Blockchain Assets: Revolutionizing the Digital World

Blockchain technology has changed the way businesses and innovators think of assets. Today, digital assets such as cryptocurrencies and NFTs have become common, and they are still evolving. Blockchain asset is a secure and digital record that is stored on the blockchain network. Explore digital assets beyond coins and NFTs that we can develop and how it can benefit your business.

At Cyber Bee, we specialize in asset tokenization allowing companies to convert their physical assets into digital representations on a blockchain. Not only does this process improve the items’ security and transparency, but it also creates opportunities for new types of investments and higher operational efficiencies.

In this review, we want to touch upon different types of asset tokens we work with, including Real-World Asset tokens, transactional tokens, utility tokens, platform tokens, governance tokens, and non-fungible tokens. All types have different applications and may bring significant benefits to different kinds of businesses in terms of trade, reduced transactional costs and high levels of liquidity. We believe that our review can help you better understand the practical benefits of blockchain technology and added value of our services.

Asset Tokens We Create

Real-World Asset (RWA) Tokens: RWA tokens that are digital representations of real-world commodities, such as real estate, gold, or even other precious metals, stored on a blockchain network. The tokens help customers to be the fractional shareholders of such assets. Owning RWA tokens allows users to benefit from enhanced asset liquidity and work with smaller risks. The notion of the RWA token concerns secure storage and transfer of property rights through the blockchain distributed ledger technology.

Transactional Tokens: These are the tokens that act as fee paying digital currency for processed transactions between customers on a blockchain network. To reduce possible costs in traditional financial services transactional tokens can make transactions seamless and cheaper. These tokens make it easier to transact and can drastically reduce the costs that usually comes with traditional money movement systems.

The term of utility tokens refers to a type of a token that allows customers to access products or services on a blockchain. Users can pay for numerous services in the framework of a particular ecosystem. One of the well-known examples of utility tokens is the Basic Attention Token or Golem. Such tokens can be utilized by clients in their commercial activities. There is a symbiotic relationship between utility tokens and platforms – while a software creates a form of protection for the token, funds increase network activity, aggregating to the platform’s economy.

Platform tokens: These tokens are used to support decentralized applications (dApps) on the blockchain network. In most cases, they enable platform users to interact with a certain application, meaning that their owners usually have some voting power and might influence the development of the platform. Moreover, users have the opportunity to use the acquired tokens to pay for the platform’s services.

With governance tokens, holders can vote on key matters like what changes are to be implemented in the application or protocol. In most cases, the protocols do not have any central authority. Hence, such tokens prove to be extremely useful while making crucial decisions. For example, Compound, a popular savings protocol, issues a token called COMP. It allows users to vote on how to upgrade Compound. The more tokens a user gets, the more votes they get.

Non-Fungible Tokens (NFTs) have gained significant traction in the cryptocurrency space. They signify ownership of unique digital assets, most commonly digital art. However, NFTs can also encompass items such as tweets, videos, and more. These tokens effectively prevent the sharing and duplication of digital creations, serving as a certificate of authenticity for digital works on the internet.

Find out how Cyber Bee can help take your business to the next level with asset tokenization solutions. Explore the world of blockchain-based assets to unlock new ways to create value, improve liquidity, and boost transparency. Learn more about our Real-World Asset (RWA) tokenization services here.

Digital Asset Tokenization Benefits

Operational Efficiency: Tokenization utilizes blockchain technology to streamline processes and lower transaction costs for digital assets. Smart contracts have the ability to perform a wide range of tasks automatically, they can eliminate intermediaries and reduce paperwork. As a result, settlements happen many times faster and with fewer mistakes at very little cost.

Asset Fractionality: Tokenization allows digital asset division in smaller tradable units, providing more participants with a seat at the table and now some investors are able to enter deals once considered only for those who could easily fund.

Transparency: he distributed ledger that is a feature of blockchain provides market players an open, clear record upon which to base trust and reduces the potential risk with fraudulent transactions or disputes. Furthermore, audit trails are readily available and can be audited for accountability and compliance.

Blockchain as Single Source of Truth: This digital record enables all stakeholders to have one unambiguous reference point for everything related to the management and trading of these assets, eliminating any possibility for discrepancies.

Peer-to-Peer (P2P) Asset Trading: A tokenized investment asset can be traded directly between two parties, removing the need for an intermediary to manage or facilitate transactions (P2P trading).

Regulatory compliance: Blockchain provides transparent records and audit trails for digital representation of assets. Smart contracts can also be coded into compliance and to restrict unauthorized behaviors.

Businesses can leverage tokenization to create innovative financial products, such as asset-backed tokens or security tokens, which can enhance liquidity and attract diverse investment opportunities. This can have wider benefits in terms of entrepreneurship and economic growth, as tokenized assets are a far more efficient way to raise capital, e.g. through Initial Coin Offerings (ICOs) or Security Token Offerings (STOs).

