Mike Kessler, CEO & Founder at Tokenise.io, for The Fintech Times.
In this new and emerging tokenised world, what we previously took for granted in the ‘normal’ economy and society is changing. Where we used to rely on banks and large corporations, this is now moving over to trustless environments on the blockchain.
The reality is, much of the tokenisation of the ecosystem is already in place, but we don’t necessarily see it that way. When using a medical prescription, there are certain criteria you have to meet, certain payments have to be made, and you can only utilise it for a single purpose. This, in essence is very similar to a smart contract, you have to meet certain criteria before the medication is dispensed. Tokenisation works in much the same way, however previously there were less rules governing that relationship. As in the prescription, the tokenisation of society and the economy can place certain rules on a transaction before they occur.
Much of this already exists, in order to pay with a debit card you need a bank account and they have already done the KYC and background checks. When you choose to use that method of payment, you are effectively using a contract. Tokenisation takes this to a whole new level, by creating more order in those contracts.
The economy, and society in general, can benefit from tokenising a number of industries. The blockchain and its use cases are numerous, but not everything can be tracked on the blockchain and nor should it. I do see a future cheap levitra professional where a child is born and its details; DOB, sex, weight, blood type, parents etc are all recorded on the child’s new personal ledger. As the child progresses through life more data is recorded on the ledger, e.g. their education, achievements, school reports, university degrees, working history, sickness and absence etc. All this information recorded on an immutable ledger. I even believe the houses and accommodation they rent or buy will be tokenised in the future.
As for corporates, they need to embrace the change that is heading in their direction. Data is going to be the new fuel that drives the economy. The collation and use of that data will need to be carefully permissioned in order to ensure it does not fall into the wrong hands, and with the advent of GDPR corporates are naturally wary. However, there are significant benefits to tokenisation in the corporate sector, it can be used to reward all stakeholders, trade their own stock in a private secondary market, and give people the ability to trade tokens for services or products, make donations, or just give people access to specific things. Amazon is a prime example of an organisation that will be tokenised in the near future.
Tokenisation really isn’t anything new, but the use cases and how it is deployed is and this will disrupt society and corporates for the better.