The right provides the owner with an individually suited digital representation of their asset.
They are all represented through the token on the blockchain based system. Here, the respective token literally acts as a container inheriting a vast amount of different (usually pre-existing) rights. The “Token Container Model” explainedīut how are these entities now actually tokenized? Well, to answer that, we have to dig deeper into the so called Token Container Model (TCM). The rights of certain tokens can even be divided and allocated to several different “sub-tokens” under the umbrella of the original token, consequently providing far more flexibility than traditional assets and rights like securities. The rights embedded into the token will never change, but can be adjusted or transferred. Moreover, the token’s private key can be delegated to a representative, therefore boosting security, who acts on behalf of the actual owner.Īlso copies of the key can be made, enabling owners with the authority of disposition, but not the right.
Thus, they can be a major driver in the development and adoption of Internet of Things (IoT). Generally, token transfers make unnecessary paperwork become obsolete and can not only be attributed to a person, but also to machines and intellectual property for instance.
Hence, an ownership transfer in the tokenomy will simultaneously also be an ownership transfer in the real world. Legally verified transfer of rightsįurthermore, smart contracts enable the legally verified transfer of rights embodied in the form of tokens. At the arrival of the goods, they are registered and consequently an automated payment takes place through tokens representing the equivalent of the goods in a fiat currency (e.g.