THE NEW ECONOMY
Tokens: the most effective economic instrument
The modern economy is impossible to imagine without its digital components: virtual objects, e-commerce, online stores, digital assets (information, photos, gaming objects), online payments. Tokenization offers new forms to these values and facilitates frictionless, flexible, fast exchange between businesses and their customers.
Tokens are a digital asset or an independent valuable object (as perceived by some community that uses it). Physically, the token exists as an entry in a distributed registry, shared and mutually verified among many nodes. Example asset types include:
• Fungible tokens: support distinctive economies (gaming points; loyalty points; system credits; synthetic CBDCs; utility tokens);
• Non-fungible tokens: each token is unique, represents assets / roles / identity (gaming items; documents; intra-value-chain settlements; identity; digital twins; real world assets; certifications; collectibles; brand-based NFTs; metaverse assets);
• Restricted fungible tokens: for regulated systems (real world asset securities – real estate, precious metals, carbon; certifications);
• Restricted non-fungible tokens: for regulated systems with unique assets (ownership registries; regulatory certifications; fractionalized mortgages).
Tokenization is a process of transferring rights to an asset into the distributed digital registry. An asset (currency / utility, product / service, security) obtains a digital passport that represents a unique digital code, which can be transferred between parties through the internet and have an effect, such as payment, representing time, transferring ownership, bestowing rights, or changing a legal status of an asset.
Read DGT Token Overview: about decentralized tokens
- DGT Garanaska
DGT Garanaska is the tokenization module embedded in the v. Matagami release (2022) that enables versatile white-label tokenization by companies. This can be accomplished either through smart contracts or by modifying the transaction types that the network processes. The latter is a more secure, high-performance way that does not rely on read / write functions of external code (i.e., smart contracts).
• Any value: programmable transactions allow for tokenization of any digital or real-world asset;
• Atomic swap: internal zero-fee exchange mechanism;
• Mirroring: anchoring and state reflection possibilities in other blockchains;
• White-label tools: : including mobile wallet apps, APIs, dashboards, identity modules;
• Security: against attack vectors for centralized and decentralized systems;
• Volatility-free: independent value from core native coin;
• Verification: notary nodes can verify real-world assets and validate that information on-chain; adding an extra layer of validation;
• Conversion gateways: build-in gateways for exchanging tokens for fiat money and cryptocurrencies.
- Sample use cases: non-fungible tokens (NFTs); commodity tokens
Asset-backed tokens represent ownership in an underlying digital or physical assets. Tokenizing a virtual good or a commodity can help form the backbone of a decentralized economy, raise funds, distribute and granulate ownership, and provide products or services.
NFTs could be used to represent practically any type of object, including: artwork, virtual game objects, music, collection items, real estate, cars, designer shoes, virtual rea estate, photos and videos of cult sport moments, etc. We help develop the three necessary components to working with NFTs: blockchain network, a wallet, and a marketplace (store).
DGT Network also helps construct commodity tokens. Some advantages of commodity tokenization include:
• Derivatives trading and tokenization can enable huge efficiency gains for trading in any asset class, whether that is a commodity derivative or an interest rate swap;
• Cutting post-trade processing costs can bring savings of up to 40% across operations, accounting, settlements and IT through elimination of inefficiencies;
• Wholesale peer-to-peer trading can enable large-scale trading when done with commodity tokens;
• Ease of regulatory validation through automatic rule-based network ready for global marketplaces.
DGT’s unparalleled tokenization opportunities can help commodity holders create (and sell) new financial instruments and digital value through flexible, economy-grounded, investor-focused tokens.
DGT is the only decentralized network possessing Notary Nodes – which help verify the underlying physical asset and add an extra level of confidence and security. Moreover, DGT can bring that token to marketplaces and help create an ecosystem.
With DGT, the commodity market becomes highly accessible to enterprises, accredited investors, and other value-adding participants.
Read more: DGT Commodities
- Tokenization: the future
Analysts predict that tokenization market will be worth 4.8 billion USD by 2025, growing with 19.5% CAGR (2020-2025) [Markets & Markets]. New solutions are constantly being developed: tokenization API helps customers reduce risk of storing data, large organizations use tokens to process high-risk transactions, and tokenization forms the backbone of exchanging value within Web3 economies.