Is it beneficial to have physical assets on the chain?

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AMT LAND will help your assets and business on chain.

At present, it is beneficial to have physical assets on the chain, which are mainly divided into the following three points:

1. The immutability of the blockchain proves ownership

We already know that blockchains are immutable, and this functionality transfers well to tokenization. Having a digital history of transactions helps every stakeholder and investor prove their ownership.

At the same time, this structure also helps reduce the chance of fraud. If a token owner tries to sell a token multiple times, trying to transfer a token to multiple investors, this structure will show the exact history of ownership, making it impossible for him to fake transactions and defraud investors.

2. Programmability allows automation, improving transaction and sharing management

The ability of smart contracts to contain different business logic refers to programmability, which helps to establish automatic events when certain conditions are met. This means better pre-built rules. Tokenization also makes investor management easier.

By relying on third-party exchanges, secondary transactions can be tracked without any complications. Since tokens can include built-in compliance, this programmability can be very helpful in speeding up settlements.

3. Improve liquidity

Tokenization itself increases the opportunities for fractional ownership. Fiat currencies like the U.S. dollar can only go as low as $0.01, but tokens can have up to 18 decimal places, meaning tokens can be priced much lower unless certain restrictions are in place.

This means investors have a much lower chance of entering the market and more room for more ownership. For example, instead of investing $1,000,000 in a particular real estate, an investor could pay $5,000 for tokenized fractional 1/200 ownership.

How does the physical asset go on the chain?

Assets on the chain is a big migration, we can see that the blockchain is decentralized, and the country is centralized. Decentralized things require a decentralized approach. Just as the Internet has Internet play, offline play has offline play. Then the asset on-chain is essentially the decentralization of the asset. Then the path of assets on the chain must be gradually expanded from the decentralized side to the centralized one.

Therefore, according to some personal opinions, the path of asset on-chain is reversed. The first step is to complete asset on-chain from the network level, to complete the asset on-chain from the exchange level, and finally to complete the asset on-chain from the legal level. .

Judging from the current environment, the national government has no incentive to do legal asset registration. So, no doubt, it is wrong to cut from here.

The best way is to start directly with de-native assets, because these assets themselves are related to the chain. What kind of assets are native blockchain assets?

Pure digital assets, such as game assets, data assets, copyright assets and other Internet-based assets.

Only when these industries are in the explosive growth stage and these pure digital assets on the chain have produced social effects and made profits, will they move towards the field of weak centralization. Just like Alipay, it will only appear if Taobao has enough money to take the risk of a secured transaction. Alipay first appeared to solve transaction problems. The reason why banks did not develop Alipay is because there is no transaction problem with bank funds.

After game assets, data assets, copyright assets, etc. have been completed on the chain, the next step is to solve the transaction problem. In the beginning, there is absolutely no way for everyone to trade offline assets without legal protection. But then, because some credible blockchain project parties already have enough technology and credit guarantees to complete the transaction of offline assets even without legal guarantees, the final asset registration will come to an end. The foot completes the asset on-chain at the legal level. But this is the last step.

The above content gives you a detailed answer to the benefits of physical assets on the chain? What are the specific benefits? These two questions give a detailed introduction to the benefits of  assets on the chain and how to put assets on the chain. In addition, I would like to remind everyone that it is of great significance to have assets on the chain, just like protecting private property can be extremely important. Just like the great release of public innovation and creativity, the entire capitalist commercial civilization is built on this underlying logic, so the asset chain also has such a huge power. After the asset is on the chain, there will be global value. Streams, the influence of centralized institutions will be further limited.

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