Tokenization Is Changing The World

in LeoFinance28 days ago

Sometimes it takes a while for major changes to become noticeable. Things tend to start slowly before building. As more people join in, we see things are more evident. At some point, it becomes to hard to ignore.

Tokenization is a concept that those in the cryptocurrency world are very familiar with. However, most of the planet does not understand this idea. To them, the revolution that is taking place is completely unknown.

That does not mean, however, that it is not happening. Because it is. And some major players are starting to be very aware of the benefits of it.

While we often discuss individual sovereignty, the reality is governments have an interest in tokenization also. Not all governments are equal. Thus, many have an incentive to embrace this technology and run with it.


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Tokenization is a great equalizer. This is a point that many overlook. We have to keep in mind that removing the friction from a system while also cutting off the rent seekers opens up enormous sums of money for productive purposes.

These are the types of ideas that are starting to penetrate the consciousness of those who are looking at this industry. The benefits are becoming evident to anyone who paying attention.

Of late, NFTs grabbed the headlines. We now have celebrities such as Paris Hilton going all in on them. Certainly, there still remains much to work out but the foundation (concept) of NFTs is sound. Innovation will change out that sector looks over the next couple years, finding use cases that simply cannot be ignored.

Essentially, we are moving towards the token economy. Whether one is ready for it or not is a matter of personal debate. However, there is no doubt that it is coming. NFTs are not only going to be applicable to art but also a host of other asset classes such as real estate.

The reason why this is the case is because of digitization. This is a process that started some time ago yet is accelerating. We are not going back to an analog, physical world. Instead, more of the real world is going digital. Each new innovation leads us further down this path.

What this means is that countries that are quick to embrace what is taking place will be able to get a clear lead over the others. Tokenization is a thing simply because it is unavoidable. The present methods in our global system were constructed when we operated in a physical world. This is no longer the case.

How much of an impact can this be?

Let us take the UAE. At a WEF conference, their tokenization place was discussed.

Minister Al Marri spoke first about how the UAE intends to utilize tokenization to finance its ambitious growth plans. He said the country hopes to double its GDP in the next ten years. To do this, the country would need to grow by 6-7% annually.

Keep in mind that the former President of the United States was pounding his chest when the growth rate of the U.S. economy hit 3%. The UAE believes it can more than double that with tokenization.

This can be done because, quite frankly, the minister gets it.

“In our digital age, tokenization compliments the information-based technology as a decentralized way of capital allocation.”

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This should sound familiar to regular readers of this blog. The transition from physical to digital (and eventually to virtual) requires tokenization. It is the pathway of ownership, thus providing a more diverse allocation of capital.

Tokenization is the funding of new ideas. Certainly, we can take existing assets and fractionalize the ownership. This is fairly evident. However, the real power comes from innovation. Here we see the ability to rapidly tokenize an idea, one that can be a major breakthrough for humanity. This goes against the heavily regulated system that we presently see.

Of course, this is where those countries that take a different approach will gain. The ones that operate with a heavy hand, trying to maintain control like in the past, will end up falling further behind. We already see this with developed countries.

The cryptocurrency market cap is already near the $2 trillion mark. What happens when this number is $20 trillion and much of that capital is looking for a home? Do you think people will gravitate towards those countries which make it difficult to invest said monies? Or will they perhaps drift to those places that are welcoming?

My view is the later will prevail.

Those involved in cryptocurrency already are realizing this. To do a test, simply answer this question: how much has your net worth increased due to cryptocurrency?

Anyone who is in it longer than a year will certainly have seen growth in this area. The system is such that it is impossible not to keep growing one's stake if he or she is active. Not only are there ways to get rewarded in cryptocurrency, those tokens can be put to work through various staking platforms. DeFi is opening up an entirely new realm to people.

Tokenization is about capturing value regardless of what the asset is. It can be a building, cash flow, a video, or data. Then it provides the necessary liquidity for it to be traded, removing the premium that comes with non-liquid assets. In turn, this provides for more accurate analysis generating greater market stability.

