Capabilities of Blockchain Technology in Tokenization of Economy

Abstract

One of the leading technologies nowadays, which is extremely helpful for the tokenization process is Blockchain. Combining Blockchain technology with the tokenization process creates a digital economy based on values rather than speculative demand. Therefore, we can say that tokenization leads us to a new era of global investment with minimal risks and high volatility. Tokens, which are specific objects that reflect the real values (such as money, stocks, credit card numbers, medical records, etc.), provide new investment opportunities and open up new areas for investment and trading. However, no single token classification system has yet been introduced that would help to clearly differentiate the functionality of each type of token for further use in different areas. The leading by popularity division of all crypto assets can be described within the three main groups: Payment, Utility, and Security tokens. This article offers a more detailed review of each of these groups and highlights the features of each of them.