The Tokenization Of Everything

1 yr
LeoFinance
6 Min Read
1224 words

Security. Access. Governance. NFTs.

Tokens are happening and there is nothing anyone can do to stop it. We are now entering the era where tokenization will be the norm.

In a couple years, it will be odd for an entity, and even individuals, not to have a token. It will be akin to a company not having a website today. If the answer is no, people will wonder what is wrong with that company.


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Tokenization is a process which will have tremendous impact upon the world. Presently, there is a battle raging between regulators in different countries (the SEC) and individuals who engage in this process. The former is still stuck under the old model whereby it decided who could securitize assets. Now, anyone can do it and that is something they do not like.

As we move deeper into the digital realm, the power of the nation-state will diminish. The reach of government agencies will lessen as technology pushes people more into the virtual realm.

The reason for this stems from the entire basis for the nation-states. These were set up to control humans and, more importantly, their production. It was a model that dominated in last few centuries in the physical world.

In the digital realm, things change greatly. Informational technology is what is the means of "production". This cannot be ruled by nation-states. Instead, it is the mecca of blockchain. That is what these data storage systems along with smart contract capabilities do.

While this will take a couple of decades to play out, the world will be moving in the direction of technological innovation, leaving the existing system holding their you know whats. This will open the door for tokenization to explode.

What is tokenization? The most powerful aspect to this is the idea of a new ownership model. It is similar to the securitization of a company, whereby the ownership is broken up into fractional units (called shares). At this level, tokenization is very similar.

The benefit to this is that it makes something that is typically non-liquid, and makes it a liquid asset. Shares can be traded rather quickly, inexpensively, and easily as compare to selling a company. As long as the exchange is open and there is any type of liquidity for that stock, one can move his or her ownership state in a few moments. Selling a company, or a piece of a company such as in a partnership agreement, takes months.


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Tokenization does not stop at companies. Instead, the concept can be applied to whatever anyone can conjure up. People have already tokenized (or attempted to) their earning potential. They sold pieces in their future earnings to willing investors who are up to accepting the risk. For some, like Spencer Dinwiddle, the risk was less since he had a guaranteed contract although the NBA shot the deal down.

What is interesting is that we are at the very early stages of innovation in this area. People have really not even begun to experiment fully with the capabilities of what is here.

Essentially, anything can be tokenized. People are tokenizing future events opening up a "futures" market of sorts which allows people to take one side or another as to what will happen in the future. Again, this was typically the mecca for Wall Street but we are seeing it open to most anyone with a few tokens.

The future is going to see the convergence of blockchain, AI, quantum computing and extended/mixed reality. This is where things will ultimately lead. As the Metaverse becomes a greater part of our lives, and the Internet takes on a 3D form, we will see the ability to tokenize as an everyday part of our lives.

Digital assets are the rage right now. There is good reason for this. Anything that is desired can hold value. The Internet taught us how valuable "virtual real estate" can be. For example, the url, Amazon.com, is worth billions of dollars to that company. It is really nothing but a bunch of characters on a screeen.

Mark Cuban recently sold a NFT of a Tweet he sent out for $900. The Shark Tank co-host is a notable name and someone felt the need to spend that money on a Tweet of his. The future value of this could go up or down; nevertheless, it was monetized and owned, at least for a brief period, by Cuban.

As an aside, what happens if Twitter decides to tokenize people's tweets claiming they own them? Perhaps another reason to own your material and not give it to a third party.


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Probably the most valuable aspect to this is the ability for groups to tokenize themselves. Whatever the reason for pulling people together, it can be tokenized. We like to say "tokenizing communities" but it carries a much larger concept. For example, imagine if those who are serious about cancer research were able to tokenize their activities. Not only would this allow for funding from individuals concerned with that, but also would provide a platform for economic activity to operate around this concept. Families of those affected could be tokenized for their support of others is just one idea. Ultimately, an entire market could expand, generating billions of dollars in value from the activities of all involved.

Few realize the true potential here. Real estate, alone, amounts to more than $200 trillion globally. Then we can add in collectables, securities, and intellectual property. After that, we get to the level of personalization, activities, and areas of interest. All can have their own token.

