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How NFTs, DeFi and Web 3.0 are intertwined

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While blockchain itself provides the technology constructs to facilitate exchange, ownership and trust in the network, it is in the digitization of value elements where asset tokenization is essential. Tokenization is the process of converting the assets and rights to a property into a digital representation, or token, on a blockchain network. 

Distinguishing between cryptocurrency and tokenized assets is important in understanding exchange vehicles, valuation models and fungibility across the various value networks that are emerging and posing interoperability challenges. These are not just technical challenges, but also business challenges around equitable swaps.

Asset tokenization can lead to the creation of a business model that fuels fractional ownership, the ability to own an instance of a large asset. While discussing asset tokenization in a previous article, I also mentioned the value of an instance economy in democratizing finance, commerce and global access, as well as in creating a broader global marketplace at a scale never before seen.

With digital assets and their fungibility in a blockchain ecosystem, there are various drivers of valuation. These include: 1) tokens based on crypto economic models that are driven by supply and demand, and the utility of the network; 2) nonfungible tokens, or NFTs, which have an intrinsic value such as identification, diplomas and healthcare records — essentially, tokens that are simple proof validations of the existence, authenticity and ownership of digital assets; and 3) fungible tokens that are valued on various bases, such as the sum total of economic activity in the network (cryptocurrency), its utility (smart contracts and transaction network processing), assigned values (stable coins and security tokens), and so on.

In this article, I address the complex issue of the hyperbolic and rapid rise of NFTs, after a similarly meteoric rise of decentralized finance, or DeFi, creating amazing innovations — with immense promise of democratization, new business models and global marketplaces with global access — all fueled by the basic premise of decentralization and fundamental constructs of tokenization and wallets. While NFTs may be characterized as one-of-a-kind cryptographic tokens with some intrinsic value to a holder or to a market (art, collectibles), the NFT movement is indicative of a larger token revolution that will not only fuel massive innovation and growth in Web 3.0 protocols but also test the resolve of the DeFi movement, along with its ability to intersect and provide platforms and an exchange vehicle for all token types.

Growth in Web 3.0 protocols

The first two generations of web protocols were largely about disseminating information and connecting people. They fueled a massive growth in information and collaboration, and did wonders for connecting the world. However, those web protocols were never designed to move things of value. Also, as the Web 2.0 era reached its fullest potential, vulnerabilities such as “fake news” and the “batched relay” of the movement of assets via a series of intermediaries emerged. Threats to the commerce and financial infrastructure of the system risk destabilizing it.

Web 3.0 promises to safeguard all things we value: information, truth and digital assets — both fungible and nonfungible. Whereas Web 2.0 was driven by the advent of social, mobile and the cloud, Web 3.0 is largely built on three new layers of technological innovation: edge computing, decentralized data networks and artificial intelligence.

The growth of NFTs has not only empowered the ability for artists, skilled professionals and entrepreneurs to encapsulate innovation in a tokenized form but has also fueled the democratization of the platform as one of the promises of blockchain technology. The underlying infrastructure includes decentralized storage technologies, efficient consensus protocols, off-chain computing, and oracle networks to provide connectivity and validation to existing systems.

Collectively, the Web 3.0 set of technologies envisions a connected, trustless, accountable network for efficiently delivering value, thus crafting an infrastructure for things of worth. NFTs represent both transferable entities and nontransferable tokens that we value. The latter include things such as our identification, healthcare records and passports, things that represent us and allow us to participate in the digital economy with our own unique, digital identities.

As we dare to envision a shift toward a world with decentralized control, governance based on distributed technology that challenges every business model, and governance structure built upon centralized business frameworks, we do have to ponder some things. Not only the shift itself, but the motivation, incentive and monetization elements that fuel and power the economic infrastructure to move things that have value — thereby keeping up with our changing perception and subsequent realization of that value.

Intersecting with finance — DeFi

DeFi is the movement in the blockchain applications space that leverages decentralized network technology to disrupt and force a transformation of old financial products into trustless, transparent protocols, facilitating digital value creation and dissemination with few to no intermediaries. It is widely understood and accepted that — due to new synergies and co-creation via new digital interactions and value-exchange mechanisms — blockchain technology lays the foundation for a trusted digital transactional network that, as a disintermediated platform, fuels the growth of marketplaces and secondary markets.

While DeFi aims to deliver the promise of finance democratization, NFTs test the resolve of DeFi by delivering a competitive yet inclusive asset class, plus avenues to provide a medium of exchange, fungibility by other fungible asset classes, and liquidity to a traditionally illiquid market.

