Tokenization is surely in the talks these day. Many are considering tokenization of their business models. Let us understand how tokenization can help businesses with a competitive edge. We spoke to the CEO of Block-Stars Pvt Ltd, a leading token development service provider, Mr. Nathun Kwon. Here’s what he has to say.
Are token-based businesses really increasing these days?
CEO-A growing number of businesses worldwide use crypto assets for a variety of purposes which incldues operational and transactional processes. There are many opportunities and challenges that crypto can bring to your business. Companies looking to incorporate crypto into their business should have a clear understanding of why they are doing this. It is important that a company prepares well ahead for crypto participation and acts thoughtfully.
Why tokenization of businesses can be advantageous?
CEO- Tokenization allows you to create incentives for support and promote the use of your business model. To increase reliability and security, it allows for the division of functional elements of the business between more entities that are not permitted to be used. Tokenization of assets has the following advantages: liquidity, efficiency, and transparency.
In what way can a company adopt crypto into their business operations?
CEO- You need to carefully consider the best path for your company.
You should consider the potential drawbacks, costs and risks as well as system requirements. There are two ways to it- either have crypto in your balance sheet Or just adopt crypto-enabled payment options.
How can one decide if they should tokenize their business model?
CEO- One must analyze if their business model is established successfully without Blockchain or not? They must ask themselves the following questions-
- Can their value proposition be tokenized and what could be the impact?
- Is tokenization of your business model a good idea in terms of market adoption and market size?
- Are there any privacy requirements?
A Business Model that is tokenizable doesn’t necessarily mean it is easy to use. Tokenization serves two purposes: to provide liquidity on the secondary market and access a global marketplace . Tokenization is intended to provide liquidity on the secondary market for its stakeholders and strong access to a global market.
Block-Stars Pvt. Ltd. offers outstanding Blockchain, NFT, DeFi, and cryptocurrency Development Services & Solutions, so your business stays free from intermediaries and middlemen.
With the help of Blockchain technology, Block-Stars enables complete automation, high security, interoperability & 100% transparency in the business of clients across the globe. The Block-Stars team specializes in developing latest blockchain and Crypto trends. They are at the moment looking forward to expanding their business throughout across various part of the world. Their are based at South Korea and have regional offices at USA, Sri Lanka, & India.
Want to know more about Block-Stars Pvt Ltd. Head on to their website for more details.