⛓️Tokenization Process

Simplified explanation of tokenization for newcomers to crypto

We were talking a lot about tokenization during this whole document, but what is it?

Real World Assets Tokenization is a process which is transferring ownership rights of the physical asset from real world to blockchain.

There are several ways of tokenization, including using assets just as collaterals. But we more interested in tokenization of real-world businesses. We are making it with our Tokenized Promise.

Digitization — missed revolution

Generally talking, tokenizing business is not just about tokenization. Most of the businesses are really missed Web2.0 and didn't digitize them well. When you don't digitize your business, you are losing information because you don't have enough metrics and processing power to analyze them. It's really overwhelmed for businesses to find the best solutions for data processing, so they try, fail with vendors, and just stop any activities in this field.

What happens if you correctly digitize your business? You can predict and know the behavior of your customers and suggest them the best goods and services that you have.

In 2012 Target (retailer in the US, stores, supermarkets) sent a special coupon to teen girl because their algorithms recogznied that she is pregnant. Before the girl herself realized it. Read this insane story of importance of digitization at NYTimes.

The better information one has, the more one will be able to control events.

Sir Francis Bacon

VERV's tokenization process is inextricably linked to the digitization process. DAO is putting metrics and setting KPIs for all ventures to determine their success in the future and to analyze the big picture with patterns. We want to know how many products the business will produce, import, export, their balances, customers count, employees count, and other information that will help us to improve this business with technologies. The more we know, the more will be the output.

Digitization enables successful tokenization by making data accessible for analysis and immutable blockchain integration, facilitating reliable third-party interactions.

Back to the Tokenization

The most known cases that you are using daily is a stablecoin — USDT, USDC, and plenty of others. In most cases, they have some verified reserves that are approved by a 3rd party auditing company. And based on these reserves, they can mint the same number of tokens. In theory, any holder of the USDT token can claim his paper dollar from Tether's reserve.

Let's say Tether get $100 in cash that is not tokenized yet. They are putting them in a safe and minting same amount of tokens in one or more blockchain networks (for instance, they might issue $30 for TON, $30 for ERC-20, and $40 for TRC-20). When client is purchasing tea in Mongolia with USDT, both parties just need to have a smartphone and to be basically familiar with crypto (same amount of knowledge you need to use bank cards or for driving a car — you don't need to understand the whole processes under the hood to be able to get benefits from the process). This USDT refers to the very same paper USD that remains securely stored thousands of kilometers away from the transaction site

1 paper USD -> power for Tether to mint a USDT -> 1 USDT is now live on-chain -> Paper dollar claim request -> burn USDT -> release paper dollar

Once tokenized, you are not bound to that paper bill in the safe located in Tether's HQ. You can pay the bill in Mongolia for a cup of traditional milk tea. Just mobile internet, just a smartphone to pay.

Tokenization of currency is not a big deal, but what else we can tokenize?

Absolutely everything. From US Treasury Bonds up to profit from the vending machines. Any asset from the real world, eventually, will be tokenized and present in the blockchain. Why?

Let's check some real-world examples:

Mike lives in Prague — beautiful city in the heart of the Europe. Just under his windows there is a florist shop with high demand. He is looking to the line that are always in front of this shop. So after talking with the owner, he decides to propose a new project for Venture Builder.

Carefully filled the application. Once team validated the application and contacted business owner, they signed a tokenization agreement. The whole process took couple of days.

And now Mike owns a share in this store. Finally he can buy flowers to his girlfriend with direct delivery to the apartment, on weekly basis, and on a full autopilot. And guess what? He is paying for them from profit he realized from his share.

Florist make his family business a little bigger — neighbors, regular customers, and business partners can now easily make a brainstorm on common problems and find best solutions. Because family is now bigger.

Annual report showed that his profit increased by 140%.

Thanks, Mike!