In short, fractional ownership creates a more resilient system.

All of this is going to end up changing the world. We are still in the early stages. Nevertheless, we see the foundation be laid upon which a lot of other innovation will take place.

Many use the analogy to the Internet. There is no doubt that technology completely revolutionized humanity. That said, the shift towards tokenization is similar to that move but on steroids.

We will see 100 times the impact as we saw with the Internet.

That is how powerful this is.


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I was just trying to explain all the different tokens and how they worked to my friend Jeff yesterday .. I think what finally stuck is when I compared tokens to stocks.. and then pointed out that almost nobody uses actual cash anymore

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It is still a tough concept for people to grasp. Yet if we look at the forex market, people engage in many different currencies. Look at a company like Apple. How many different currencies are they paid in?

Over time people will grasp what is going on but it will take time.

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The ones that operate with a heavy hand, trying to maintain control like in the past, will end up falling further behind

It is to be expected when they are drunk with power. But I fully expect the corporations and the government to battle out their interests since one side wants control and the other side wants money. Though I guess it might be fine in China where the government controls both. But the rest of the world doesn't have that luxury.

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Well the "leading" economies are going to allow the smaller ones to catch up. This will suddenly put them on par, in the digital realm, with the rest of the world.

The advancement of technology does not only favor individuals who are lagging but entire economies.

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Yea but it doesn't seem like China is going to sit around while the rest of the leading economies wait. So I can only expect everyone will have to fight with others online to maintain their dominance.

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That is true and it moves quickly. The digital world is light years quicker than the physical.

Hence, a country like the UAE can really advance itself rapidly. The same within the US. If some states targeted it like Wyoming is, it could really change things.

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At some point, it becomes to hard to ignore.

I wish that this will be also true for most of the Hive blockchain posts.

What do you mean?

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The fact that nowadays most of the Hive blockchain posts are ignored.
The real, human comments are rare.
Many people blogging, but only a few people commenting.
Most people focus on their own posts.

It's quite funny really, there's alot more at stake with cryptocurrancy then meets the eye.

For all of human kind humans have tried to have one basic economy, one currency and all have failed. Because who's evere currency It's based on controls the global economy.

Bitcoin will become basic tender, bitcoin is based on the US dollar, all cryptos pretty much are. China wants Bitcoin because of it, it's been chasing the US dollar forever.

Once Bitcoin is accepted as a legal tender it means the US dollar is accepted equally across the globe.

The US dollar value of bitcoin won't be worth more or less it will remain exactly the same as the US dollar.

There's the global economic destabilisation everyone was worried about. The US just figured out it benefits them so they're going to go balls deep on it. If China doesn't fuck them.

Russians where? Oh that's right there testing a doomsday bomb in the Antarctic that creates nuclear tsunamis to level coast lines.

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The transition from physical to digital (and eventually to virtual) requires tokenization.

This seems simple on the surface but deep, the transition has been amazing thus far, the amount of money going into NFT is crazy and more and more people are adopting.

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There is a lot of craziness going on with NFTs. It is hard to sift through all that is taking place right now. We are going to see what evolves as the core use case going forward.

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Basically the money that goes into it is insane, this proves people are beginning to understand its potentials. So Many opportunities.

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Either that or there is FOMO taking place.

At the end of the day, some good will come out of it. We just might need to endure some craziness.

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In Poland mosaico (mosaico.ai) has many interesting tokenization projects. One can invest in sun farms, application for dance learning, soccer academy and other projects. Its owner Rahim Blak says he wants to tokenize anything :)

That is terrific to see. I was not aware that all that was taking place.

It is great to see real world applications being tokenized. Hopefully that will keep spreading.

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I feel like this article is just one of those to be re-written and posted over and over again... Because honestly, despite the whole Craze in the space, leading to some huge big boys adopting (speaking of NFTs) most of the realized location still tend to ignore the impact Tokenization is making on the finance system. Well, just like they say, time will tell, and it will surely tell...

