What’s in it for a Normal Company?

Аlех Оsh
Aug 13, 2018 · 6 min read

  1. With equity dilution: tokenisation of equity.

A. Path to crypto without equity dilution: tokenisation of business operations.

Tokenisation of business operations is the process of replacing traditional meeting-point interactions with tokenised ones. For example, instead of transferring funds to your business partner through the banking system, you two simply exchange payment tokens without involving any third party. Like cash, but electronically, remotely, with an ability to create an audible legal record. Or, another example: instead of passing the set of accompanying documents for the cargo (which includes creating an online record in a cloud-hosted database), you simply pass tokens from one wallet to another. This is similar to paper in the pre-Internet age but with much stronger authenticity protection and all the conveniences ordinary online records offer. Again, that happens without any third-party cloud service provider.

Avoiding third parties is not paranoia or other sort of mental fixation. It really is a way to reduce the influence of monopolies.

This anti-monopoly talk may sound irrelevant, but look attentively to your particular industry and you will surely see some company or some government agency whose influence can be felt almost everywhere. If hotel operations would be tokenised by the time Booking.com and other OTAs were rising, the commissions spread would be different. Tokenised businesses are much less likely to allow data silos. Should some end-user oriented booking service gain much traction, hotels would be the first to massively co-own it. 15%-20% commission wouldn’t have become the norm.

B. Path to crypto with equity dilution: tokenisation of equity.

Tokenisation of equity is the process of pairing a share of stock with an authentic crypto token. Crypto tokens, in their simplest form, are immutable transaction records that achieve immutability through being kept on a fairly decentralised platform. The perceived strength of tokens is in ease of issuance and ease of organisation of circulation.

Appendix. Three Existing Strata of Crypto

Programmable Economics

Journal by https://www.ple.services

Аlех Оsh

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Programmable Economics

Journal by https://www.ple.services