A Closer Look to Asset Tokenization: Aladin Tokens Gaining Momentum with Increasing Memberships

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AladiEx

4 min readJul 28, 2020

Physical tokens are widely used as a substitute for real money. One best example is the use of casino chips. Also, banknotes and coins are hugely accepted worldwide. These general tokens indicate the legal right of ownership of a currency.

With the release of tokens in the digital world, this has been touted as a replacement of sensitive information with non-sensitive digital data. In 2001, TrustCommerce first launched digital tokenization. Its main thrust is to safeguard credit card personal details. In the past, merchants kept their credit card data on their servers. However, individuals with system access could potentially view sensitive data.

As part of TrustCommerce’s system upgrade, it developed an infrastructure to modify the primary account number (PAN) through a randomized number known as a token. When a buyer requires payment processing, he should refer to the token, and TrustCommerce is in-charge to process the payment on the merchant’s behalf.

Using the new system, this gets rid of the hassle for merchants to keep the credit card details by themselves, and thus, it ensures the cardholder’s data security. Tokenization is recognized as non-reversible. Hackers cannot get the payment details as account numbers are encrypted in the token.

Intensifying Tokenization via Blockchain Integration

Although tokenization is a highly reliable tool in the personal card industry (PCI) data security, this becomes more powerful when integrated with advanced blockchain technology. Issuing a token via a blockchain, the technology keeps a record of the issuance and documents a ledger of every token transaction made.

One vital blockchain feature with the creation of tokens is addressing the ‘double-spend’ issue. Before the emergence of blockchain, any digital asset like an image or document can be duplicated infinitely by anyone who has access to it. This is like an email trail with an attachment. Anyone, who is part of the email trail, has a copy of the attachment.

No More Double-spend Issue

When Bitcoin came, this issue was tackled by employing a distributed ledger to ensure a permanent, immutable recording of crypto transactions. Every Bitcoin is a token. Whenever a Bitcoin transaction is completed, the ledger is updated and shows all transactions held. However, spending Bitcoin twice is not allowed.

Responding to the double-spend challenge, this highlights that using blockchain, where digital tokens cannot be copied or duplicated.

Tokenizing Assets

Bitcoin and other digital currencies promote the exchange and trading of digital tokens as assets. A cryptocurrency is used as a storage of value or as a payment mode. The digital token of a cryptocurrency is considered an asset.

In the digital age, asset tokenization of real assets is the next ‘big thing.’ When tokenizing an asset, you issue a digital token via a blockchain. The crypto-token serves as a representation of either a tangible or intangible asset. With this, the asset’s economic value is the same as the token. Asset ownership lies with the token ownership on the blockchain.

Virtually, there are no limitations when tokenizing assets. Through asset tokenization on the blockchain, this provides compelling and far-reaching implications in various industries. Trading digital assets are made possible. This represents valuable financial tools like goods, futures, or stocks. Supply chains employ digital tokens in managing the movement of products and services.

Blockchain Adoption: Driving Force of Future Investments

As the blockchain technology exponentially advances, this shows a significant impact on the capital market infrastructure. One of the emerging digital blockchains in the industry is AladiEx.

The AladiEx platform helps entrepreneurs in realizing their dream businesses. It endeavors to assist a million MSMEs to achieve their funding needs over the next five years using Aladin tokens. The AladiEx ecosystem leverages in raising funds for global firms in the most securely and transparently way.

Advantages of Asset Tokenization

There are many reasons that asset tokenization is gaining popularity. The digital tokens are designed to raise sufficient funds for any project. Aside from establishing new avenues for investment, digital tokens like Aladin tokens develop new liquidity in industries for real-world assets, which are previously too difficult to attain.

Transacting using Aladin tokens is faster and cheaper and does not require an intermediary like a broker. This makes the tokenization of financial instruments to gain momentum in the finance sector.

Asset tokenization promotes transparency and security. Ownership is fully documented on the blockchain where an asset is stored. Also, ownership rights are embedded into the token, along with the smart contracts that are instantly executed.

With the launching of Aladin tokens, this enables you and your business to gain a profitable investment in the crypto market instead of simply being a passive investor. AladiEx provides a positive vision and great opportunities toward profitable investment right at your fingertips! Learn more about us by visiting our website at https://aladiex.io/. Trade with us at https://aladiex.com/