Welcome to the world of tokenization! This comprehensive guide is designed to walk you through the concept of tokenization, its benefits, and a step-by-step process on how to start tokenizing your assets.
Understanding Tokenization
Tokenization is a process of creating digital representations of various assets on a blockchain. These assets can be physical, such as real estate or art, financial, such as stocks or bonds, or intangible, such as intellectual property or data. The assets are represented in the form of digital tokens that can be traded, verified, and secured on a decentralized network. Tokens can be fungible or non-fungible, depending on their design and function. Tokenization is part of Web3, which aims to make online space more open, transparent, and democratic [1].
The Benefits of Tokenization
- Increased Liquidity: Tokenization can turn traditionally illiquid assets into tradeable securities on the blockchain.
- Democratized Access: It lowers barriers to entry, allowing more people to invest in assets previously out of reach.
- Enhanced Security: Blockchain’s inherent security features protect against fraud and unauthorized transactions.
- Operational Efficiency: By eliminating intermediaries, tokenization streamlines the investment process.
How to start tokenizing: common steps
Tokenization is a multi-step process that involves several key stages. Here’s a step-by-step breakdown of common aspects that need to be considered during tokenization process:
- Asset Selection: Identify and select a suitable asset for tokenization, ensuring it has clear legal status and ownership rights.
- Legal Framework: Establish a legal framework for the tokenization, potentially including the creation of a prospectus and ensuring regulatory compliance. Make sure that all tokenization activities comply with the legal frameworks of your jurisdiction.
- Smart Contract Development: Develop a smart contract that will encode the terms of the token, including rights and obligations.
- Token Issuance: With the smart contract in place, issue your tokens on the platform, representing fractional ownership of your asset.
- Token Distribution: Distribute the tokens to investors, either through a private sale, public offering, or other distribution methods.
- Secondary Market: Facilitate trading of the tokens on secondary markets, providing liquidity and price discovery for investors.
Creating a Token using Cryptix Tokenlaunchpad
Platforms like Tokenlaunchpad by Cryptix greatly facilitate the process of token creation, allowing everybody to deploy a custom token without any special technical or coding skills. All you need to have is a browser wallet (e.g. Metamask) installed in your browser with some funds on it.
The Tokenlaunchpad web app also supports testnets which you can use for testing and demo purposes. If you need funds for a testnet, just search for ‘’Faucet” of the chain you want to use. To deploy the token via Tokenlaunchpad platform, follow these 4 simple steps:
- Choose the blockchain network that you want to use and click Connect.
- Pick the token type, opting for either a Generic ERC-20 token or an ERC-1400 security token.
- Provide the necessary details in the token parameters form.
- Initiate the deployment process and authenticate the transaction through Metamask by signing it.
That’s it! New solutions make the process of token creation easy and fun. Here you can find step by step descriptions of token creation processes for specific chains that are currently supported by the Tokenlaunchpad platform:
- Tokenization on Avalanche
- Tokenization on Base
- Tokenization on eSync Network
- Tokenization on Ethereum
- Tokenization on Gnosis
- Tokenization on Optimism
- Tokenization on Polygon
Things to keep in mind when you start tokenizing
Despite the token creation process being facilitated a lot, thanks to the tokenlaunchpad solutions, it’s important to keep in mind and beware of all other above-mentioned tokenization aspects such as regulatory matters, compliance, secondary markets, etc.
Tokenization is set to revolutionize asset ownership, management and investment. By leveraging platforms like Tokenlaunchpad, beginners can navigate this new terrain with ease and security. Remember, while tokenization offers numerous benefits, it’s crucial to conduct thorough research and seek professional advice before embarking on your tokenization journey.
Interested in tokenization? We are here to support you all the way. Check our website for more information or book a call with us to identify your project’s requirements – and how we can help you reach your project’s full potential: https://tokenlaunchpad.eu.
Further reading
[2] Tokenlaunchpad: a new App by Cryptix
[3] What is Tokenization? Types, Use Cases, Implementation | DataCamp
[4] Asset Tokenization Platform Development: Step-By-Step Guide For Tokenization Platform Development
