Tokenizing Digital Assets

Asset tokenization or tokenizing assets in the future will be a major part of the capital market.
By tokenizing your assets using blockchain technology, you can convert any asset you possess into securities. Converting assets into digital tokens creates opportunities for investors in the forthcoming capital markets.

If you are seeking to tokenize your assets, DigiAlpha is the best place you are looking for.

What does asset tokenization mean?

In response to the question, “What is tokenization?”, it must be said:
Asset tokenization means converting physical and tradable assets into digital tokens that can be bought, sold, and invested within the blockchain ecosystem.

Holding a token that represents an asset signifies ownership of that asset or reflects its intended value, such as revenue, shares, or profits. This ownership is transferable on the blockchain. Asset tokenization enables the division of ownership among multiple parties.

Continue reading to explore more about this platform’s unique functionalities.

Benefits of Asset Tokenization

• Opportunity of acquiring fractional ownership of assets
• Extremely low financial transaction costs
• Absence of tax expenses
• Ability to tokenize all types of assets
• Possibility of buying and selling tokens on cryptocurrency exchanges
• Potential for extensive fundraising
• Platform for reaching new customers
• Direct management of assets
• Secure and transparent ownership of assets through encrypted keys on the Blockchain
• Ability to preserve the value of digital assets
• Potential for earning income and profitability
• Reduced ownership costs
• Increased liquidity
• Access to markets and customers worldwide without border limitations
• Reduced transfer costs within a legal framework
• Increased transparency
• Possibility of immediate purchase and settlement
• Enhanced security

How Does Tokenization Enhance Liquidity?

The process of buying and selling illiquid assets, such as real estate, land, and artworks, is typically expensive and time-consuming. Tokenization of assets addresses this by dividing large assets into smaller, transferable units, effectively converting them into smaller, more liquid financial instruments. This plays a crucial role in boosting liquidity and facilitating easier trading of these assets. These tokens are generally designed to be bought and sold on various marketplaces, including online cryptocurrency exchanges.

What Role Do Smart Contracts Play in Asset Tokenization?

Smart contracts are fundamental to tokenization. They serve as the foundational framework that defines contractual elements, including ownership status, the token issuer, token value, rules for transfer and usage, and the issuer’s access rights concerning the token. Think of smart contracts as digital counterparts to traditional physical contracts, but with a key advantage: they eliminate the potential for disputes and differing interpretations of contract terms, as all rules are executed automatically and without ambiguity.

How to Generate Income from Tokens?

ICO (Initial Coin Offering): Individuals and companies can use ICOs to raise capital for their ideas or to establish new businesses. Each token represents your share in the project. In this method, future profits of ideas are distributed based on tokens, and the income generated is used for system development. Typically, 15-30% of the shares of ideas are transferred to interested investors through ICOs, and the rest is retained by the development team.

STO (Security Token Offering): The next method is STO or security tokens. This method is similar to ICO. The only difference is that in STO, we comply with the legal and formal regulations of the country. This is why it is more attractive to large companies seeking funding. The processes of this method are very similar to the stock exchange. Therefore, in terms of investment security, it is stronger than the ICO method.

TOA (Tokenize of Asset): Buying and selling certain assets such as real estate, land, artwork, etc., which have high value and are difficult to transfer, is a challenging task. Using this method, individuals can divide these types of assets into fractional assets and offer them to small investors. In this way, individuals can invest with as little as one million to purchase a portion of the desired asset.

DEFI: DeFi token is a token that represents individuals’ ownership in blockchain-based financial systems. Blockchain-based financial systems are responsible for deposit-taking, lending, or any type of financial activity conducted through crypto. The purpose of DeFi tokens is to raise capital for these types of projects and to represent individuals’ ownership in these systems and their right to vote on related decisions.

Tokenizing Digital Assets is a Profitable Investment!

In simpler terms, the concept of tokenization means that by converting your physical and real-world assets such as land, property, gold, artworks, etc., into digital tokens, you can both preserve your asset and secure the capital you need. For example, if you own a property worth 200 thousand dollars and, on the other hand, need to raise capital worth 100 thousand dollars, instead of selling your property to secure capital, you can divide this property into 200 tokens, each worth one thousand dollars, and sell 100 tokens on the blockchain. In this way, you will have obtained the necessary capital and retained your ownership. Conversely, this is also attractive to investors and buyers of your tokens, because, for instance, with 10 thousand dollars, they can invest in a portion of your property.

