Many people still associate cryptoactive to something complicated to understand and feel insecure – which is human nature in the face of innovation and fear of negative experiences, a feeling that is a hallmark of our financial behavior. So why invest in tokens?
Because the reality of this cryptoactive is very different from what first impressions may show, especially when we compare it with cryptocurrencies and they are two completely different financial assets from each other.
While digital currencies have become an investment with high volatility and speculative grade, business tokens are an agile and safe strategy to invest in traditional financial products, business projects, and the most diverse products and services.
Investing in tokenized assets has become extremely simple and best of all, democratic.
It is possible to buy tokens for very low amounts, which favors small investors and those who always wanted to invest capital but had difficulties with the big companies and brokers.
BLOCKBR, a web 3.0 native company, will talk about the advantages of token investing to help you take advantage of this investment potential!
ARE ASSET TOKENS LEGAL?
This is a natural fear of people, after all, the most famous crypto-actives, the cryptocurrencies, have been on the market for a little more than a decade, tokens are even newer and the doubts are many.
However, it is important to note that tokens are legal.
They are financial digital assets whose operations are currently subject to the Civil Code and laws governing crowdfunding projects. Therefore, there is legal protection for sales and purchases of asset tokens.
A recent piece of good news is the approval in the Senate of a bill regulating digital currencies with the intention of improving the operating and legal conditions of these crypto-actives.
And what about the business token?
The tendency is for them to be more easily regulated, since tokens are not investments per se, but a digital representation of businesses in a wide variety of market segments, from agribusiness to stocks.
Here are some advantages of investing in tokens!
In our article on buying and selling tokens, you can find important tips to make your token experience the best one!
SECURITY IN TOKEN TRANSACTIONS
Security is a major differentiator of asset tokens and is supported by a few concepts.
BLOCKCHAIN
The blockchain is a digital environment of huge proportions, composed of an immeasurable amount of computers capable of processing a large number of transactions at very high speed.
Each computer, called anode, is a validator of every transaction that is made on the network, from purchases of tokens from companies – the primary market – to trades between people – the secondary market.
Blockchain is used by companies and individuals who want to offer tokenized goods and rights. The investor simply accesses a crypto-active marketplace and uses a digitalwallet, in which the purchased tokens and digital coins are stored.
Security is the priority of a blockchain to ensure that so much processing is done without risk to offerors and investors. That is why the most modern and effective security protocols and high-level encryption are used.
CONSENSUS PROTOCOL
The consensus protocol is the way the network uses to validate each token operation. In general, and without delving into the technical workings of the consensus protocol types, we have:
- All computers on the network, without exception and simultaneously, have the same database;
- When a new token transaction comes up, each one will check the data in the base against the data entered by the user and validate or not the authenticity of the operation;
- The transaction can only be made if all nodes in the network validate;
- Once approved, the seller’s and buyer’s digital wallets are updated with the balance that tokens traded.
The transaction is added to a network of data blocks with a unique identification, the hash code, so there is no way for a malicious computer to fraud it.
TaaS: Everything you need to know about token-as-a-service!
DECENTRALIZATION
Decentralization is the fundamental concept behind the creation of the blockchain and cryptocurrencies – it ensures that there will be no central control, either external or internal, of the data. Therefore, the blockchain is a distributed database.
If we think of a banking system, there is a central server, but in the block network, each point (computer) is a server and everyone must validate what happens, as we saw before. This ensures that data is not stored in one place and more susceptible to attacks.
TRANSPARENCY IN TOKEN OPERATIONS
All the processes of a tokenization are 100% electronic, with no interference from people, but you must ask yourself: how will you receive your monthly income from a receivables token you purchased on the marketplace?
The answer lies in the central instrument of the token offering – the smart contract.
SMART CONTRACT
The smart contract is a digital file with all the conditions of crypto trading and responsible for the electronic management of all these conditions.
For example, for a token offering a wind project, the smart contract stipulates:
- Minimum investment amount;
- Unit value of the token;
- Remuneration and periodicity of its payment;
- Offer deadline;
- Operation life;
- Type of operation (whether it is public or private);
- Distributor (the tokenizing company responsible).
The smart contract works, in practice, as the service desk, the fund manager, and the person who monthly checks and releases the earnings to people’s accounts in a traditional financial product (stocks, debentures, and others).
This ensures total transparency, because there is no human influence and the blockchain has all the information it needs to process the tokenization. In addition, all operations are always available for consultation by the participants of the offer.
DIVERSITY OF INVESTMENTS WITH TOKENS
With the token market growing rapidly, we have a wide variety of opportunities and application levels. In other words: a lot of business for more people.
There are two reasons why you can, nowadays, invest in tokens with 50 reals, have great returns and motivate yourself to invest more.
- Growth of tokenization: turning assets into tokens provides many benefits for owners, stimulating and increasing diversification, and assets and rights to participation in projects and relationship programs;
- Tokenization makes it possible to fragment an asset into much smaller parts and thereby allow access to small investors.
Right now, more companies, groups and individuals are offering tokens with great expectations of profitability and low risk!
BLOCKBR Digital Assets
is a web 3.0 native fintech that brings together technological innovation and digital knowledge to transform physical assets into digital assets, in the process of tokenizing assets.
The supply of physical assets and tokenized financial assets, both current and new, is democratic and decentralized, which makes the way of investing safe, simpler and more efficient.
We enable, structure, issue and offer tokens on our platform and beyond. Be aware that tokens depend on feasibility and regulatory factors.
Do you want to tokenize your business or part of it? Do you have a business solution and does it make sense to issue your own token ?
