The Blockchain was first conceptualized to provide support for cryptocurrencies, and aid in their transactions. Ever since, the technology has been harnessed in different fields, and shown great results.
Recently, a Blockchain startup, IDA mentioned that tokenization of assets can actually help harness the power of the Blockchain to a maximum. In fact, IDA suggested, that creating a platform would also help businesses and individuals to achieve that goal.
This platform of IDA helps to link the physical and the digital economies, which has been a challenge. According to the startup, the digitization of assets can strengthen rights of ownership. This will allow everyone to track resources, and create a tamper-proof record of transactions, in addition to preventing waste.
The ecosystem also includes other modern technologies like artificial intelligence and Internet of Things, which will help in advancing the new system.
Advantages of the New Platform
The advantages of digitization of assets are far reaching and many fold. When it comes to industries, it can help in new business innovation and business models. For business owners, it can also help in automating certain business tasks.
Different fields of business, including technology, automation, and education can benefit from this. According to IDA, “digitizing intellectual assets has created a strong network effect for knowledge sharing.”
With the digitization of the agricultural field, improved food safety measures would be normal. Additionally, fresh produce is also a result of using the platform in agriculture.
Why Blockchain?
While explaining about why the Blockchain was used, IDA says that the Blockchain lowers barriers for both businesses and consumers. Additionally, the technology also helps to drive down costs and ensures learning curves for the users.
Blockchain technology also makes it easier for managing assets and overcoming geographical boundaries.
Two-Tiered Token Structure
One of the benefits of the new platform from IDA is that it has two-tiered token system. The primary token functions like the common currency platform and as a bridge with the real world. However, the second token represents digital assets anchored to digital goods. With the change in ownership, the secondary tokens play a key role, as they change the tangible ownership.
The Blockchain based startup has already provided a demonstration of the second token in action. Over time, the transactions and the volume will increase. One of the key features of the token system is that it is independent of direct market volatility. This makes them “an excellent safe haven for assets and equities.”
In order to prevent fraud, the startup stresses due diligence, especially for people who want to convert their assets to MRT tokens. Similarly, a token is destroyed when it is redeemed.
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