As with any groundbreaking innovation, looking ahead to the future of an impactful technology can be both exhilarating and a bit overwhelming, and tokenization is certainly no different. Yet, fortunately for everyone, the future of tokenization is one filled with more benefits to the business world and economy than most would have ever imagined. Here are just a couple of the benefits the technology will facilitate.
Making the Intangibles Tangible
Since we, as people, first began interacting with one another, we have always been exchanging goods and services in return for something of equal value. Currency has always been the standard method of tacking on a specific value to these goods and services we provide.
While currency as we know it has inarguably worked well for a very long time, one of the its biggest caveats is it can only apply value to a physical good or service; something you can touch or download. Yet, today in the digital world we live in, we should have the ability to buy and sell intangible goods as well, and tokenization is the technology that makes it all possible. With it, the value of intangible goods can finally materialize.
When it comes to tokenization, as long as both recipients who forge a smart contract believe the exchange is mutually beneficial, then the value of any good or service exists. This means truly anything can be monetized now through smart contracts: the rights to a piece of land, your time and attention as a specialist in a given field, a digital asset, or something else entirely.
“Tokenization, is the bridge that makes the intangibles tangible.”
One of the best illustrations of this idea is the wildly popular game on the Ethereum blockchain: CryptoKitties. In the game, individuals buy, sell and breed virtual cats with other users. The value of the cats is determined by the market within the game and no other entity, and some have been sold for outlandish price tags. For instance, the “genesis” kitten, (the first CryptoKitty created), was sold back in 2017 for approximately 247 ETH, equating to over $113,000.
While selling virtual kittens may seem insignificant and silly, the game is indicative of the potential that tokenization has to reshape the economy as we know it. Entire ecosystems of commerce, completely virtual, will now have the opportunity to bloom as a result of the technology.
Greater Accessibility to Entrepreneurship Than Ever Before
Looking ahead, another outcome of tokenization is increasing the accessibility into entrepreneurship for people from all walks of life. The primary reason for this is based on the sheer volume of opportunities that will become available to entrepreneurs around the world that would have previously been unavailable.
For example, continuing with case of CryptoKitties, in the physical world, if you want to the make money breeding cats you would need a number of items. These items could include adequate space for them to live in, cat food, toys and other amenities to ensure the cats are healthy. With CryptoKitties, people who may not have access to those kinds of resources, whether as a result of living in a developing country, living in a small apartment or something else entirely, can still make money breeding cats. This opens up the door for exponential innovation and limitless invention to take place across the world.The rise of the monetization of intangible goods will open up opportunities for people around the globe, regardless of the country they live in or the family they come from.