Ultimately, we see a system that is more inclusive as compared to what we have now. Wall Street and its allies do all they can to maintain a system of scarcity and exclusion. All activities are geared towards benefitting them first.

With cryptocurrency, the exact opposite is the case. Those who are doing the tokenizing, along with the early adopters, are the ones who benefit. Wall Street, due to its nature, enters at a later date. Over time, as things grow, they will become less of an influence.

Tokenization is one of the most powerful developments we have seen. It is going to be the foundation for an entirely new economic, financial, and ownership model. Anyone, who has a few tokens, no matter where on the planet, will be able to participate. As the abundance grows, those with stake in whatever their interest is, will grow. This is going to take on new meaning considering how different it is from what we presently know.

The present economic models, which we depended upon for centuries, are already starting to crack. While we do not know exactly how the replacement will look, we can see how tokenomics is going to be at the core of this. It only makes sense since we will be living, to a greater degree, in the digital world. There is no reason not to rely upon a financial system that was also created in that realm.

In short, get ready for everything you see before you to be tokenized. Over the next decade, we will see this become the norm.


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I think there will be a silent war against states in the next years. The tokenization of the economy and society will bring us more control and power, the one we hadn't before.

Whatever happens, I won't leave the crypto world and probably I will need to leave my country seeking freedom.

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1

not sure if it will be so silent...

1

I am not so sure it will be silent. There will be massive attention, at some point, to what is taking place.

In the meantime, while things are quiet, we just need to keep operating under the radar and building. That is the most important thing that can happen.

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2
1 yr (edited)

I ain't losing this wave of new opportunities. I'm planning on tokenizing local businesses in my community by using hive tools. This is a whole new market and I'm not going to see and wait how other people seize the chance. Regards boss!

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1

A little creativity and innovation can go a long way. The possibilities are endless and once someone comes up with an idea that works, others will follow. Rinse and repeat as they say.

Imagine hundreds of different breakthroughs with tokenization all happening one after the other. People will have dozens of opportunities before them each day.

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0
1 yr

Seems like Tokenizing Humanity would be a more accurate statement than tokenizing communities. I get what you are saying. It definitely feels like we are heading that way. The benefits are becoming more and more obvious each day.

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1

Humanity, to me, carries the connotation of all people on the planet. We are going to see breakdowns to all different levels. This will be individual, small groups, and global interests.

Nevertheless, it does add a completely new element to what individuals and groups can do. In the end, it should change things for all of the planet.

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1

blockchain to blockchain interaction will be critical in a tokenized world and I think we are already ahead of most people in this aspect on hive

1

That is true. Interoperability is a major step that needs to be taken. It is akin to when the first internet days required people to physically switch computers to get onto another network.

Seamless switching of blockchains and tokens through swapping is vital.

I agree that Hive seems to be making some strides in this area. We will see how far along it goes as compared to others.

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0

If there is a token that nobody has created and it is the one from the foragin world, I think it would be a good idea to create it, I know that there are many in the world who would be using it for advice on this hobby.
I do not know how the property is going to be in the future and in fact this is changing there is no reason not to believe it seeing large investment funds entering this world, especially with BTC in the lead, the rest of us are there with the rest of the token of utility.
Hopefully there are no keys to put any obstacle to the tokenization exchanges in this regard, such as having a custodian who gets a good slice just to verify that the token is delivered to a third party and the transfer is made, maybe that's where it goes BONY's recent entry into this world of custody.
But hey, that is something else, going back to tokenization, I think I have seen that Argentina has just tokenized the jungle, the Amazon jungle should be tokenized to protect or give a salary to those who live there to take care of it instead of looking for it. destroy it as it is happening right now that you believe is infinite.
Jaaaaaaaaa go twitter would have a lot of money for his twit and he has not seen it or maybe if he is right for that he will enter there.
200 Billion that nobody has seen in the real estate sector hopefully it reaches the moon with it and so we can benefit a lot from these new developments.
Hopefully they will pay the investigators how much they will earn, it should be that way instead of paying a soccer star so many millions for literally doing nothing but entertaining while the others build life and hardly get anything for it.
but well, we are here, we hope it will allow us in a few days or a few years to achieve our dreams and financial and monetary freedom.

