Tokenization phenomenon: the next real big thing?
Selling real assets can be not only complicated and time-consuming but also less secure. Blockchain technology allows for more efficient and cost-effective transactions. Asset tokenization on the blockchain is a novel and more secure way of trading.
According to the CEO of India’s most trusted crypto exchange platform, Nischal Shetty, considers tokens to transfer much better value of products to its users. Shetty wishes for more Indian companies to adopt tokenization as to his belief it is the best means to assure customer growth.
Tokenization refers to a blockchain-based digital system that operates by issuing digital tokens representing units of ownership. This process refers to the secure replacement of sensitive data with identification symbols that collects important information. Tokenization can be used in different technologies, such as mobile payments and contactless payment applications.
The tokenization process is also fairly convenient for users willing to make secure online purchases. Customers are not required to re-enter the account numbers while paying via a smartphone or a computer.
In fact, the Reserve Bank of India has recently issued guidelines for the tokenization of credit and debit card transactions that way giving the green light for the process of all payment services through in-app payment and cloud services.
Payment through tokens guarantees that no vendor will be able to keep the customer’s debit/credit card details. During a tokenized payment procedure, the customer’s bank generates an automated customer ID as a form of a token that will be used for all the transactions.
All in all, tokenization is the key to the revolution in asset trading and is believed to ultimately change the way people make payments, whilst encouraging them to choose digital payment methods.