Asset classes resulting from DeFi protocols and NFTs avail themselves of the advantages of fractional ownership of the assets, blurring the lines between asset classes and using constructs like digital wallets as a receptacle for them. This is all supported by underlying layers of Web 3.0 that provide security and availability via decentralization, as well as trust and immutability via consensus, extending these principles to basic computer infrastructure like storage and interconnect.

Commercialization of Web 3.0 protocols, which manifest as fungible utility tokens, further blurs the lines with diverse financial innovation products introduced by DeFi (such as base assets and derivatives), products that are also tokenized. So, while decentralization is the underlying theme — and the wallet and the token are fundamental constructs — these blurring lines are quite profound.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Nitin Gaur is the founder and director of IBM Digital Asset Labs, where he devises industry standards and use cases and works toward making blockchain for the enterprise a reality. He previously served as chief technology officer of IBM World Wire and of IBM Mobile Payments and Enterprise Mobile Solutions, and he founded IBM Blockchain Labs where he led the effort in establishing the blockchain practice for the enterprise. Nitin is also an IBM Distinguished Engineer and an IBM Master Inventor with a rich patent portfolio. Additionally, he serves as research and portfolio manager for Portal Asset Management, a multi-manager fund specializing in digital assets and DeFi investment strategies.

How NFTs, DeFi and Web 3.0 are intertwined

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DeFi’s money markets are finally luring in institutional investors

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Bitcoin’s bull run from last year has caused even some of its biggest skeptics to soften their stance. From economists to hedge fund managers, the world is opening itself up to technology, and at the center of this movement is decentralized finance, or DeFi. While the market capitalization of all cryptocurrencies has hit $2 trillion, worth as much as Apple, it’s the promise of DeFi — a small corner of the blockchain industry today — that’s grabbing the attention of institutional investors.

As Bitcoin’s (BTC) bullish trend persists, interest-bearing crypto products have become all the rage. Some services offer up to 8% returns on Bitcoin holdings. For investors who are already expecting a rise in value, this can be incredibly useful for maintaining cash flow without selling any assets.

The three main factors solidifying institutional interest in Bitcoin are the current historically low interest rates, the inflation rate and geopolitical instability. With near-zero interest rates expected for the foreseeable future, investors are gearing up to move their funds into alternative locations for securing wealth.

The United States Federal Reserve’s 2% inflation target has incited concern in investors fearing devaluation, and with tensions between the U.S. and China on a precarious edge, portfolios denominated in U.S. dollars are becoming riskier by the day.

A market for money

Buying, storing and using cryptocurrencies securely is still quite a complex ordeal — far more involved than setting up a bank account. However, according to Larry Fink, the CEO of BlackRock — a global investment management fund with nearly $9 trillion in assets under management — Bitcoin could evolve into a global market asset and achieve new highs in the upcoming years.

In the traditional financial system, money markets are parts of the economy that issue short-term funds. They usually deal with loans for periods of a year or less, and offer services like borrowing and lending, buying and selling, with wholesale trading taking place over the counter. Money markets are composed of short-term, highly liquid assets and are part of the broader financial markets system.

Money markets are traditionally very complicated, with expensive overheads and hidden fees pushing most investors to hire a fund manager. However, their existence is paramount to operating a modern financial economy. They incentivize people to lend money in the short term and allocate capital toward productive use. This improves the overall market’s efficiency while helping financial institutions meet their goals. Basically, anyone with extra cash on hand can earn interest on deposits.

Money markets are composed of different kinds of securities, such as short-term treasuries, certificates of deposits, repurchase agreements and mutual funds, among others. These funds generally consist of shares that cost $1.

On the other hand, capital markets are dedicated to the trade of long-term debt and equity instruments, and point to the entire stock and bond market. Using a computer, anyone can purchase or sell assets in mere seconds, but companies issuing the stock do so to raise funds for more long-term operations. These stocks fluctuate, and unlike money market products, they have no expiration date.

Since money market investments are virtually risk-free, they often come with meager interest rates as well. This means that they will not produce huge gains or display substantial growth, compared with riskier assets like stocks and bonds.

DeFi vs. the world?

To hedge against currency risk, institutions have started using Bitcoin, and retail investors are following their lead. More than 60% of Bitcoin’s circulating supply hasn’t moved since 2018, and BTC is predicted to push well above $100,000 in the next 24 months.

