Blockchain development and step by step tokenization. iTizzi Software Development Company – Kyiv, Odesa, Ukraine

It consists in the creation of tokens or cryptocurrencies and their strict assignment to a specific project, company or person. With the development and adaptation of blockchain technology, the potential for tokenization has become enormous, including through the development of smart contracts to tokenize all types of assets while reducing the cost of their transfer. Let’s break down the definition into prime factors and give specific examples at the end.

Let’s start with what blockchain development is (iTizzi, Vinnytsia, Odessa). It is a database that stores the history of our transactions, payments and accounting records. He performs the role of a kind of “accountant”, having gained access to which, we can check the state of our company. In short, instead of keeping records on paper, we enter data into the blockchain platform, which is a public and open platform, although users are anonymous and anyone can access it. Thanks to this, everything is visible, transparent and at the same time safe. How? As the name suggests, the blockchain is made up of blocks of data. Each data block contains a certain number of transaction records. Such blocks are linked to each other, which means that if someone wants to change the data (for example, transfer tokens from someone’s account), such an event will fail.

Now tokens. This is nothing more than digitalized asset ownership. Until the 1970s, the US dollar was a kind of token, only in the electronic version. During this period, such a dollar was proof of ownership of a certain amount of gold that could be obtained by exchanging the dollar. Such tokens are most often issued by a person who would like to receive external investments. The investor buys tokens, giving them value. This is done through an ICO or STO – a fundraising used to fund a specific project. Such a token is equivalent to a share in a commercial company and differs in that it is not a share, but a right of ownership. It is worth mentioning that a token should not be equated with a cryptocurrency, because a token is the ownership of something, and such a right can be purchased with cryptocurrency. In addition to the fact that databases in the case of a cryptocurrency and a token work in the same way, the rest is based on different mechanisms.

The last issue to be mentioned is the smart contract. This is a piece of computer code. This contract is not smart by itself, but when all parties to the transaction reach a consensus on the outcome of its implementation, it becomes reasonable. Those who have tokens in a given investment express their will for a certain vision of a common property. What is most often repeated among them is the basis of the contract, which becomes reasonable at the moment of reaching consensus, because it will now list what, who and how much is due.

Why is the development of a blockchain for tokenization at iTizzi (Dnipro, Lviv, Kiev) better than classical investment methods?

The first of these conclusions is that blockchain eliminates many formalities and at the same time gives access to all data related to resources, such as, for example, ownership history. According to industry experts, seasoned investors have identified two main benefits of this process: efficiency and economy. Ryan Serhant (author of the bestselling Sell Like Serhant) described tokenization as a new funding method that could be a better alternative for both the project itself and the investors. A fairly illustrative example is the tokenization of shoes from the famous sports brand Nike. The main purpose of the token in this case is to provide benefits to both the seller and the buyer. With it, the user can better control the shoe design. For example, with the help of a special application, he sets a numerical limit for the release of models that a manufacturer can make. This token also allows for the recording of genotypic information, including specific attributes of the shoe.

What else are the advantages of blockchain development, smart contracts for tokenization?

• Ability to sell and buy “shares” without the need for intermediaries, with one click, 24 hours a day, 7 days a week with a presence in a global market with a high level of liquidity.
• Tokens and blockchain technology saves valuable time, money and eliminates third-party intermediaries.
• Tokenization, that is, the translation of traditional shares into tokens, is considered the future in the financial markets.
• It will be easier for you to find about a dozen investors for your project who will contribute to the amount you need than to look for one investor who will cover all the costs.
• If you are an investor, the advantage of tokenization is that the risk is spread over different investments, because here you can invest small amounts in different projects.

So, we examined what tokenization is, how and where to carry it out. Knowing the details, now the choice between becoming an effective investor or a person who benefits from such an investment is entirely yours.