Tokenization of Assets in 2019

The biggest change and innovation expected in the blockchain industry in 2019 is the tokenization of assets. ‘Tokenization’ means converting digital, in-kind assets, or fiat currencies into tokens that can be traded on the network. Blockchain's distributed ledger technology is used here.

All in-kind assets - works of art, jewelry, real estate - can be tokenized using blockchain technology. These tokenized assets will exist as encrypted hash assets on a fully open P2P network.

By tokenizing these digital and in-kind assets, companies can completely change the trading process and create new business models. This is a whole new business area.

Unfortunately, contrary to expectations, blockchain has not had a major impact on industry or business processes yet. Many experts acknowledge the potential of blockchain technology, but no one can be sure that a solid business model will be created.

The first thing people noticed in such a situation was the creation of a new ownership and service model through tokenization. This is an attempt to digitize assets.

As a best example, the application of blockchain technology to tokenize real estate is on the rise. Real estate investors and buyers can buy and sell spot assets on the blockchain and repay rent or loans. This will allow property owners to make additional investments.

These tokenized real estate are represented as cryptocurrencies (tokens) on the blockchain and can be treated as new financial assets.