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In spite of a lot of the publicity, tokenization as it relates to the financial system is still flying under the radar.

DeFi is getting some attention for the craze there yet there is still innovation taking place.

Over time, I think the spread will catch on, it might be an "overnight" process. It might take years then everyone will wake up one day and be like wow look at what happened.

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Many use the analogy to the Internet. There is no doubt that technology completely revolutionized humanity.

My belief, before reading this in various places, was that the Internet is perhaps the greatest achievement of humanity, with the greatest impact on further development. I lived more than the first half of my life (46 years) in a totalitarian communist society when information from the democratic part of the world reached us only extremely hard. So I know very well what impact the internet would have had on us at that time. I am referring here only to information, music, film, art and interconnection.
The technological, crypto and robotic part I didn't even dream of.
Your almost obsessive topic of tokenization is a kind of SF about to become a reality. It is a projection of what the world will look like in the next two decades. I'm glad for our children.

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My belief, before reading this in various places, was that the Internet is perhaps the greatest achievement of humanity, with the greatest impact on further development.

Electricity was a pretty big accomplishment too.

We are seeing a massive change due to digitization. The overall impact will not be realized for decades. In fact, we still havent seen the true impact of the Internet yet since we are still in the "learning" process of it.

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Of course, I forgot about electricity. In fact, I haven't forgotten, I'm so used to it that I didn't realize how recent it is and the enormous impact on us.

Absolutely... I’m selling NFTs like Hotcakes. It’s crazy

Good for you. Take the money while you can.

If it is there, satisfy the market while they are craving it.

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Crazy what people will pay for these things.

What do you produce? Art? or something else?

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Art, gifs, music, .... everything .... mostly really strange stuff.

This is from my Creatures of the Deep Collectors Series.

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I think that real estate will be one of the first sectors that really starts to embrace blockchain and tokens when they finally shake off the old way of doing things and start embracing it. Land records and stuff like that just seems like a perfect fit for a lot of what we are doing here.

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Real estate makes a lot of sense. Although I can say what is taking place with the NFT market is not completely insane. We need to separate the mania from the legitimate use cases. We are seeing the ownership of digital assets being erected. The problem is the value might be a bit awry at the moment.

We will see how it all pans out.

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Oh yes, I think the value is really messed up right now. Especially on the ETH side of things. All of those whales who did well in the bear market just throwing money around like crazy!

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Some people simply have little sense.

Perhaps they are wise moves but smart money rarely chases.

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I think diversification at the currency level is the need of the hour and that's what so many crypto currency is actually doing. I think eventually we will see that everything has a value and that value is defined by the buyer and seller and not be the currency itself.

That is what markets do. Whatever two people agree upon is the value.

We will see many things tokenized that presently are not monetized, meaning it can be on a market somewhere. This creates a huge amount of wealth.

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Although we have seen a lot of progress in the crypto space it's still not practical to get a cup of coffee with crypto ( at least where I live). The only coins with enough exposure and some level of adoption: bitcoin and ethereum are not practical enough to buy everyday things. I'm curious if you can buy things like coffee or breakfast with stable coins maybe

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We still do not have marketplaces for the most part using crypto. However, do not let that detract from the main premise. Tokenization is changing everything.

You comment is akin to saying that the Internet did not change much in 1995 since there were only a couple hundred million users. While it was true at that point in time, half a decade later, it was a completely story.

The same will happen here.

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I understand what you are trying to say but I was expecting more widespread adoption in the past 3 years or so. Maybe when it will happen it will happen faster than we can imagine

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My view is we did advance rapidly compared to 3 years ago. Recall back then was all FUD and people being scared away.

Plus we saw a lot of infrastructure built in that time. We are still in a non ease of use phase which is holding things back. Most simply are not technical nor interested in being to deal with something so complex.

Until things get easier, we will see things progress slowly as compared to mass adoption.

