Tokenisation of Assets — Defining the Dynamics of Tangibility
Tokenisation is often defined as the process of issuing a digital representation of a unique asset on a blockchain network. A blockchain network is just considered just as a distirbuted ledger where the digital representation of the asset can be recorded in transparent, flexible and formal terms. The story does not end there. The story does not begin there either! Tangibility of tokens need to be estalished throug economic means.
It is important to understand that tokenisation of assets is a prelude to the trajectory of distributed and decentralized finance. When we look at the toplogy of financial networks, distribution and decentralisation of assets demands advanced levels of liquidity and logic embedded in the lattice of assets. The origin of assets, the original value of assets, the state changes in the asset value, the number of stakeholders, the circulation mechanisms, the re-circulation mechanisms, the valuation mechanisms, the value exchange mechanisms etc. need to be defined on-chain. We can see that in many token engineering protocols, these attributes are defined off-chain!
Tokenisation of assets in a decentralised and dynamic economy is not simple as recording the tangible properties on a transparent and trustless ledger. When you emabrk on linking the tangible representation of an asset, it is…
