Tokenisation biz to touch $5.6 bn by 2025

CHENNAI: Tokenisation is the future and no longer just a trendy term; rather, it is a phenomenon that requires further understanding.

For the modern tech industry, seeing blockchain technology for the first time was rather unsettling. Since practically everyone on earth is curious to learn more about the cutting-edge technology, blockchain has become increasingly popular in a variety of industries. The understanding and application of tokenisation have altered as a result of blockchain, just like many other industries it has already revolutionised. With the potential to represent actual assets as virtual assets, it has developed into one of the most promising tools for internet trade.

Blockchain already has the benefit of decentralisation. Bureaucracy, manipulation, convoluted processes, ill-informed decision-making, and unequal benefit distribution are symptoms of excessive centralisation brought on by the federal government, states, and huge enterprises. Any process could benefit from decentralisation by being optimised, which would level the playing field for the chain of intermediaries. Security token offers, or STOs, were one of the first ideas for tokenisation in the blockchain.

If we look around, the surge in worldwide tokenisation business has been showing may have a significant effect on the global economy. The tokenisation industry is anticipated to increase from $2.3 billion in 2021 to $5.6 billion by 2025, with an average yearly growth rate of 19% (Markets & Markets). Tokenised real estate assets are expected to touch $20 trillion, trade finance - $12 trillion and securities financing $42 trillion by 2030. Staggering!

Ownership rights to assets, like real estate, works of art, contracts and other assets, can now represented by tokenised assets resulting in easier investor registration processes and a lower entry barrier to the financial markets and therefore providing significant opportunities for the development of a securities market without the need for a stock exchange. Even the process for recording ownership along with other aspects of transactions is simplified with the use of tokenisation. Tokenisation can safeguard both traded and non-traded assets by using blockchain. Not to mention, enhanced liquidity, quicker settlement times, lower costs, and increased risk management!

Other major advantages of tokenising physical assets are security as when a token is created, blockchain generates a unique address, ensuring strong data protection through access control, automatic rights transfer and remote decentralised file storage. It further enhances efficiency as it reduces transaction time by allowing 24x7 trading and triggering smart contracts based on predefined parameters. With these smart contracts, assets can be sold or purchased anywhere at any time without a physical presence.

Three private equity firms, KKR, Apollo, and Hamilton Lane, have already created tokenised versions of their funds on websites like Securitize, Provenance Blockchain, and ADDX.

Since 2001, tokenisation has advanced opening up new potential in a variety of tech fields. It has a wide range of potential applications nowadays since technology advances transparency, immutability, and security. Its applications are limitless with further development and integration with other cutting-edge technologies like AI and IoT. Tokenisation offers enough room for countless opportunities across numerous industries. Nonetheless, as it’s a novel idea, it could use some improvement. For instance, tightening legislative restrictions on tokenisation may contribute to greater public confidence in the technology. But it is here now and here to stay!

Polygon now 2nd largest Blockchain gaming network

Demand for Ethereum’s layer-2 scalability solution Polygon continues to surge as the second biggest blockchain gaming network going by the number of unique active wallets (UAWs) in March. The number of UAWs playing games on Polygon rose by 53% from February to March with 138,081, as per the ‘Blockchain Games Report’ issued by the decentralised application (DApp) analytics platform DappRadar.

Compared to third and fourth-placed Hive (84,000 UAWs) and BNB Chain (80,000 UAWs), Polygon is now way ahead. At 314,000 UAWs, Wax is the clear leader with a wide margin. “Polygon, a blockchain previously known for DeFi DApps, overtook Hive this month and secured the second spot. This is a positive sign for Polygon, as it is now gaining recognition as a gaming blockchain,” the report said.