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Tokenization of everything? What are the possibilities of tokens in society

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Tokenização de tudo? Quais são as possibilidades dos tokens na sociedade

Tokenization of everything? What are the possibilities of tokens in society

Tokenization is one of today’s main trends. Discover the possibilities that this wave can offer to companies and people.

To say that tokens are a technology trend already seems a bit old-fashioned. In the last few months there has been no shortage of content addressing this concept in every imaginable way. Just give it a google and it’s all there: blogs, videos, podcasts, interviews, news in newspapers, websites, radio and television. Even those who have never used a token must have heard of its possibilities.

Against a backdrop where everything seems to have been said and explained, it is almost foolhardy to explain the possibilities that this tokenization wave can offer companies and people. It would be if this niche really was at the limit of its evolution. However, it is increasingly evident that it is growing rapidly. The tokenization of everything, therefore, is far from being a mere rhetorical device.

To get an idea of the size of this market, an analysis by The Boston Consulting Group and ADDX, indicates that global revenues are expected to be $310 billion by 2022 and could surpass the $16.1 trillion mark by 2030, with tokenized assets expected to account for 10% of global GDP by the end of the decade, according to the report.

The reason for this, as you might expect, is rapid technological advancement, allowing the development of increasingly robust solutions that use tokens to secure sensitive information and web transactions. Parallel to this, it has become much easier to tokenize physical assets, allowing various industries to develop their own designs on their products and services.

As can be seen, although cryptocurrencies have fluctuated within their own volatility in recent months and NFTs live with a bubble that already shows signs of bursting, tokenization itself is a consolidated phenomenon and therefore should grow. This is because we are not just talking about investment assets or financial transactions, but a model that reduces bureaucracy and democratizes access to segments previously seen as distant and closed.

Of course, the idea of tokenizing physical assets and creating digital versions first gained ground in negotiations for the purchase and sale of goods. Let’s face it, it is much easier and simpler to trade real estate tokens than the property itself – which brings more money into the real estate market, for example. This is why even today we associate this movement with financial and investment transactions.

The point is that tokenization represents much more than this for companies and individuals. The use of smart contracts in transforming physical assets into digital ones, the cryptography itself in the blockchain network, and the possibility of broadening public participation are interesting attractions even for more traditional markets, such as mining, public administration, and healthcare.

But even these have designs on making the best use of tokens, whether for utility purposes in hospitals or for attracting uncomplicated investments in heavy industries.

So it is no exaggeration to talk about tokenization of everything. If today we already buy products through tokens in retail, you should know that this feature will expand even more in the coming years. The idea of the Metaverse, with the integration of physical and digital environments in the same experience, depends largely on the popularization of tokens.

With them, it will be possible to take all social relations from the “real” world to the “virtual” world, be they financial, labor, or even friendship relations.

Of course, this is a futuristic scenario dependent on constant technological advancement and society’s adaptation to change. The popularization of digital alternatives demands deep transformations in the social structure – which invariably results in a new legal framework capable of dealing with all the nuances involving this new reality. When this happens, we will quickly see the greater presence of tokens in everyday life, ensuring the agility and experience that businesses and people are so desperately looking for.

While many are reticent about tokenization going forward, others are already preparing for these challenges that will arise sooner or later. Like Don Quixote fighting windmills, these people try to stop the advance of technology in all social spheres. Instead of fighting against it, it is much more fruitful to understand, comprehend and, of course, identify the positives it has to offer in our lives. Not least because tokens are no longer the future, but the present.

Source: Exam

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