Tokenization for small companies
If you have ever heard about digital tokens, so called NFTs, you must have wondered what kinds of opportunities there are for them beyond the hype the sales of some highly valued items has caused (see e.g. here) and if there are use cases beside the digital art.
NFTs are non-fungible tokens, digital certificates of ownership based on blockchain. NFTs are posed to uniquely identify ownership of an asset, often a digital one, and are currently revolutionizing art industry.
Digital art existed for years in an environment where it was nearly impossible to prove the ownership of the pieces. Digital artists knew that their art can be easily copied and spread by everyone and it was not a good investment to buy digital art. If so, then it could have been easily shared further with the original owner having nothing from its success and spread. Nothing even forbid author to sell the same piece multiple times which further decreased the willingness of art fans to invest.
Blockchain allows to prove the ownership and originality of an arts piece. The author issues a token which is linked to the art and writes it on blockchain. The token then represents the ownership of the art and author is free to sell the ownership of the original piece. The new owner now has a unique token with which he/she can prove they own the original piece and can resell it further not fearing the potential buyer will question its originality or their ownership of it. Even though countless copy paste copies exist, similarly to copies of paintings, there is only one original.
The use case goes beyond the digital art and art world. Basically anything that has value for fans and customers, is unique and hard to produce, but easy to replicate or counterfeit, can benefit from tokenization – issuing a digital token on blockchain network that allows to prove the originality and ownership of the item.
Costra Labs is working with companies to bring potential of the technology to small and medium enterprises with no technical knowledge of blockchain. See more at costralabs.com/homepage/services/tokenization or click here.