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#binance #tokenized #fond Tokenized and on-chain funds: the difference
The finance and technology space is evolving. Blockchain technologies have entered the traditional investment segment. Two approaches that have been developed are tokenized and on-chain funds. Let's consider their effectiveness and unique features. Tokenized funds
Fund shares are converted into tokens that are minted on the blockchain. Tokens, like shares, represent ownership and can be transferred between holders. The costs of transferring tokens are lower than when transferring ordinary shares.
Tokenization involves splitting shares into smaller shares. This makes investments more accessible.
Tokenized funds still require compliance with the law and there is still a specific company behind them. That is, there may be restrictions for one jurisdiction or another. The investor will also be required to complete KYC.
On-chain funds
The on-chain fund adopts the decentralized model of the general crypto market. Such a fund eliminates intermediaries, including banks. Its operation is automated - repayment and other processes are carried out using smart contracts.
The decentralized nature also means that the client should first examine the fund's reserves. Data about them will most likely be on the blockchain. Like tokenized funds, on-chain funds strive to comply with regulatory requirements. Therefore, they open transaction data to regulators.
The finance and technology space is evolving. Blockchain technologies have entered the traditional investment segment. Two approaches that have been developed are tokenized and on-chain funds. Let's consider their effectiveness and unique features. Tokenized funds
Fund shares are converted into tokens that are minted on the blockchain. Tokens, like shares, represent ownership and can be transferred between holders. The costs of transferring tokens are lower than when transferring ordinary shares.
Tokenization involves splitting shares into smaller shares. This makes investments more accessible.
Tokenized funds still require compliance with the law and there is still a specific company behind them. That is, there may be restrictions for one jurisdiction or another. The investor will also be required to complete KYC.
On-chain funds
The on-chain fund adopts the decentralized model of the general crypto market. Such a fund eliminates intermediaries, including banks. Its operation is automated - repayment and other processes are carried out using smart contracts.
The decentralized nature also means that the client should first examine the fund's reserves. Data about them will most likely be on the blockchain. Like tokenized funds, on-chain funds strive to comply with regulatory requirements. Therefore, they open transaction data to regulators.
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I found this ongoing activity for you.
1 Search for “Learn & Earn” and click on it.
2
Click on Start Learning in the $POND campaign
3 Watch the video and start the test
4 After answering all the questions, you will get...
Your reward within 48 hours.
Learn Binance and get POND test answers
All of the above are all the same three questions
- Resistant market for ZK
Verifiable computing protocol
- TEE Trusted Execution Environment
Complex account authorization
Pond
Oysters and Calypso
#cryptocurrency #fond #learnAndEarn