Following the success of Bitcoin, many crypto-currencies currency electronic have seen the light of day (Litecoin, Feathercoin, etc). With the advent of cryptos gender Ethereum, the chain of blocks has significantly expanded its fields of application, become almost infinite. As was brilliantly explained by the chairman of the CFTC during his testimony to the u.s. Senate, the records distributed have the potential to revolutionize the economy. This could lead to its “tokénisation” (which is not in the dictionary… for the time being).
A token or token, what is it ?
Unlike a crypto-currency type Bitcoin, a token does not have the primary vocation to be a medium of exchange, even if it can take on the role. When this is the case, it is in theory in a closed environment. We can compare a token to the tokens that are used to operate a self-bumper car on a funfair. The token has a value, but it is only useful on the carousel that uses it. You can also compare it to the money issued by the amusement parks, which is only accepted in the shop of the said park.
The token may merely contain information and have no value. For example, if it is used to contain identity data. A few examples of the use of such a chain of blocks : a property registry, a national registry, etc
The benefits of the tokénisation
The chain of blocks, either in the framework of exchanges of values, or information, has many advantages compared to conventional solutions. Namely :
- transparency :
- the immutability of the data ;
- the low cost of deployment of a registry distributed ;
- the integrity of the data ;
- open-source : no need to reinvent the wheel each time the wheel.
In a world in which the cloud is a phenomenon that is unstoppable, we are increasingly faced with the risk of piracy. The records distributed, even if they do not eliminate this risk, can at least guarantee the integrity of the data. The protection of its private keys with devices such as the Ledger Nano S make up in this chains of blocks inviolable.
These 5 simple features offer to the tokens an advantage to crushing on other methods of information management. Add to that the functionality of the intelligent contracts (smart contracts) and we get the opportunity to tokéniser almost all the processes of financial, administrative, etc
Start-up – Source Pixabay
The reasons for the success of the chips ERC-20
Most of the ICO that see the light of day at this time emit tokens ERC-20. Is it crypto-currencies ? Not really, these are tokens that allow access to some services, which were sometimes similar to a title that offers dividends, etc., FinTech, and the sector of the start-ups in general, is in the process of migrating to the chain of blocks. Why ? Thanks to the tokens ERC-20, the entrepreneurs who have ideas can easily finance. In addition to business angels who invest in crypto-currencies, they can also affect small individuals active in the labour market. In short, the process of crowdfunding is greatly facilitated by the tokens, so this choice has to be made. The identification of the holders is simple, we may as well give them their rights (voting rights, rights to payment, etc).
The versatility of the chips, which can lead to behaviour very varied thanks to smart contracts, which also explains their success. They may take the form of the equivalent of one share of the ETF, an action, an obligation, a rental agreement… A token may also represent a title of ownership on tangible assets. For example, a token may represent one ounce of gold stored away in a safety deposit regularly audited. Such a system allows you to own gold without having to undergo the stresses created by the possession of the physical asset. The purchase and sale are much more easily. There is a criticism sometimes with reason, the ecological footprint of crypto-currencies. But between moving to a dealer of precious metals to purchase or sell gold and make a transaction on the network Ethereum, no need to do complex calculations to determine that the second option is more environmentally friendly.
The tokénisation, the next step in the dematerialization ?
In my opinion it is inevitable. While the process of migration to the registers distributed has already started for the sectors that are most familiar with the technology, the natural advantages of tokens are expected to push businesses and public services to migrate to the registers distributed. After the start-up and FinTech, I think it is the traditional financial system that will embrace the system of the chips. All financial assets (stocks, bonds, etc) will be converted to tokens.
The dematerialization of administrative procedures is a project that is already moving in France (driving licence, grey card, etc). Eventually, all the data from these securities should be tokenisées. Most need you to walk with a registration certificate, can be checked instantly on the string blocks. The electronic vote, which was to weigh fears of manipulation of the ballots, may be deployed in a way that is transparent, anonymous, safe and economic.
This phenomenon totally escaped the detractors of the crypto-currencies that focus so obsessively on Bitcoin. The Internet has also developed in the 90s in a skepticism. The cryptos should see a path at least similar in terms of impact on our lives. If there are concerns of scalability in this moment, I think they will be solved with the solutions of type EOS, DAG, etc, the Internet was also limited at that time by an emerging technology (simple HTML and limited bandwidth). You know the rest.