Blockchains have largely been used for cryptocurrency (since the introduction of Bitcoin), and later Decentralized Applications (dApps) and Decentralized Finance (DeFi). Other avenues presently being explored are logistics and medical technology for patient privacy.
However another amazing opportunity has emerged hitherto unexplored – the tokenization of Real-World Assets using blockchain technology.
In this article we’ll explore how Real-World Assets (such as real estate, physical artwork, bonds, or commodities) can use blockchains to tokenize investments and ownership offering a greater participation in the economy for ordinary people regardless of income.
How Do Blockchains Help with Real-World Assets
A blockchain as we’ve explored before is just a decentralized public ledger (much like your accountant or bookkeeper uses which stores opening balances, closing balances and timestamps, but everyone has a copy while personal details are encrypted). This technology keeps a transparent record of any transaction without compromising user privacy. This of course is a great fit or cryptocurrencies which are fungible tokens (that just means more than one token can be made), but how does this translate into a unique record? Enter non-fungible tokens.
Non-fungible tokens (also known as NFTs) have been unfortunately maligned as people used them incorrectly sharing easily copyable media such as pictures which were then endlessly shared.
What an NFT is supposed to do is offer a unique signature that’s exclusive to the person owning it (much like your fingerprint or your DNA). This means if you keep your digital signature secure (passwords, mnemonics, multi-factor authentication, etc.) no one can duplicate your unique key.
How does this play in with Real-World Assets?
Well, your unique signature shows your exact shares, value, etc. that you possess.
This cannot be tampered with, and everyone can see any attempted manipulation of the data (which is penalized harshly) on the public record.
How Can We Buy or Sell?
Just like with normal money, blockchains allow us to use a digital representative of currency.
Therefore, Real-World Assets can be purchased using cryptocurrency.
This obviously is quite normal in crypto. But we can add NFTs and using either crypto (or even fiat) allow people to purchase shares in Real-World Assets (whether as a whole or even in small shares) that verify their ownership. These records cannot be tampered with, and if more than one person purchases shares, any changes in ownership will need to be ratified by all parties involved.
Imagine anything from a rare painting to even a skyscaper!
A group of people can form a digital association (often referred to as a Digital Autonomous Organization or DAO) where they can pool their resources and purchase shares. This means even a massive building like a multi-level skyscraper can be owned fractionally by all members of the DAO.
Sales, transactions, even rent can be automated using smart contracts (self-executing blocks of secure code on the blockchain) and transactions can be done with little overhead if the owner or owners agree.
This could even be used for investment, bonds, equities, etc. The sky really is the limit!
How Does Coin Afriq Help?
Because Coin Afriq is an extremely advanced ecosystem with a blockchain that uses the latest in cutting-edge technology (we even guard against supercomputer threats) and that plays nicely with traditional finance (due to support the new ISO-20022 standard), this means that we offer a secure platform where people can engage in fraction ownership that works seamlessly and without the overhead of traditional transactions.
We have support for both fungible and non-fungible tokens, meaning it’s not just a cryptocurrency, it’s a blockchain that can power ownership as tokens, and that can use smart contracts to ensure seamless transaction, reduce overhead, and ease logistical burden.
The Next Step in Asset Ownership
In a world where digital innovation is rapidly redefining traditional finance, the tokenization of Real-World Assets represents a powerful opportunity to democratize investment. By making high-value assets accessible to everyone, this technology is not just changing how we transact, changing who can participate.
Coin Afriq is at the forefront of this revolution, providing a secure, compliant, and easy-to-use platform that bridges the gap between digital and physical wealth. Our advanced blockchain and smart contract technology ensures seamless, secure, and transparent transactions, allowing you to confidently engage in the future of asset ownership.
Ready to explore a world where you can own a piece of anything from real estate to rare art? Discover how Coin Afriq is making fractional ownership a reality and start your journey with us today.
Visit us at https://coinafriq.org or email us at info@coinafriq.org