What Real-World Assets Can Be Tokenized?

• Bonds
• Intellectual Property
• Royalties and Exploitation Rights
• Real Estate
• Revenues and Profits of the project
• Fine Arts
• Commodities
• Stocks
• Collectibles

Types of Asset Tokenization Standards

Various standards exist for tokenizing assets, and the selection depends on your specific needs. To provide a clearer understanding, we introduce three common standards:

ERC20: This is the most popular and common method for implementing tokens and smart contracts. Tokens of this standard are interchangeable, and their intrinsic value is the same. Tokens like Tether and Pax Gold fall into this category. This means that 1 Tether is always equivalent to one dollar in any network and any address and is no different from other Tethers.

ERC721: This standard marks the beginning of the world of NFTs on the Blockchain. This token is for creating smart contracts or, in other words, tokens that represent your ownership of various assets such as artwork, collectibles, or real-world assets like property deeds. In this standard, there is a significant difference between the intrinsic value of each token and another token.

ERC1404: This standard is like a plugin (extension) for ERC20. Their purpose is to create more security and specific rules in token processes. For example, it determines that tokens should only be sent to specific addresses in particular locations.

Why Do We Claim to Be the Best?

We have comprehensive experience in blockchain design and FinTech, executing large-scale projects like digital asset platforms, CEX, DApps, and smart contracts.
In tokenizing digital assets, we aim to create lasting value for our clients, not just implement smart contracts. Our projects in the blockchain ecosystem are invaluable, and we invest time in R&D on Smart Contracts and diverse blockchain businesses, sharing this expertise to help launch our clients’ ventures.

Tokenizing assets involves more than just executing smart contracts; we offer strategic support for your businesses. Our services include professional smart contract programming, revenue generation models, business design and consultation, marketing consultation, and more.

If you want to start an innovative and profitable business, we can be your ideal partner.

Why Do We do for you?

Phase One

Blockchain Token Creation & Smart Contract Development: This includes the fundamental technical groundwork, establishing the digital token on a Blockchain and developing the necessary smart contracts to govern its functionality.
White Paper Creation: Defining the purpose and identity of the token by creating a comprehensive White Paper. This document serves as a blueprint, outlining the token’s goals, technology, and roadmap for potential investors and users.
Wallet Development + Registration & Authentication (If Required): Developing a dedicated, proprietary wallet solution to enable users to register, securely authenticate, manage, send, receive, and trade the Token. This step is contingent upon the project’s needs; if not pursued, the focus shifts to integrating with existing wallets.
Wallet Registry (Trust Wallet) or Other Blockchain Wallets: Ensuring token compatibility and accessibility by registering the token with reputable international wallets like Trust Wallet or other established blockchain wallets, thereby broadening user access.
Token Contract on DEX Systems: Deploying the token’s smart contract onto Decentralized Exchange (DEX) systems. This makes the token tradable in a decentralized and permissionless environment.
Main Website Development: Designing and developing a professional main website. This serves as the central hub for information, updates, and community engagement related to the token and project.
Initial Token Offering (STO/ICO): Launching the token through an Initial Security Token Offering (STO) or Initial Coin Offering (ICO) to raise capital and distribute tokens to early adopters.

Phase Two

OTC Exchange Development: Designing a dedicated Over-The-Counter (OTC) Exchange platform. This facilitates direct, centralized trading between the project and its users, particularly beneficial for larger transactions.
DEX Development: Developing a proprietary Decentralized Exchange (DEX) platform. This offers a fully decentralized trading environment, enhancing security and user control.
P2P & CEX Development with IEO Panel: Designing a CEX Exchange platform that allows users to trade tokens directly with each other in a peer-to-peer manner or spot trading panel. This phase also includes developing an Initial Exchange Offering (IEO) panel to facilitate token launches directly on the platform.
DEX Listing & IDO: Registering and listing the token on existing Decentralized Exchanges (DEXs) and conducting Initial DEX Offerings (IDOs) to further expand token accessibility and liquidity within the decentralized finance ecosystem.
Exchange Registration and Listing (International) with IEO Panel: Registering and listing the token on prominent international cryptocurrency exchanges (likely centralized exchanges) to achieve global market presence and increase trading volume. This step may also include an integrated IEO panel for launching future token offerings on these larger platforms.

