The most prolific development in computer science since the invention of the internet- the blockchain- has allowed for real world tokenisation of assets. Similar to the evolution from physical money to writs of credit, this incredible utility of digital ledger technology is set to see existing assets bought, traded and sold as tokens, in an increasingly globalised economy. So just what assets are being tokenised, and how is this going to revolutionise our daily lives?
The Utility of the Blockchain
The technical and fundamental properties of the Blockchain, or distributed ledger technology (DLT) as it is often called, can be broken down into the following properties:
- Cryptographically protected transactions, and transfers of value.
- peer-to-peer transfer of said value.
- The creation and execution of smart contracts, removing third party necessities or interference.
- Creates a transparent, traceable and verifiable record of ownership.
- Immutable in nature, with no single point of attack.
- Allows you to set management principles for the asset, and integrate them into the assets themselves.
This last point is made particularly relevant when creating tokens backed by assets (asset tokenisation), as the rules and restrictions on the token can be coded into the asset, dictating terms, contract stipulations, real world rights etc…
Asset Tokenisation: the process of digitising an asset by appending a digital representation of it to an immutable ledger — Kyle Forkey
So Why Are Assets Being Tokenised?
Tokenising assets allows us to transfer value without moving a physical asset, and removes fraud from the equation. It also allows us to:
- Remove arbitration/3rd party interference, fees, and purchasing restrictions.
- Reduce and remove barriers to international trade.
- Create a trustless system to trade and purchase assets cross-border.
- Reduce barriers to entry for trading and investing, as it can reduce the minimum payment required to participate.
- Create liquidity in markets that are traditionally rigid/surrounded by bureaucracy e.g. real estate.
- Asset tokenisation effectively reduces entry barriers for trading and investing, by lowering the minimum requirements to participate.
What Types of Assets are Being Tokenised?
There really is no limit on which assets can be digitised. However, the early examples are in typically illiquid markets. For example, by tokenising real estate, it would be possible to own 1/10th of a property. Or, let’s say you decide to sell 25% of your property. You could split this into 5 tokens and charge a premium for the convenience of owning a fraction of your property. Then you can use the additional income to purchase fractions of other properties, diversifying your portfolio, reducing your risk, and rewarding you with a % of the income they produce. Check out this article posted on Coindesk for a real-world example.
The tokenisation of assets has the potential to revolutionise the global economy, and allow for an entirely new economic system.
Thanks to the number of illiquid markets, there are plenty of high profile assets that are already prime candidates. It encompasses both tangible and non-tangible assets, as well as fungible and non-fungible items:
- Oil and gold
- Rare art, cars, and collectibles
- Real Estate
- Financial assets
- Intellectual property and patents
- Even the US dollar
ECOMI Collect Digitises the Collectable Market
The true value in ECOMI Collect is in its ability to digitise a traditionally illiquid market (collectibles), whilst simultaneously providing a new platform for owners of IP/intangible assets access to a new market for their products. The platform is targeting the premium end of the collectibles market (USD $200 billion), to produce licensed digital content on a simple to use smartphone app.
Thanks to the blockchain, these assets are distributed as non-fungible tokens. This means digital collectibles can be identified as unique, limited editions, rare or otherwise, linked to physical products, and hold their own inherent value that can be transferred peer-to-peer. It also allows for verifiable and traceable ownership of the token, returning property rights to the digital world, and ultimate security of your assets thanks to integration with the ECOMI Secure Wallet.
Covering 5 main categories, ECOMI is integrating augmented reality (AR) technology with their collectible offering, so you can interact with your collectibles and use them in gaming scenarios.
ECOMI is a technology company based in Singapore and is leading the way in the emerging digital collectibles space. ECOMI offers a one-stop-shop for digital collectibles through the ECOMI Collect app bringing pop culture and entertainment into the 21st century.
The Collect app allows users to experience true ownership of premium digital collectibles. Through the app marketplace, users can obtain common, rare, or one-of-a-kind digital collectibles, share these across the social network service, and exchange them with the Collect community, all from the palm of their hand.
ECOMI sees digital collectibles as a new asset class which offers intellectual property owners the opportunity for new revenue streams in the digital landscape. Digital streaming, gaming, and in-app purchasing have become a multibillion-dollar market and the next to join this digital trend is the pop culture and collectibles industry.