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What is a Protocol in the Tokenization Universe?

O que é um Protocolo no Universo da Tokenização?

What is a Protocol in the Tokenization Universe?

The protocol in the world of tokenization plays an important role, and is even considered central to this type of service. The entire infrastructure of a tokenized financial asset depends on this protocol, which works according to the type chosen, i.e. the most appropriate for a given security. This protocol establishes rules, concepts and how the security can be traded and used. In addition, it is through the protocol that this same tokenized asset receives its main security and transparency properties. Understanding a token’s protocol means understanding the most basic data of this financial asset and how to proceed in its process.

What is a Protocol in the Tokenization Process?

Protocol in the world of tokenization can currently be defined as the technology, standards and rules used when forming a tokenized asset. An example of a very famous protocol is the Ethereum ETF, an open-source blockchain platform. Because it is open-source, the Ethereum protocol is extremely famous and used in the market and can produce many different tokens. But there are other platforms and protocols to work with, such as:

  • Cadeia inteligente da Binance;
  • Solana;
  • XDai;
  • Polygon;
  • Circle.

All these protocols have their importance, and can be used in different contexts and assets. In general, they are accepted on the same platforms and can all provide access to digital investments for companies; their differences are technical and focus on specific properties. In Brazil, VASPs operating in the tokenization market must be familiar with all the protocols.

Impact of Protocols on Token Structuring

The protocol in the universe of tokenization is basically the asset itself, the means by which it is created and sustains itself in the market. Its impact is crucial, we can see in the creation of Ethereum, for example, a historic milestone in the tokenization market, practically a technological revolution in the area. It is the protocol that guarantees the commercialization of the token, whether it can be marketed easily, its compatibility with the main platforms and virtual wallets. Even transaction fees are linked to the protocol by which the token works. Worldwide, the creation of the protocol in the world of tokenization has been almost incalculable. Today, this market moves billions of dollars around the globe and continues to have high expectations for the future. All this success has only been possible thanks to protocols that were initially linked only to cryptocurrencies and which can now be used for tokenized assets of various kinds.

Exploring BLOCKBR Protocols

BLOCKBR, which specializes in tokenization and solutions in the digital asset financing market, preferably uses the Ethereum protocol. However, we also work with other compatible protocols such as Polygon, Solana, Binance Chain and others from blockchain technology. Our mission is to offer companies throughout Brazil, especially small and medium-sized ones that need liquidity in their search for capital, direct, secure and advantageous solutions. Asset technology allows your company to raise funds more quickly and can increase the number of investors in your business.

Increase your capital safely

One of the great advantages of tokens is that they offer a quick way to raise capital and expand the ways in which your company can get more investment. Tokens are accessible, especially with BLOCKBR and its Whitelabel platform, designed for companies to market and manage their tokenized assets.

  • Designed to help fintechs and SMEs – small and medium-sized enterprises;
  • It offers support for those looking for tokenized investments;
  • Spaces for digital signatures and documents;
  • Offers investor management;
  • It creates a separate and secure environment for both companies and investors.

All these advantages are available on BLOCKBR’s Whitelabel platform. For anyone looking to understand what a protocol is in the world of tokenization in practice, the tool is indispensable and provides a clear overview of the technology. This is the perfect platform for your company to participate in the digital asset market.

Criteria for Choice: Efficiency, Safety and Performance

When it comes to choosing the perfect tokenization protocol for your business, there are a number of factors to take into account, such as asset performance, security and even efficiency. Each protocol offers some kind of strength and advantages for certain uses.

Efficiency

The efficiency of a protocol in the universe of tokenization is important and relates especially to the way in which the asset can be marketed. In general, protocols have excellent liquidity, which means that they can quickly be sold and generate income for the company, which is an interesting way of earning capital. However, its efficiency goes further and dictates how this protocol can be marketed, where it is accepted and on which platforms it is traded. Another important element is the cost of the protocol; the better the cost benefit of tokenizing assets, the greater its efficiency.

Security

Of all the properties present in blockchain technology, security is one of the most crucial aspects. This type of technology is well known for being decentralized, which means that failures cannot affect the entire mechanism by which tokenized assets work, as the information is distributed across several computers. The entire system is also encrypted, which makes every tokenized asset impossible to replicate or copy. They also become immutable and there is no way to manipulate an asset once it has been generated, these features combined make the protocol in the tokenization universe extremely secure.

Protocol in the Tokenization Universe: Performance
Image: Canva

Performance

Finally, another point that must be observed in the tokenization protocol is the performance of the asset, how it can be adapted and performed by your company. This is the topic that deals with how tokenized funds can contribute to your activities and the liquidity of your capital.

Get to know BLOCKBR’s tokenization infrastructure

BLOCKBR’s tokenization infrastructure is second to none. The company focuses on offering all the technological support necessary for your company to be able to participate in all the benefits of tokens. Not only do we offer the ideal tokenization protocol for your assets, but we also take care of the entire platform. Our services and resources comply with Brazilian regulations and platforms and we offer solutions for both companies and investment advisors. In our collection there is support to familiarize yourself with the technology of DREX, Bitcoin ETF and other cryptos, where we use their blockchain technology to promote the sale of tokenized assets for your company.

Migrate to tokenization with BLOCKBR infrastructure, Access Funding with BLOCKBR Plugged-in Investment Advisors.

The unlocking of the capital market, giving access to new types and structures of investments through tokens, is bringing a universe of opportunities every day. Blockchain technology is an environment of high security and transparency, as well as being a backdrop for the creation of new operating models. To understand which tokenization model and infrastructure you can use in your operations, you just need to understand the opportunities you can take on, whether as a structurer, originator or distributor/investor. Become an investment advisor for digital assets (structured tokens) through BLOCKBR. You can also be an asset structurer and use our entire risk analysis, legal, technological and commercial infrastructure for distribution with Station or, if you prefer, just raise tokens by investing in your operations or RWA assets. Count on us.

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