If the current trend carries forward, investors will continue to stockpile BTC. However, while much of the supply of the world’s first cryptocurrency remains in storage, the DeFi industry is constantly producing alternative platforms for interest-bearing payments through smart contracts, which increases transparency by allowing investors to view and track on-chain funds.

The average return for DeFi products is also much higher than in traditional money markets, with some platforms even offering double-digit annual percentage yields on deposits. From asset management to auditing smart contracts, the DeFi space is creating decentralized infrastructure for scalable money markets.

According to Stani Kulechov, co-founder of the Aave DeFi protocol, rates are high during bull markets because the funds are used to leverage more capital, with the cost of margin pushing up the yield. “New innovation in DeFi is consuming more stablecoins, which further increases the yield. Unless there is a new capital injection — these rates might stick for a while,” he said.

The Ethereum network currently hosts most of the DeFi applications, and this has barred tokens that aren’t available on the network from participating in decentralized finance. Bitcoin, for example, despite being the largest cryptocurrency by market capitalization, has only recently found its way onto DeFi platforms.

Related: DeFi yield farming, explained

With Kava’s Hard Protocol, investors can yield farm using Bitcoin and other non-ERC-20 tokens like XRP and Binance Coin (BNB). Backed by some prominent names (Ripple, Arrington XRP Capital and Digital Asset Capital Management, among others), the platforms allow users to stake their cryptocurrencies into a pool of assets, which is lent out to borrowers to generate interest.

The team also plans to add support for Ethereum-based tokens in the near future. The network’s upgrade to Kava 5.1, which was postponed to April 8 after failing to reach the required quorum, will also introduce the Hard Protocol V2, bringing powerful incentivization schemes and enhancements to its governance model.

Most loans in DeFi are overcollateralized, meaning the pool always has more money than it lends out. In case the value of the issued token drops, funds in the pool are liquidated to compensate.

According to Anton Bukov, co-founder of decentralized exchange aggregator 1inch, blockchains are the first-ever unbiased executors in human history — very limited, but ultimately fair — and could deliver new services and new flows of interactions in future. “Developers are doing their best to solve potential dishonesty issues of existing flows and invent new flows by replacing intermediaries,” he said.

By creating an automated platform to borrow and lend assets, decentralized finance enables money markets without intermediaries, custodians or the high fees that stem from high infrastructural costs.

Honest work

Of the many trends DeFi has set into motion over the last few years, yield farming has attracted quite a lot of attention. Yield farming is when the network rewards liquidity providers with tokens that can be further invested into other platforms to generate more liquidity tokens.

Simple in concept, yield farmers are some of the most vigilant traders out there, constantly switching up their strategies to maximize their yield and tracking rates across all platforms to ensure they’re getting the sweetest deal. The potential rate of return can become obscenely high, but it’s still unclear whether yield farming is just a fad or a phenomenon in the making. Kulechov added:

“Yield farming is simply a way to distribute governance power to users and stakeholders. What actually matters is whether the product itself would find protocol market/fit. Most successful governance power distributions with yield farming have been with protocols that have found protocol market/fit before such programs.”

Yield farming has an incredibly positive feedback loop, with an increase in participation pushing the value of its governance token up, driving further growth. According to Kava CEO Brian Kerr, while this feedback loop can produce very positive results in bull markets, it can have entirely the opposite effects in falling markets:

“It will be up to the governance groups of the various projects to navigate bear markets effectively, by ratcheting back rewards before a full-on death spiral occurs. Regardless of bull or bear markets, yield farming will be a mainstay in blockchain projects for years to come.”

Money markets are the pillars of our global financial system, but most of its transactions occur between financial institutions like banks and other companies in time deposit markets. However, some of these transactions do find their way to consumers through money market mutual funds and other investment vehicles.

Decentralization is the next frontier for finance, and as prominent investors continue to engage with the DeFi space, a decentralized economy seems all but inevitable. Participating in the burgeoning environment may be a risky bet today, but what decentralized finance platforms learn now will be the foundation of the robust DeFi applications of the future. According to Bukov, the higher interest rates of DeFi platforms are “absolutely sustainable.” He added:

“Higher profits are usually involved with higher risks. So the risk-profit model of all these opportunities is always nearly balanced. Normalizing risks would decrease profits because more participants will join to share the rewards.”

