Asset Tokenization. We’ve heard these words circulate in the cryptocurrency circle for a while now, but what do they actually mean? Why are investors bedazzled by its stunning debut into the spotlight last year? This article presents a comprehensive guide on the ins and outs of asset tokenization and offers you a solution to some of its tackiest problems.
What is Asset Tokenization?
Simply put, asset tokenization refers to the process of issuing digital tokens as representatives for a real tradable asset in the virtual world. Powered by the Distributed Ledger Technology (DLT), or otherwise known as blockchain technology, ownership of these assets can be fractionalised through the blockchain, presenting a gentler curve for novice investors looking to further their portfolios interest.
Let’s take a look at the picture below:
Assuming the digitalised asset is the pizza above, fractionalised ownership allows every investor to enjoy a slice of pizza without emptying their pockets just to risk overconsumption in the process. Translated into the language of investors, it means lowered risks and barriers to entry for common investors looking to make a quick buck.
Putting traditional assets on the blockchain also has the additional benefit of expanding its scope beyond its current market. For instance, it has now become possible to share ownership of various types of assets. These assets include real estates and properties, objects like artworks, cars and minerals, intangible assets such as energy or electricity and precious metals like gold and silver.
So, What’s The Issue Here?
With burgeoning interest in asset tokenization, it is unsurprising that a substantial number of firms have started developing platforms for asset tokenization. Yet, despite the sheer volume of platforms available, a certain type of asset has remained largely absent. Yes, we’re talking about raw material assets.
Asset tokenization platforms that specialise in tokenizing raw materials assets are few and far between; assets like real estates and artworks are preferred over material assets to platinum or silver (with the exception of gold). This bias is due to the fluctuation in value of raw material assets and its volatility and illiquidity. Hence, there is a need for an asset tokenization platform specialising in the tokenization of raw material assets — a need that has since been fulfilled by The Konrad Platform.
What is Konrad And How Will It Help?
The Konrad Platform offers an alternative investment option for raw materials assets by providing an asset tokenization platform based on blockchain technology. It creates tight-knit relationships among investors, raw materials suppliers (e.g. mining industries) and material processing industries (e.g. refineries) to facilitate trade among the various parties.
The services that Konrad Platform provide can be summarised into the following:
(a) Asset Valuation
Konrad provides asset evaluation service to projects that list their assets on the tokenization platform. Experts from various fields will constitute nodes in a decentralised assessment platform and will converge on whether the price provided based on the asset value evaluation report is reasonable.
(b) Asset Tokenization
Projects have the option to list their products as an asset on Konrad Platform. For instance, a mining project can list its ores on the Konrad Platform. Every token will then be representative of a stipulated unit of ores mined from stopes owned by the mining projects.
(c) Trading
Konrad’s trading platform is multi-layered to serve the various needs of our clients. Illustrating it with the same analogy of a mining company stated earlier, trade can be differentiated into four steps:
- Individual investors can choose to invest in ore-backed tokens through the Konrad Platform.
- Corporate investors such as ore-refining companies can initiate trade with individual investors for the investors’ ore-backed tokens with fiat currencies or other renowned cryptocurrencies.
- These ore-refining companies can claim their ores from the mining companies using the ore-backed tokens.
- The returned ore-backed tokens are burnt by its initial issuer: the mining companies.
Conclusion?
Asset Tokenization is a mouthful of words, but with the Konrad Platform, its concept has never been easier to digest. Konrad’s asset valuation and tokenization platform, alongside its multi-layer trading system are innovative methods to resolve the current ills plaguing the tokenization of raw materials assets.
Tapping into a relatively untouched market, Konrad is a one-of-its-kind platform that provides a unique and enticing gateway into the lucrative market of asset tokenization that no investor should miss.
To find out more about Konrad, check out its socials at:
Bitcointalk: https://bitcointalk.org/index.php?topic=5148889.0
Facebook: https://www.facebook.com/KonradPlatform/
Reddit: https://www.reddit.com/r/Konrad_Holdings
Telegram: https://t.me/konrad_En
Twitter: https://twitter.com/KonradHolding
Website: https://www.konrad.holdings/
Weibo: https://www.weibo.com/7041318945/profile?topnav=1&wvr=6&is_all=1