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yeah ease of use is critically important, but I think hive really has the opportunity to shine in that aspect if we make the right decisions going forward

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NFT I have never seen them as an investment but I think that in the end many have made a lot of money with them right,
If Paris Hilton is involved, it is because I already hear something about it
Well, the real estate markets will be taking advantage of this and that is a very large market, which should be paid attention, now I think that interchain videogames are the ones that will also have a rebound as they have said around here who does not want to carry their weapon from a game to another and have the property of it, that is to monetize the time invested in them, not as has been done until now that each platform has its own tools, and those platforms or consoles that do not adapt to it will tend to disappear that is for sure call nintendo sony or psp
if they don't accept this, they go out of the coming market.
Well, if the United Arab Emirates, which are a power, are seeing 10 years ahead, that is what we should all see that same term or longer term, well that if we are alive jaaaaaaaaaaa
Anyway, how much has my assets grown a few cents but there it goes from penny to penny thanks to this tokenization I hope to soon achieve the much desired financial freedom that is a fact.

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Celebrities will attract attention. That is for sure. I am not sure it is the most healthy approach but it will bring the numbers.

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The tokenization of everything will take the world by storm. But we must be careful in not creating a system that mirrors the existing legacy system. Open and free to “earn” should be the name of the game. Some of these projects are basically doing private equity offerings and calling it tokenization.

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I agree. This is the danger of inviting the Wall Street crowd in. That is why I feel we need to build as much wealth as we can for individuals. The more in people's wallets, the better we can counteract what the money players do.

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Yes the normal is changing and what we are doing will be the new normal. DeFi is not a bubble and is just getting bigger and bigger and don't know how it will end as how far can it go. The UAE are not stupid as they know the time lines on their oil supplies and need to move into other areas like tourism and tokenization.

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I agree that DeFi is along way from a bubble. It is only getting started. We are going to see a lot more innovation in that area over the next couple of years.

Countries have the opportunity to jump on this bandwagon early. One like the United States is going to be slow because of their "success" with the existing financial system.

Other countries will take advantage of this and push ahead.

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I can see banking in certain countries changing very quickly and this will force change .

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With internet we only saw connecting and sharing "information". With tokenization we are transferring and dealing with "ownership" in a scale that wasn't possible a decade ago.

We actually have a tech that can bring death to bureaucracy.

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We actually have a tech that can bring death to bureaucracy.

That is true.

We also might end up seeing the eventual end of the nation-state.

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At least we'd be able to see their relevance go down. It's the power these ation-states have over the lives of individuals and how these institutions work against individual citizens is the problem. If we can at least cut the fangs & teeth....... it'll be a victory for true freedom.

We've already made banking system for foreign money transfers useless. DeFi will take care of much of the banking activities. It's the courts that will be hard (maybe even impossible) to fully automate.

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Yeah the thing about tokenization that i really like is that it is creating liquidity and unlocking cashflow from fixed assets.

That is very true. Of course, the next stage will be to apply liquidity to non asset items such as volunteering, effort, and other things that are not compensated now.

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We will see 100 times the impact as we saw with the Internet.
That is how powerful this is.

I believe this is true. The internet made communication virtual, this will make ownership virtual. Of course the effect will be more pronounced.

I'm bullish ;)

Great article @taskmaster4450, I am finally starting to understand and utilise the power of tokens. You are 100% right about the vast majority of people having no clue what us cryptos type are up.

I have tried to explain the concept of HIVE and the various token projects to my wife numerous times and she just glazes over. That being said, my wife is a photographer and a great cook, so I get to use a lot of her content in my posts, so it is whin-win.

She gets excited about the returns when I tell her about them, but even yesterday she was trying to explain to a friend about what I was up to with my 'blog' and apparently they both got very confused by it all.

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This is a topic that I am passionate about, tokenization can change the course of many things in the world of economics.
In our history as humans we have tried this, as the tribes sought to create their own economic systems.

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Nice job

Tokenization is a certificate of ownership that securely certifies who the current owner is and who the previous owners were. That is a market that will expand a lot in the next 10 years

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