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For cryptographic promoters, blockchain technology offers more than just a ledger to exchange cryptocurrencies. It can improve the efficiency and transparency of the supply chain, ensure a secure record keeping and accelerate processing time in encrypted transactions.
However, another aspect that is becoming increasingly popular with the advocates of the distributed ledger is the tokenisation of resources.
In short, tokenization converts rights to a resource in a digital token that are stored and managed on the blockchain. Enthusiastic crypts argue that the process opens up the possibility of a whole new financial ecosystem.
"This new tool shows the true potential of blockchain technology and offers a glimpse into the future of finance for global markets," wrote the Open Finance Exchange team, a trading platform for alternative digital assets.
How big? Proponents argue that everything from art work to securities could be ripe for interruption.
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But until today, implementation has been unpredictable at best.
Singapore Airlines has recently started a tokenization program for its member miles. By turning miles into tokens contained in a digital wallet on the phone, the airline allows its customers to use the credits for more than flying.
"It's still supported by the fiat value, but it helps Singapore airlines to have greater reach for merchants who are willing to accept digital tokens," said Arun Ghosh, US blockchain leader at KPMG. "If you want to stay at the hotel in Singapore, have a coffee, them [Singapore Airlines] they are bringing others into their ecosystem ".
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At the other end of the scale there are security tokens, tokens that derive their value from an underlying asset, with real estate seen as the most mature sector for development.
"We have not seen the volume in traffic or interest," Ghosh said, referring to questions relating to real estate tokenization, but added the case of tokenisation of leases and securities in the sense that they are transferred regularly, especially in commercial real estate.
But Open Finance Exchange has claimed that real estate is open to interruption through fractional ownership. "Going back in time, the reason why alternative resources have been difficult to trade in the first place is that we have not had an excellent way to divide ownership, record the percentages owned and manage sales, especially when more owners are involved" He said.
"The compensation and settlement process for alternative activities can last for weeks, which is more or less the opposite of what it means to be a liquid market." In addition, proponents propose the tokenisation of resources, especially real estate, greater transparency leads to better evaluation.
In addition, blockchain supporters would tell you that digital transactions are cheaper than using an intermediary and can be processed more quickly.
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However, despite the growing clamor around the tokenisation of resources, Ghosh said that the idea that all resources can be tokenised is out of place.
"Not everything will be tokenised, it's a great concept, everyone wants to explore it, but statistically, we advise customers not to do it, or at least not until they have the technology in order," he said.
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