Often confused as the same investment techniques, STOs and Asset tokenization are actually different.

STOs are digital tokens that represent ownership in a company's assets or profits. When you buy STO tokens, you own a portion of the company and are entitled to a share of its profits or assets, like traditional investments.

Asset Tokenization on the other hand, converts physical assets like real estate, art, or commodities into digital tokens. Investors can buy these tokens and trade or exchange them on a blockchain platform, which makes them more accessible.

The main difference between the two is that STOs represent ownership in a company, while Asset Tokenization represents ownership of a physical asset that has been converted into a digital token.

So whether you're interested in traditional assets or unique collectibles, STOs and Asset Tokenization can offer investment solutions for everyone.

The blockchain community consistently debates the need for KYC solutions in decentralized platforms. Different stakeholders have varying opinions based on factors such as regulatory compliance, privacy concerns, and the principles of Decentralization. 

💡 Tata Consultancy Services has a solution called Quartz, leveraging blockchain and AI technologies that address financial institutions' KYC, AML, and Fraud management needs. 

💡 Wipro has a solution named Dice ID, a decentralized platform for verifying identity credentials.

Source: The Economic Times

Check out few key debate points:

KYC Should be:

✅ can help platforms demonstrate compliance, reduce legal risks.

✅ can mitigate risks associated with fraudulent activities, identity theft, and scams within decentralized ecosystems.

✅ can authenticate the identities of users, which contributes to establishing trust among participants.

KYC Should not be:

☑ KYC requirements contradict these principles by mandating the collection and storage of personal information, which could be at risk of breaches or misuse.

☑ KYC processes may pose barriers to entry for individuals who lack the necessary identification documents or who live in regions with limited access to traditional financial services.

☑ Integrating KYC solutions may introduce additional complexity and compromise the decentralized nature of the platform.

In my opinion, the necessity of KYC solutions in decentralized platforms is highly dependent on the platform operators' specific use cases, regulatory landscape, and goals. Striking a balance between regulatory compliance, privacy, security, and inclusivity is crucial for decentralized platforms' long-term success and adoption.