Ownership was a previously defined concept prior to the emergence of blockchain technology. Assets were tangible and provable by documentation or by having possession of the asset. It was a straight line from purchase to ownership with the paperwork to prove it. The introduction of blockchain has seen the emergence of a whole new concept with digital assets and tokenization of assets. These assets are far more complex and far more liquid than in the legacy system. We will explore how blockchain makes it possible to tokenize, store and transfer assets as a whole or in fragments.

Blockchain works alongside other recent technological developments such as cloud computing and smart contracts to provide a platform capable of tokenizing and storing vast amount of information safely and securely. These core concepts will be discussed throughout this paper as a study of what is needed to tokenize assets on the blockchain and evaluate the possibilities for future development. We will look at some real world examples of this theory in practice covering areas such as contracts, real estate and digital products. This research paper will take information from multiple recognized sources to evaluate and discuss this topic from both a positive and negative viewpoint..

As we move deeper into the digital revolution we are seeing the emergence of blockchain technology as a key part of this new and emerging infrastructure. Blockchain technology has the capability to disrupt traditional infrastructures across multiple sectors. One area that it is already having a huge effect on is the concept of digital assets and digital ownership.

“Blockchain has been referred to as a new technology that will change the entire business ecosystem as a technological enabler of innovation.” What we will be looking at in this regard is the tokenization of existing assets and the use of blockchain to store and trade these tokens as well as creating digital assets that can also be stored and traded using smart contracts tied to the blockchain.

There are already multiple new industries being built on the concept of fungible and non-fungible tokens such as contracts, art, gaming, real estate, and the tokenization of assets which will lead to even more use cases going forward. This concept is gaining traction as blockchain provides the base for a safe, secure and transparent exchange between parties while having immutable proof of the asset and its information. “This is because all the information recorded on the blockchain can be considered as digital assets and these assets with guarantees of authenticity in the blockchain are tamper-proof and cannot be changed”

We will look at information on the tokenization process, the classification of digital assets, ownership and contracts to see how it can be applied to real use case. This will examine the entire concept of ownership as it stands today in contrast to digital ownership that is now made possible through blockchain technology.

A benefit of smart contracts on the blockchain is their immutability and transparency. Ownership is one part of the solution but to make any transactions legal they will need to adhere to existing law.

Any contract can be stored on the blockchain so that all of the details are there to be seen by involved parties. This ensures that the details cannot be edited. That all the details of sale can be verified and tracked. “Once validated, transactions in the blockchain become irreversible, verifiable, permanent, and secure."

The possibilities for tokenization are practically endless moving into the future. If it exists, it can be tokenized. If it can be tokenized, it can be owned.

Real world Use case

We have seen examples where tokenization is being used in a variety of industries but this will expand even more going forward. Two that stand out are “Smart cities”, and the “Metaverse”.

The world is changing at an exponential rate, driven by advancing technology. "Smart cities are moving from a theoretical project towards a real life prospect.” Soon most cities will pride themselves on being smart cities.

In this case of smart cities you will be able to access everything through a secure blockchain verified ID. This could include ownership of,

• Healthcare plan.
• House
• Voting rights
• Financial assets
• Assets like electricity that can be sold back into the grid.
• Shopping

Blockchain can be used across any area where data needs to be stored. In this digital age, everything can become data.

Likewise, the metaverse is a plan for a digital world where all activities can be undertaken online. Blockchain will be a vital cog in this development for accessing the metaverse securely and controlling your assets for participating in any of those activities. The Metaverse has been described as, “the digital transformation in every aspect of our physical lives. At the core of the metaverse stands the vision of an immersive Internet as a gigantic, unified, persistent, and shared realm.”

There are eight technologies which enable this future. These include blockchain, cloud computing and extended reality. While on the users side they envisage the most vital factors to be,

• Avatar,
• Content Creation,
• Virtual Economy,
• Social Acceptability,
• Security and Privacy,
• Trust and Accountability

All of which are tied to the blockchain, digital ownership and the internet of things. Or as we predict, the future and a new concept of ownership. These will be tied into the tokenization of everything and stored on a blockchain for verification.

Posted Using LeoFinance ^Beta