hence more classic cars buy these restore and sell.
Through tokenization, the company gains global investors, regardless of geographic location. This results in investors expressing interest in the end product and the company thus wins customers.
Due to demand, the purchased token increases in value and so does it Trading volume of the token.
In this way, the investors and the company can use the token resell for a much higher price, providing more liquidity.
Existing companies as well as startups can be easily tokenized and their
Enjoy liquidity advantages.
Interesting business
The interesting business for investors is staking (investment) of tokens. What is staking?
Staking is a process whereby investors receive rewards by investing their tokens in crypto Lock wallets and use them to validate network transactions or as a source of liquidity for make available to others.
Consensus in a PoS network is achieved through validators staking their coins.
Validators are participants who are selected at random and verify that a transaction is valid and correct.
The original concept of standard staking in proof-of-stake networks is becoming more common used in DeFi apps by users staking their coins and thereby additional income can generate.
Staking is becoming increasingly important within the crypto community as more and more users want to make profits from their cryptos on DeFi platforms. This type of business was made by Banks and other central financial institutions dominate. The Decentralized Finance System (DeFi) offers users the opportunity to deposit their cryptocurrencies into liquidity pools, in order to to make capital available to other users and earn additional income in return to generate.
