Tokenization of online services: a trend of 2020?

The world goes digital! There is no doubt that the digital transformation of business is continuously spreading around the globe. Coronavirus pulled the digitalization trigger. Just realize that soon more than 90% of goods & services sales and social communications would be conducted online. In this case, we already deal with the globalization of innovative business models. This trend affected a lot of businesses, including some telecom operators, loyalty programs of well-established brands, gift cards of the world-class retail companies (for example, Amazon or Alibaba), and many others. The world rapidly changes and we believe that it results in raising attention to certain services and values from the global communities, which in time will become some sort of universal value.

Blockchain as an instrument for the tokenization of goods and services of global business. Prospects and limitations

Any universal values, first of all, are used for the intended purpose and trading. A good example of universal value is cryptocurrencies. Today, in almost every country there are crypto communities that use cryptocurrencies for payments and trading them between each other and fiat money as well. However, even the blockchain industry is alive for 11 years already, the user cases of crypto are still limited to the transfer of the digital assets (such as cryptocurrencies, stablecoins, and tokens), decentralized finance services (Defi), blockchain games and gambling dApps. At the same time, the values tied to goods and services of global businesses could become one more solid and widespread use case for crypto as the benefits of storing, transferring and trading tokenized values are obvious.

But, why are these ideas still not implemented? It is worth noting that certain attempts have already been made. For instance, a Telcoin project attempted tokenization of mobile web traffic packages with an aim to allow transfer between the mobile subscribers from different countries. The other cases that can be mentioned are decentralized VPN companies dedicated to tokenization and sharing of the Internet channel, cloud services and so on. However, all these services (if we are not discussing the obvious scams) faced the same problem — lack of community. The only successful case is a Brave browser that successfully tokenized such fundamental value as human attention. It should be noted that the success of this project was predetermined initially. The founders were developers of the world-famous browser Firefox. Simply saying, the large and loyal community of the well-known browser is the main reason for success from our point of view.

Tokenization of services is a business model of the future?

We consider the current trends are only in the very beginning! Many businesses with global communities will get additional value from the tokenization of services. Developing Bizonex, we are aimed at executing a business model that implies the establishment of liquid markets for tokenized services, as well as (in some cases) conducting the tokenization itself.

“Tokenization of values, tied to services and goods of the real economy is a rather complex task than issuing ERC20 tokens or creating a thread on Bitcointalk or Facebook.”

First of all, the tokenization process requires the financial and legal scheme which will be compliant with the current international legislation. The next necessary step is the integration of digital asset in applications (desktop, tablet, and mobile ones), agreements, user experience and (what is also very important) into the value creation chain of the businesses.

Bizonex is an international platform for trading tokenized assets

Bizonex is the platform that allows the exchange of popular cryptocurrencies and tokens as well as tokenized assets tied to services of global businesses (such as tokenized loyalty programs).

We are planning to establish the markets for tokenized assets tied to goods and services of business that will appear in the foreseeable future, for example:

• Tokenized loyalty programs of global retail networks
• Tokenized miles of airlines and bonus points of other carriers
• Tokenized coupons of global IT corporations (such as Amazon Cards)
• Tokenized communication services (for example, tokens of minutes & gigabytes issued by global telecom operators)
• Tokenized values of online games such as collectibles and unique items

Besides the business areas mentioned above, we consider the integration of any others which have an active community, effective demand and are legally compliant. Also, Bizonex will allow the exchange of popular cryptocurrencies and tokens of emerging decentralized applications (dApps) such as MKR, DAI, BAT, REP, and many more.

Main classes of assets, which will be available on Bizonex and first partners are presented below:

The exchange will be launched in April. Our roadmap contains sequential launch of the following services:

• Spot trading
• Margin trading
• Futures trading
• Integration programs with real-world applications, which use digital assets in their business models (such as tokenized loyalty programs). As a result, it will enable instant buy/sell service for the digital assets of third-party applications
• The platform for IEOs (Initial exchange offerings)
• Staking portal that allows Bizonex customers to get passive income from participating in Proof-of-Stake consensus (PoS)

Also, we are proud to introduce our own R&D department — Bizonex Labs. It is responsible for the development and production of special equipment, for example, secure hardware crypto wallets that will be available for the Bizonex customers. The Bizonex crypto wallet offers secure cold storage, 2FA authentication at the exchange, confirmation of transactions and funds withdrawal from a physical device. According to our tests, it will significantly increase the level of protection against hacks and any other fraudulent activities for the end-customer.

Our first business partners in terms of tokenization are a global eSim telecom operator Easy4 and popular energy drink Bizon.

The case of tokenization for Easy4 — a global eSim operator

In collaboration with Easy4, we plan to tokenize the world-accepted telecom services (minutes & gigabytes). Every user will have the opportunity to spend tokenized minutes and gigabytes in any of 170 supported countries by using eSim in the smartphone after installing a special mobile app. Currently, we are developing the legislation base for the project and integrating Bizonex token into a mobile app. Thus, Bizonex customers will be able to buy international communication services in a single click by using cryptocurrencies, while Easy4 clients will be free to trade their minutes and gigabytes.

Also, it should be noted that today the mobile traffic demand skyrocketed due to the quarantine regime introduced in the vast majority of developed countries. We suppose this trend will keep rising even after the world defeats the coronavirus pandemic.

Hence, we expect a “wave of tokenization” of goods, services and global values in 2020.

Stay tuned for updates! Maybe you will use the tokenized megabyte first in the world!

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