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1

It isnt so much a token that nobody thought of, but rather the use case. People are going to be innovative about the use cases.

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0

I can recall a post you did on this probably over a year ago and thought maybe/maybe not and it is going to happen for sure now. Tokenization has no limits and there is going to be some really crazy stuff that we would never imagine being tokenized. This is going to be the way forward and can see myself wanting to invest in property this way.

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1

What is cool is we are going to, eventually, see the creativity of 7.5 billion people put to use. We have no clue where breakthrough ideas will come from. Someone in some third world country with a smartphone could have a tokenization idea that ends up spanning the world. We live in a copy/paste environment so a great idea will be replicated by many.

It only takes a few of this nature to truly revolutionize society.

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0

Very true and now is when we must have our brains switched on more than ever. Yours is permanently on these days lol.

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1

That is what happens when you live between 2025 and 2030. Rarely in today. LOL

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0

I don’t think it will happen quickly - most people are not ready for this: there will be a lot of fraud and bans. I think we will need at least 10 years.

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1

It could take a while, things tend not to happen overnight.

However, remember the smartphone was adopted rather quickly. The governments are going to try and slow things down but the more people, around the world, are suffering, the more they are apt to ignore what they are told.

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0
1 yr (edited)

Nice analysis, but nation states were not set up to control people's production.

Nation states arose by historical process because they are the smallest entity able to provide physical security (in a world of modern weapons) to vulnerable human biological bodies and especially because children need a lot of care and are vulnerable.

When weapons were just spears and stones a group of 3 or 4 families could defend themselves.

With the invention of swords, bows and arrows a tribe of 500 - 5000 was necessary.

With modern weapons a nation state capable of fielding a modern army is needed.
Tribes were subsumed (sometimes forcibly) into the nation state.

Decentralisation can do many things, but it cannot address this fundamental physical reality.

Governments can and should be limited back to essential functions, but unless we find a way to have a modern military on a decentralised basis, nation states will continue to exist.

1

That is all true but I think we need to point out that a greater amount of military focus is upon cryberwarfare.

As we proceed over the next few decades, it is likely that we will be merging with our technology, thus becoming even more digital ourselves. As that happens, the entire prospect of governance changes.

After all, even today we saw one of your favorites, Facebook, basically ban all news from Australia.

So the battle of government and Big Tech is already taking place. We will have to watch to see who wins this one.

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0

@taskmaster4450 what an awesome and intelligent writeup sir.....

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0

Hopefully Devs can create a more abundant user experience. Human nature always wants to revert back to the way things were. The legacy system is no exception. Casino finance and unsustainable debt can be avoided in the blockchain space. I always tell people to create something different. In short there are no rules...

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1

It sure does show a different way of doing things compared to the past. I think the best thing about tokenization is that people can invest their time and money directly into the community without going through banks. I only wonder how Intellectual Property and Copyright will work in this type of environment though. The original laws protecting them doesn't exactly have flexibility and it is very confusing when applied to tokenization.

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2

Those laws didnt really adapt to the digital world anyway. They simply do not fit in with is what is taking place.

We are more likely going to see the laws progress without change and the world around them make them obsolete.

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1

True, many of our laws are outdated but they have never been addressed. Congress is essentially useless at getting anything done and I don't see them fixing the issues anytime soon.

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0

Every time I think about the tokenization of things I see a sci-fi script in my mind.

Such a crazy thing, haha!

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0

Tokenization of everything! Who wants AmphluxCoin I got lots to give out!

0
1 yr

It's certainly exciting to see it all first hand as part of the movement that makes it all happen, though I suspect that governments will try really hard to suppress it before it finally breaks through, when the taxman accepts crypto as payment then we will have won.

0

What about when there is no payment of taxes, at least to the traditional entities?

Then we will have really won.

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2 mo

That happens when all public services are tokenized.

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