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From the snail to the token


The future of assets is digital!

Today, assets are broken down into the smallest units, the token, via blockchain. What is partly perceived as a threat actually offers new opportunities, because history shows that money has always been subject to beneficial change. This is thousands of years old and begins long before the actual invention of money. Since each village has a different “currency of exchange”, at some point the shell of a special snail became the cross-local means of payment. The shell of these cowries was thus considered valid commodity money in parts of Asia, Africa, and on some South Sea islands until the middle of the 20th century.
But also, this means of payment had disadvantages, e.g., in transport, stability, handling, and size. More than 2700 years ago, coins were invited, and later paper money. Currencies that today have different names in each country are traded on an exchange and regulated by authorities.
The most recent developments are more abstract and so today entire assets, are broken down into the smallest units, the so-called token as a digital token, and traded. The process of tokenization, or fragmentation, takes place through blockchain technology. This digitalizes assets and makes them virtually tradable. But how does it work? This much can be said: in contracts to the crowdie snail, the token based on blockchain technology allows real goods and services to be linked to the digital world.
Blockchain technology – tamper-proof, efficient, and cost-saving.
Of all types of tokens, a security token, for example, has a specific, fixed value with associated rights and obligations to the initial asset and is defined by a contract, a smart contract. For this to be possible at all, a sophisticated technical prerequisite, blockchain technology, is required. With the help of this “blockchain”, the transaction data is sorted on different computers and is thus decentralized, unchangeable, and anonymous. It is virtually impossible to manipulate this data, which is why blockchain technology is considered to be a secure transaction. The advantages are obvious.
Blockchain technology eliminates the need for banks and payment processors, which saves costs. In addition, the system is extremely fast and efficient. For these reasons, the German government has also published a blockchain strategy for this purpose to exploit the opportunity offered by blockchain technology and mobilize its potential for digital transformation.
How can blockchain technology be used in the financial industry?
This is an important signal for the financial sector – and an opportunity both for local companies looking for suitable non-bank financing and for private investors, who are offered a way to invest in company projects that were only available to institutional investors in the past.
Platforms and issuers offering financial market products have to comply with a large number of guidelines and a lot of educational work needs to be done. However, it can be said that Germany is very open to the topic of tokenization. Just as people back then could probably hardly imagine at first the unifying economic benefits a snail shell could have, today we have to learn that digital chaining will completely turn previously common practices upside down and fundamentally change entire industries.
Follow us to learn how both businesses and individual investors can benefit from the changes brought about by tokenization, and the importance of a smart contract in the process. For more information on our tokenization offerings and on our SMARTeFunding@Solutions processes based on our SMARTeFunding@Software-as-a-Service (SaaS) software solution, please visit our homepage.

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