Tokenization
Tokenization is the process of replacing valuables (such as money, stocks, credit card numbers, medical records) with tokens corresponding to these values, which makes trading them easier and safer.
Paying for goods via the Internet would be much riskier if not for tokenization. For example, confidential credit card data is converted into a digital token, which is useless for hackers, but is used by banks to complete a payment.
Despite the fact that people have been using tokens on a daily basis for a long time, the real potential of tokenization is being revealed only now — thanks to the influence of the blockchain. It allows you to safely and efficiently tokenize a wide range of real assets and businesses, providing new benefits and applications for a wide variety of industries, such as art or healthcare.
Why blockchain business
The opportunities that blockchain provides are of interest to any large business, as well as the public sector. From the very appearance of this technology, it became clear that in the future it forms an economy of mutual trust, will allow companies and ordinary people to carry out financial transactions without intermediaries and in a matter of seconds, will exclude any possibilities for falsifying elections and referendums, will give users the right to manage their "digital footprint" on the Internet, will help content creators to receive decent remuneration for their works will negate piracy and open up limitless opportunities for the development of new types of business.
While cryptocurrencies are developing best on the basis of blockchain, nevertheless, the interest of customers is gradually moving from the theoretical plane to the practical one and many large companies are implementing a distributed registry to automate key business processes: document management, logistics, voting, financial transactions, loyalty programs, user and customer accounting, collecting investments, issuing digital shares and much more.
Trusted environment
The technology is designed to provide a so-called trusted environment where each participant and its operations are verified by several independent network nodes. In such an environment, contractors united by one end-to-end business process can quickly transfer data, documents, valuables, and conduct mutual settlements without worrying about the formalities that smart contracts take on — contracts between participants set out in the program code. Thus, employees of companies get rid of redundant communications, the time of their interaction is reduced, the need for face-to-face meetings often disappears.
An excellent example is blockchain platform of the Russian Federal Tax Service. The platform has combined three regulators and more than 70 banks with the help of a blockchain network to issue subsidies to small and medium-sized businesses.
New level of business
Blockchain can take the process of managing companies and their capital to a new level thanks to the speed of decision-making. Solutions in the field of remote electronic signature in combination with distributed registries allow you to transfer the management of the company in real time, since corporate procedures, meetings of the board of directors, shareholders, and other participants may not stretch for weeks and months.
