This new alternative involves representing physical assets, such as art, or commodities, as tokens on a blockchain or DLT.
Here's a simplified explanation:
I- Asset Identification: The first step is to identify the specific real-world asset that you want to tokenize, such as a piece work of art. 🖼️
II- Legal Framework: Ensure that the legal framework in your jurisdiction allows for the tokenization of assets. Compliance with regulations is crucial. 📑
III- #Blockchain Platform: Choose a suitable blockchain platform (e.g., #ETH ) where you'll create the tokens. Consider factors like security, cost, and scalability. 🤔
IV- Smart Contracts: Develop smart contracts that define the rules and conditions of the token. This could include ownership rights, profit-sharing, or voting rights. 💻
V- Token: Create the tokens on the blockchain, each representing a portion of ownership or rights in the real-world asset. These tokens can be fungible (identical) or non-fungible (unique). ✍🏻
VI- Verification: Implement security measures to protect the tokens and ensure that they correspond to the real-world asset. This often involves audits and third-party verifications. ✅
VII- Regulatory Compliance: Ensure compliance with financial regulations and KYC/AML (Know Your Customer/Anti-Money Laundering) requirements. 🔍
VIII- Marketplace: If you plan to trade these tokens, set up a marketplace or list them on existing authorised exchanges. 📊
IX- Transfer and Trading: Users can buy, sell, and trade these #tokens on the blockchain, allowing for fractional ownership and easy transfer. 🧩
X- Asset Management: Continue to manage the real-world asset as you normally would, but now changes in ownership and other transactions are recorded on the blockchain. ⛓️
Consulting with “REAL” legal and blockchain experts is mandatory! 📌
“Weekend…” 🎶
Joaquim Matinero Tor
Banking-financial & Blockchain lawyer
Source: Territorioblockchain.com