Use Cases in Asset Tokenization Across Different Industries

Blockchain technology is redefining the way assets are managed in various industries, bringing innovative products that go well beyond traditional financial instruments. Here is how tokenization of an asset is impacting different markets:

Venture Capital Funds

Access: Tokenizing venture capital funds enables the segmentation of funds into smaller pieces and open up access to a wider spectrum of investors, including retail participants that cannot meet traditional VC fund’s minimum investment requirements.
Liquidity: Tokenization improves the liquidity of venture capital funds, soinvestors can buy and sell their shares at more frequent intervals and better pricing. As a result, a wider range of investors is able to invest in venture capital.
Accelerated Capital Raising: Tokenized VC funds can be established more swiftly and effectively, as they can be marketed globally and traded across diverse platforms.
Transparency: The tokenization of VC funds allows investors to make more informed decisions about fund performance, investment strategies, and fee structures.

Stablecoins

Increased Efficiency: By utilizing blockchain-based stablecoins, transactions can be completed faster and more efficiently than with traditional payment methods, minimizing the time and cost associated with settlement.
Security: The security of stablecoins is potentially greater than that of traditional currencies since they are less susceptible to counterfeiting and inflation risks.

Insurance

Fraud Mitigation: Blockchain can help in recognizing and preventing insurance fraud by keeping a permanent record of claims and policies details.
Claims Process: Tokenization can enhance insurer and policyholder efficiency by streamlining the claims process.
Advanced Risk Management: Blockchain technology can be used to improve risk assessments and pricing for insurance products.
Transparency: As tokenization technology provides transparency in insurance the customer gets more detail information about the policy and coverage.

Collectibles

Authenticity Verification: Tokenization provides a tool for verifying the authenticity of collectibles, meaning that there are fewer risks of counterfeit collectibles traded.
Improved Liquidity: Tokenized collectibles are more liquid, meaning they can be traded more easily and at better prices relative to their physical counterparts.
Lower Transaction Costs: Tokenizing a collectible diminishes the expenses of transactions associated with the buying and selling of such items for collectors.
Broader Market Access: Tokenized collectibles can become available for a wider market, therefore, increasing their value and possible gains for collectors.

Real Estate

Fractional Ownership Opportunities: Tokenization allows real estate assets to be split into smaller units, making them accessible to a wider array of investors.
Enhanced Liquidity: Tokenized real estate can be exchanged more easily and at more favorable prices compared to traditional real estate, aided by blockchain’s liquidity enhancements.
Reduced Transaction Costs: The costs of the transactions carried out to acquire or sell real estate are higher when real property is involved. Tokenization provides a way to make such transactions cheaper for investors.
Improved Property Management: Tokenization enhances property management by offering a clear and efficient means to monitor ownership, rental income, and expenses.

Asset Management

Better Management : For managing illiquid assets, tokenization makes the process of their management significantly simpler and cheaper in terms of time and efforts.
Transparency : Tokenization makes asset management more transparent for the investor. Each investor can see the specifics of all their assets, the status of their development or management, and the success of their performance.
Better Liquidity : Illiquid assets become more liquid, and tokenized assets can be easily bought and sold by investors, with simplified procedures for such transactions.
Cost Reduction : The costs of managing illiquid assets decrease due to tokenization because there is no need to overpay for custody, and transactions.

Apart from the industries, in which digital token is already a driving force, there are plenty of other domains to experience digital assets boost. For instance, in the supply chain industry, tokens can be used to locate a certain shipment and verify its credentials. In the energy industry, tokens can be used to represent renewable energy recorded for a unit of a renewable source or to facilitate peer-to-peer energy trading. As an incentive tool, tokens can be utilized in the healthcare sector to encourage healthy choices made by the patients or health care workers. As the existing technology keeps evolving, the number of opportunities to utilize tokenization tools in various domains will increase.

Execution Process: Leveraging Blockchain Technology

Asset tokenization is not an easy task and requires comprehensive planning and strides. This instruction can help create a decent and scalable tokenized platform. Following these steps and taking advantage of blockchain benefits you you can successfully tokenize assets and unlock new avenues for value creation, enhanced liquidity, and improved transparency.

Key Steps:

Consultation & Assessment: Review of your needs and objectives, along with the individual aspects that may affect your own assets or desired outcomes.
Token Design: Create a tailored token structure and economic model that aligns with your business objectives and regulatory requirements.
Blockchain Platform Selection: Based on your scalability, security requirements choose a right block-chain with which you work well.
Smart Contract Development: Develop custom smart contracts to automate processes, enforce rules, and manage the flow of interactions between token holders and your platform.
Token Integration: Integrate your assets into the blockchain, ensuring seamless and secure transfer and interaction between token holders and your platform.
Launch of the platform: Deploy its tokenized version and provide it to investors & users.
Ongoing Management: Deliver maintenance, security updates and compliance oversight to ensure the platform continues running.

With the above steps and help of blockchain technology, you can tokenise your assets to open up new opportunities for your business. Cyber Bee will help you in all stages of the tokenization process, instructing and making suggestions at every point to ensure satisfactory results.

We also invite you to explore our article: Blockchain as a Service: Unlocking Secure and Streamlined Business Operations. This blog post delves deeper into the benefits of leveraging blockchain technology for businesses.

The Digital Asset Future

The emergence of blockchain technology is enabling unprecedented capabilities with regard to the creation and management of digital assets. The utilization of decentralized networks and cryptographic security by blockchain assets will add liquidity, transparency as well as the efficiency.

At Cyber Bee, we’re here to help businesses make the most of the digital world. With our experience in asset tokenization and a solid track record, we can help you streamline processes, make things clearer, and open up new opportunities for growth.