Use Cases

Learn the tricks and insights from the Levolution community.

Use Cases

Tokenization provides significant benefits to every market participant, especially when taking into account real world assets and the financial opportunities for issuers & investors. Tokenization provides a more efficient, transparent, and equal financial world. The biggest benefits from tokenized assets are enhanced liquidity, lower barriers to entry, faster and cheaper transactions, more transparency, and fractal ownership.

Real world assets like real estate, stocks, gold, carbon credits, oil, art, etc., are difficult to physically transfer or subdivide. Investors are currently trading ownership or beneficiary rights in those assets; however complex legal and bureaucratic rules tend to be incredibly complex, hard to transfer, and expensive to manage.

Cryptocurrencies will not be the only store of value on blockchain as more real-world assets come “on-chain” and become tokenized.

A magnitude of real-world assets will be tokenized into digital assets and tokens. Some of the industries and assets that have the most to benefit from tokenization are:

Gaming

Gaming

Gaming

While the gaming industry continues to grow exponentially, there’s seemingly only one market participant that benefits from its continued growth – the gaming developers. Through the use of blockchain-based games, decentralized applications, and Non Fungible Tokens (NFTs) players are now able to capture the full value and utility of in-game assets.

 

As one of the fastest growing markets with over 2.5 billion active gamers, gaming is an excellent candidate primed to reap all the benefits of tokenization. When programmed into a token the utility of this concept is very powerful; for the first time in gaming history trivial items such as virtual property or collectibles, and even teams & sponsorships are represented as an actual asset.

Art & Collectibles

Art & Collectibles

Art & Collectibles

Tokenized art helps to do away with many issues that plague the art industry; democratizing the industry as a whole. By tokenizing private securities and typically illiquid assets, such as art and collectibles, a wider range of investors and traders are introduced to the market; automatically capturing the greater value from underlying assets.

Digitizing ownership into tradeable tokens improves liquidity of artworks, making investors more attracted to this form of investment. Also, blockchain immutability grants investors security with a reliable method to verify and authenticate their pieces of art.

Startups

Startups

Startups

Tokenized equity is emerging as a convenient way to raise capital. In this situation a business issues shares in the form of digital assets such as tokens and investors or traders purchase those tokens in exchange for a share of the company.

Fractionalizing ownership of a company into tradeable tokens allows entrepreneurs or business leaders to get the funding that they need in a much more swift and efficient manner. With plenty of benefits such as high-volume liquidity, globalized investor access, transparency, and scalability among other things, tokenized equity provides businesses with alternative effective measures to generate funds.

Investment Funds

Investment Funds

Investment Funds

Most investment funds typically require an investor to meet a threshold to make an investment; whether it would be a required minimum investment or some sort of earned income or held asset stipulation.

Tokenization immediately lowers the entry barriers associated with such funds, providing investors of any sort the opportunity to participate in profitable and well-diversified investment vehicles. This levels the playing field for those investors with a few thousand dollars to invest and those who control million or billion dollar fortunes.

Real Estate

Real Estate

Real Estate

The tokenization of real estate is the process of generating virtual tokens, which represent ownership of the asset’s interest. Those tokens can then be divvied up among investors in exchange for predefined shares of the asset.

Tokenized real estate will revolutionize the market entirely. Both issuers and investors are being introduced to significant & unprecedented advantages over existing real estate investment options. This also brings about an entirely new pool of investors to the market.

Natural Resources

Natural Resources

Natural Resources

With the tokenization of natural resources there is a direct relationship among the amount of natural resources that are collected from the earth and the amount of tokens that are issued to traders.

The natural resources market is a relatively illiquid market with high entry barriers (i.e., minimum investments requirements), which limits market access to few participants. Introducing  tokenization allows for fractionalization, therefore reducing entry barriers and creating access to new markets for smaller players. Increased market participation will result in increased market liquidity.