Blockchain Tokenization for Business Enterprises
Blockchain has become a very useful technology over the past few years after inceptio. However, most of the popularity of Blockchain has been revolving around Cryptocurrencies. There are many ways through which Blockchain Technology can be used in businesses across industries. If you are still wondering what Blockchain is, let me not ignore you. Blockchain is a distributed ledger technology that decentralizes authority in transactions thus enhancing trust in businesses. The technology makes it possible to attain Trust in transactions without reliance on the intermediaries. Now that you have understood what Blockchain is, let us look at ways through which Blockchain tokenization can be possible in business.
Many people were part of the company stock waves and crazes that swept the world at the onset of the internet age. People wanted to acquire stocks of internet companies such as Google, Facebook, Apple, Alibaba, Microsoft and Amazon. We are now in a similar era where a different technology is troubling the waters of investment trends and remodelling traditional business models. Global investors are shifting focus to digital assets and through technologies such as Blockchain, traditional business ventures are digitizing their assets, products and services thus making it possible to trade fractions of their assets and create more value through digitized services. Let’s look at a few examples of how traditional businesses can use tokenization: a real-estate agency can tokenize a 20-floor apartment flat thus making it possible for investors to buy small fractions of the building and even sell. Digital assets are more liquid, which means that if I buy 5% of the apartment flat and three months later I need my money back I can sell part or all of my stake and recover cash.
In service industry, tokenization is very interesting. You can tokenize your services so that you can track the amount of services consumed by individual customers and be able to reward customers with redeemable tokens. A good example is in hotel industry such as Betty’s Place Restaurant. I run the Betty’s Place Restaurant in Nyeri Town and we accept Cryptocurrencies as payment for services. If I tokenize my services, I can be able to reward my repeat customers with some tokens that they can then redeem for a meal of their choice when they want. If you are not getting my point, look at what Safaricom is doing with Bonga points in Kenya. Today Safaricom subscribers can redeem their accumulated Bonga points for shopping, a flight ticket, a phone, airtime and others. It’s the same concept, except that tokenization in Blockchain enjoys the distributed ledger platform of Blockchain that makes its more decentralized and gives the Token recipients more power to choose whatever they want to do with their tokens. You can find more resources online about tokens and continue the learning.
Betty’s Place Restaurant