A big change for the markets is coming. And it is inevitable.
Disclaimer: This is NO financial advice. All content provided is for educational, entertainment and informational purposes only!
Blockchain technology was the missing piece to transfer certain traditional markets and trading systems into the digital age. Simply put, a token can be the digital form of an asset, or more precisely, the rights (of ownership) to an asset. It is theoretically possible to tokenize ANY asset. This is where the real paradigm shift happens. We can already see it in the art market with the boom of NFTs (Non-fungible tokens). They enable every artist, everywhere in the world, to offer their own creations on global, digital marketplaces like OpenSea. These tokens also make it possible to constantly earn a share of every further trade of the same work of art (= passive income). And they opened up completely new markets: Expensive assets like real estate and even rare, high-value works of art can now be offered to ordinary people with an average salary. This is possible because it is no longer necessary to own the assets as a whole. A large real estate property can be divided into small units (tokens). Just as company ownership can be divided into shares of stock. This will lead to the democratization of the art and real estate market. It also simplifies the process for both the seller and the buyer.
Furthermore, there are the advantages of the underlying blockchain technology, like speed, transparency, proof of ownership, and cost efficiency. No need for middlemen, high commissions, or complex, time-intensive written and verified contracts anymore. The tamper-proof blockchain and smart contracts leave no room for doubts about trades and ownership, avoiding subsequent court cases.
The only thing that can slow down this whole transformative process is the laws and regulations of different governments. But as history shows, revolutionary developments and technological progress cannot be stopped by politicians.
In summary (TL;DR): Tokens are revolutionizing traditional markets. In the future, nearly anyone will be able to sell and buy all kinds of assets or shares of highly expensive possessions. Online, secure, fast, at low cost, and without a third party involved.
Pingback: What Is Web3 and Why Is It Your Last Chance for Freedom? – eTatos.com
Pingback: What Is Web3 and Why Is It Your Last Chance for Freedom? – Dirk R. Bartz