Technical Information and Details Required for ERC20 Token Development

For developing a new token, it is essential to specify the following technical details precisely. This information helps in understanding the token’s functionality, features, and security, and is highly important for developers and investors:

1. Basic Token Specifications:

• Total Token Supply:
o The total number of tokens that will be created.
• Initial Token Supply:
o The number of tokens that will be available upon creation.
• Maximum Token Supply:
o The maximum number of tokens that can ever be created.
• Token Name:
o A unique identifier for the token.
• Token Symbol:
o A unique symbol for the token (typically 3-5 characters).
• Decimals:
o The number of decimal places the token is divisible to.

2. Burn and Inflation Control Features:

• Burnable:
o Specify if the token can be manually burned to reduce supply and inflation.
• Inflation Reduction Mechanism:
o Detail if the token supply decreases over time, often through a burn fee on each transaction. Indicate if the token owner can exempt accounts from this mechanism.

3. Tax and Revenue Mechanisms:

• Taxable:
o Define if a tax fee is added to transactions. Explain if this fee is automatically sent to a predetermined address per transaction and whether the token owner can exempt accounts from taxation.

4. Token Creation and Supply Management:

• Mintable:
o Specify if the token owner or authorized accounts can mint new tokens, up to the maximum supply.
• Initial Supply Type:
o Indicate whether the initial supply is fixed, uncapped, capped, or another defined type.

5. Security and User Protection Features:

• Anti-Whale Protection:
o Determine if users are restricted from holding more than a certain percentage of the total token supply. Clarify if the token owner can modify or disable this percentage and exempt accounts from this protection.
• Token Recovery:
o State if the contract owner can recover any ERC20 tokens sent to the contract by mistake.

6. Liquidity Provisioning:

• Liquidity Pool Launch:
o Specify if a liquidity pool pair will be automatically created on Uniswap. Clarify if the token owner can set the initial liquidity amount and choose to lock LP tokens in the contract or receive them in their wallet.

7. Access Control and Permissions:

• Access Type:
o Define the access control model: No Access Control (open), Permissioned (access granting required), or Role-Based Access Control.
• Transfer Type:
o Specify if token transfers can be paused or halted under certain conditions by the contract owner.

8. Compliance and Standards:

• ERC1363 Compatibility:
o State if the token implements ERC1363, an extension of ERC20 that enables notifying token recipients or approvers upon token transfer or approval.
• Standards Compliance:
o Ensure adherence to ERC20 standard and relevant regulations for compatibility, security, and broader acceptance.
• Mandatory Functions:
o Confirm implementation of the six mandatory ERC20 functions: totalSupply(), balanceOf(address account), transfer(address recipient, uint256 amount), allowance(address owner, address spender), approve(address spender, uint256 amount), and transferFrom(address sender, address recipient, uint256 amount).

9. Transparency and Verification:

• Verified Source Code:
o Indicate if the token source code will be automatically verified on Etherscan. Explain that source code verification confirms the published contract code matches the bytecode deployed on the blockchain, crucial for security and trust.
10. User Interface and Experience:
• Design and UI:
o Consider the design and user interface for the token, particularly if a dedicated platform is planned for token management.
11. Post-Development Support:
• Post-Development Support:
o Plan for ongoing updates, bug fixes, and upgrades to enhance token longevity and user satisfaction.
• Gas Cost Calculation:
o Acknowledge that ERC token transactions require $ETH gas fees and optimize the smart contract to minimize these costs. This also applies to other networks as well using their main coin. (like $BNB for BSC network or $TRX for Tron)
• Security Audits:
o Commit to security audits to ensure token security and minimize vulnerabilities.
• Copyright Removal:
o Option to remove links pointing to the token contract creation page for greater customization.