In today’s world where the blockchain technology experiences accelerated development, efforts have been devoted to incorporating blockchain technology in each and every sector to ride the tide of blockchain development and seek more opportunities. So far, the closest thing to seamless integration of blockchain technology is its applications in the traditional financial sector. The characteristics of blockchain technology, such as decentralization, is able to introduce brand new investment alternatives, i.e. digital assets, to the traditional investment market.
Konrad is an asset valuation and tokenization platform based on blockchain technology that provides users with a full range of one-stop services including asset valuation, asset compliance, asset mapping and digital asset trading. The Konrad platform deals mainly with raw material asset tokenization, particularly precious metals such as gold and silver, by mapping them onto the blockchain network. One may ask, what happens to raw material assets before tokenization? We will take you through the journey of asset tokenization in this article.
Stage One: Mining
Mining is an arduous, resource-intensive industry. The mining cycle can be roughly divided into four phases, namely, prospecting and exploration, development, extraction, and closure and reclamation. The entire mining cycle may span over a couple of decades. After site prospecting and exploration, the project team will proceed to construct mining facilities and infrastructure in the vicinity and make sure that it complies to industrial standards. After the construction of mining facilities, the mining project can then move on to the next phase.
Stage Two: Asset Valuation
The ore samples mined from the site will be sent to various laboratories for content analysis and valuation. Bulk samples of each mining cycle will be taken from the 7% Gravity Concentration and tested using the Digestion Sequence (HCI-Wash to remove base metals followed by AR Digestion to dissolve all metals). Using prevailing Engelhard Industrial Bullion (EIB) pricing, the Total Composite Valuation (TCV) of Concentrate Recoverable Metal is determined by the average raw counts of soluble metals digested of each sample. In this way, the valuation of head ore in each mining period can be easily determined. Subsequently, Konrad will publish relevant test results and valuation report on the blockchain network. In addition, Konrad incorporates a third-party auditing team to ensure that lab valuation accurately reflects the actual value of these materials. In the meantime, Konrad is also mindful of the disparate regulatory policies in various countries with regards to natural resources. In response to that, Konrad creates a decentralized, autonomous legal and tax community which offers professional complementary asset valuation and audit services that transcend geographical boundaries.
Step Three: Asset Registration and Tokenization
Based on content analysis and yield report, raw materials will be registered and subsequently issued on the Konrad platform. Leveraging on asset mapping mechanism, tangible real-life assets will be mapped onto the blockchain network, and the hash value generated will be stored on the token minting blocks. The hash of asset registration is encrypted with content analysis report, yield report and the time stamp. Leveraging on the immutability of blockchain technology, users can use unique hash values to access the corresponding valuation reports, which guarantees the accuracy and authenticity of the asset and its registration information.
Step Four: Asset Transaction and Exchange
After raw material assets are registered and issued on the Konrad platform, an asset token will be minted which can be fractionalized, transferred, exchanged and appreciated, on chain, with potential to create more sophisticated derivation in the secondary market. As a result, physical assets with relatively low liquidity, usually due to temporal or spatial constraints, will be opened up to a broader base of audience. Consequently, the liquidity of the asset will also increase, which means that more casual investors would be able to share the ownership of the asset with much lowered barriers to entry.
Ore-backed utility tokens will be exchanged and circulated on the Konrad platform. The transaction rules will be predetermined by intermediary nodes, while the sellers will choose to pay via nodes by filling in necessary transaction information and signed off with a private key. The nodes will conduct a final verification before proceeding with the transaction. After verification and confirmation, the transaction will then be broadcasted to the entire blockchain network.
Step Five: Redemption and Value Release
Users can exchange raw materials from mining projects with ore-backed tokens on the Konrad platform. After the exchange, tokens involved will be returned and burnt by the issuer to release their value. In an actual mining cycle, token holders should exchange ores with tokens within a certain time frame. The use of ore-backed tokens as a payment instrument on the Konrad platform is also encouraged.
From mining to tokenization, and eventually to transaction and circulation, a piece of ore goes through these five simple steps. On the Konrad platform, raw material tokenization is no longer a hassle. If you are keen on digital asset investment, Konrad is without a doubt, one of the better alternatives. The future of blockchain lies in digitized assets. The future is already here, so what are you waiting for?
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/
Medium: https://medium.com/@konradholdings/
Reddit: https://www.reddit.com/r/Konrad_Official/
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
