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Breaking News, Business, Politics, Technology Saturday, June 30, 2018
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Tokenization is the process of assigning a token as a unit of value for the specific asset it represents. In the blockchain and cryptocurrency spaces, a token is a computing protocol for assigning a digital token to represent an asset so it can be used as a medium for value exchange in a network.

Though these spaces are relatively nascent industries, tokenization is not a new concept. In a sense, the U.S. dollar is an analog, generic, traditional asset token: It is considered legal tender for all public and private debts, is backed by the government, and like other fiat currencies, it represents a unit of value that people agree upon. If you were to tokenize the dollar on a blockchain, it would be worth about a dollar.

As recently as 1950, there were thousands of functioning forms of tokenized currency in the U.S. alone. Individual banks issued parallel banknotes, while industrial and agricultural trading companies would write their own “scrip” to streamline transactions with suppliers and buyers. Additionally, local and state governments, retailers, and property brokers offered alternate forms of currency for trade, often because the supply of actual government-issued currency was quite scarce or illiquid.

Even now, we use utility tokens for everyday services like car washes, laundromats, and arcades. We buy flights using airline loyalty points, gamble with casino chips, and trade in various gift cards. In this sense, tokenization doesn’t seem like a new concept.

Tokenization has become a hot topic largely due to the recent phenomenon of Initial Coin Offerings, or , which can also be called Token Generation Events, or TGEs. Whether it is called an ICO or TGE, a company will issue a new cryptocurrency, digital coin or token that investors can purchase as an investment in the company. Consequently, the company can raise millions of dollars in capital without using the conventional VC funding model. It is no wonder that in the last three years, we have gone from just a handful of known cryptocurrencies to Mehem studded earring Metallic 6TNdLAD

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