Tokenization 2.0: combining assets and data into a "chain"
23.11.2021 • Просмотров:

Tokenization 2.0: combining assets and data into a “chain”

By Decimal

The crypto space is at a new stage of its development. According to Coinmarketrate.com, the capitalization of the sector is at $2.58 trillion, after a pullback from $3 trillion.

This year, the popularity of NFT has grown significantly. Tokens create incentive systems – with or without means of payment.

Remember how in mid-July Binance destroyed $400 million worth of BNB tokens during the 16th quarterly Burn event. But the market doesn’t seem to care about the problems of the crypto exchange.

For Binance, as for other crypto exchanges, there have been changes in the general regulatory weather situation for several months. At the same time, Binance stopped selling digital exchange tokens to prevent an investigation by the Hong Kong Financial Commission.

Over the past few months, concerns about the lack of consumer and investor protection in DeFi startups have led to the emergence of bureaucracy in various countries. Binance, one of the largest platforms in the world, was the main target. Management cooled down and abandoned the experiment with stock tokens.

The “tokenization” of assets is still in full swing. Meanwhile, not only assets, but also data are transferred to the blockchain. An example is NBA Tops Shots. NBA Tops Shots are NBA crypto collectibles in the Dapper Labs Flow blockchain.

The NBA (National Basketball Association) has teamed up with the Canadian company Dapper Labs, the publisher of the crypto game CryptoKitties, to create its own version of the digital collectible. A digital crypto-collectible item in the form of a non-interchangeable token (NFT) with videos from NFL players was created under the NBA Top Shot trademark.

A schematic representation of how the flow blockchain works.

Each collectible is accessible via a cryptographic certificate of authenticity and is linked to the Dapper flow blockchain. So even if someone needs to make an exact copy of the main video, it can be recognized as a fake.

Sports fans have spent over $230 million on these NFTs, mostly on the secondary market: Dapper receives a commission from each of these P2P transactions.

New solution

During a crisis like the COVID pandemic, not to mention natural disasters, companies have a special responsibility to make forward-thinking decisions based on data.

The measured values of the IoT sensor system and other digital transformation data conceal unprecedented potential for greater efficiency, greater sustainability and less waste.

However, with the introduction of GDPR (General Regulation for the Protection of Personal Data), a gap has opened up for companies between the volume of data generated as a result of digitization and the requirements of the data economy.

Data is a new profitability solution. But when the “new solution” is tied to the original place, progress screams about it at every corner.

Data protection guidelines and relevant legislation have so far actively prevented companies from exchanging measured values from IoT electronics and other data. New technical solutions are needed to bridge the gap between the actual and target state, and at the same time ensure compliance with regulatory requirements to preserve data sovereignty.

“If you can collect all the relevant data, analyze it quickly, extract useful information from it and transfer it to operating systems, then you will be able to influence events while they are not yet completed,” says Paul Maritz, CEO of Pivotal Software. In his opinion, the ability to meet people or objects “in the middle of an action” in order to influence the final result can be “extremely important”.

Crypto tokens are the secret weapon of the blockchain ecosystem, and they can create a technological basis for real-time data exchange.

In the context of blockchain, a token is a crypto brand, that is, a cryptographic entity that represents certain authorizations in the ecosystem of the blockchain application in question. The token is created by executing a smart contract.

Saving data on the blockchain

With the growing spread of blockchain, account management, tokenization of asset classes from the real economy is gaining speed. The list of proven application scenarios is getting longer.

Tokens can transfer assets, create economic incentives to participate in the network and serve as an investment object. The scenarios of practical use are huge, from physical to digital goods and information, all aspects of reality can be displayed and controlled in the blockchain thanks to tokenization.

Crypto tokens create both liquidity and incentives. Thus, you switch control levers between different ecosystem participants, or even between participants in different blockchain ecosystems.

Data tokens can have one of four main “forms”:

  1. Token for data access control (security token): this type of token allows you to participate in the profits from data processing by a special means (SPV for Special Purpose Vehicle), which was chosen to own data for this purpose;
  2. Data Utility Token: access control in the chain: the data itself is stored in “repositories” and becomes available through the transfer of a linked token to ensure joint management by independent economic entities;
  3. NFT data (non-interchangeable tokens, digital certificates of authenticity): NFTs can contain intellectual property: using the same principle, they can also collect a unique set of data and make it available for trading.
  4. Data basket tokens. A “coin basket” consisting of various data tokens (similar to an index) can provide a wide range of diversification with immediate effect.

Growth of the NFT sector

The popularity of NFT has grown this year, thanks in part to high-profile deals such as the record sale of digital artwork “Every Day: The First 5,000 Days” by digital artist Mike Winkelman, also known as Mike Winkelmann. Bipla for $69.3 million through Christie’s auction house.

CryptoPunk NFT: Proof of ownership of one of approximately 10,000 algorithmically generated digital collectible figurines from Larva Labs on the Ethereum blockchain, was sold for $8 million.

Data can be integrated into DeFi applications as a separate asset class in the block chain. Protocols such as OCEAN then allow you to mortgage assets (place bets) or securitize data. Blockchain ecosystems like OCEAN want to unlock the value of data through tokenization.

Ocean data tokens package data services as ERC20 tokens. Owners and consumers use the Ocean Market app to publish, analyze and use data. OCEAN owners ensure the liquidity of data pools on the network. Developers use Ocean Libraries to create their own data wallets, trading platforms and other proprietary solutions.

Crypto tokens usually support a much larger number of practical use cases than coins in their own blockchains. The latter is due to the fact that the close relationship of cryptocurrencies with assets in the real economy leads to added value through the business logic of smart contracts: the ability to manage physical reality from the blockchain. The so-called service tokens are mentioned here.

For example, Lykke AG has developed a recommendation and loyalty platform for its customers, which uses community tokens that can be transferred throughout the ecosystem. Decentralization makes it possible to implement comprehensive loyalty programs.

For Lykke AG and its partner, the law firm MLL Meyerlustenberger Lachenal Froriep AG from Baar, the regulatory environment was no less a serious problem than technology. It was important to ensure that the loyalty token cannot be classified as a means of payment or an asset class, and the blockchain works the same way as in the real economy.

The resulting solution has wide use cases. Lykke’s tokenized platform can finance political campaigns, activate voucher-based actions, manage access pass events, and control many other similar actions using tokens.

Summing up

Tokens create incentive systems, with or without means of payment. The creation of a “blockchain-based data economy” is designed to give companies the necessary freedom of action, and at the same time ensure full compliance with data protection rules.

The next stage on the way to “linking” the economy to the blockchain should include the inclusion of patents, copyrights and, last but not least, IoT data streams