From smart contract malfunctions to the unauthorized withdrawal of community funds, the DeFi space is a place of both miracles and nightmares. DeFi-based yield farming platforms are still in their very early stages, and while the numbers can be all too tempting at times, it’s crucial to do your own research before investing in any platform or asset.

DeFi’s money markets are finally luring in institutional investors

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Top NFT Projects You Must Know in 2021

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Top NFT Projects You Must Know in 2021

Wondering what NFTs are? Want to know some of the top-rated NFTs? Well, we have got you covered! 

Table of Contents 

  • What are NFTs?
  • Top-Rated NFT Projects on the Rise 
  • Concluding Lines 

What are NFTs?

NFTs stand for Non-fungible tokens, which means that they are unique and can’t be replaced with something else. If we talk about a fungible asset, it is something with units of data that can be interchanged easily and quickly – for instance, money. 

In the digital world, most technocrats define non-fungible tokens as “one-of-a-kind” assets that can be bought and sold like any other property but have no tangible form of their own.

Here it is important to note that although NFTs can be anything digital, for instance, drawings, music, etc., but at present, excitement is around using the technology to sell digital art.

In most simple words, NFT is a unit of data on a digital ledger called Blockchain, where each can represent a unique digital item.

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Top-Rated NFT Projects on the Rise 

CryptoPunks 

It is one of the high-grossing NFT projects and is considered to be one of the most simplified art forms for NFTs. Blockchain Experts and technocrats believe that it is a project that inspired the modern CryptoArt movement. CryptoPunks project enables its users to trade and store 10000 unique collectible characters generated uniquely using Proof-of-Ownership stored on the Ethereum Blockchain. By providing art ownership that can be transferred smoothly and continuously between users, this project is creating a decentralized digital art market. Its website describes itself as the first “NFT” on the Ethereum Blockchain network and an inspiration for the ERC-721 standard, powering most digital artworks and collectibles.

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SuperRare

Founded in 2017, it is a marketplace for single-edition digital artworks that uses an ERC-721 token that is traceable and cryptographically secured to represent each digital artwork. 

What happens is artists upload their digital artwork, and the platform certifies the digital artworks on the Ethereum blockchain network in order to prevent forgery and offers to trace. In addition to this, SuperRare charges artists a percentage of commission to upload artworks on the platform. As the platform is among the top-ranking NFT-art marketplaces, it has reached an all-time trading volume of around $7.5 million, and also more than 12 000 pieces of digital art have been sold. 

Pascal Boyart 

The OpenSea storefront of Pascal Boyart has sold digital artworks of approximately 400 ETH, with new offerings prices above 75ETH. As the name of the project suggests, Boyart is a skillful artist based in Paris who creates Digital Collectibles from his street art frescoes and has sold some of his artworks in a tokenized form in the past.

Talking about the new mural paintings, these are encased in newly minted non-fungible tokens and are sold at an auction, indicating that the crypto domain can build an art market easily within months. According to reports, Boyart’s murals also got featured in the digital Museum of Crypto Art.

To have a look at the recently added artworks by Pascal Boyart, you can visit: 

https://opensea.io/collection/pascal-boyart?ref=hackernoon.com

The SandBox

Sandbox’s website describes itself as a community-driven platform where producers can monetize voxel assets and gaming experiences on the peer-to-peer, decentralized, Blockchain platform. The Sandbox is powered by SAND (ERC-20) token and ERC-1155 tokens: LAND and FUND. The platform features three sub platforms, namely:

  • VoxEdit enables users to create and animate voxel art and export them worldwide.
  • A marketplace that provides a place to sell and collect the most beneficial assets. 
  • Game Maker allows consumers to make and play any game of their choice that they ever imagined. 

This platform partners with Atari, Square Enix, Care Bears, The Smurfs, and other leading brands. Although it has entered the crypto space recently, the project is the seventh valuable NFT protocol. 

Lil Moon Rocket

Unlike other NFT projects that are built on Ethereum Blockchain, Lil Moon Rocket is an NFT project that uses the Binance Chain to issue NFTs and subsequent “name rockets” tokens. The project follows the latest trends in the Combination of vector art and algorithm generation. Each customer can obtain their own moon rocket picture after the initial selling of the digital artwork. Lil Moon Rockets uses its own “blind auction” model to keep project managers and early competitors from purchasing the most desirable artwork first. At the completion of the smart contract, all artwork will be revealed. The best part is that owners can co-create uniqueness by renaming the artworks with full ownership, and the first collectible with determined consumer traits are offered in vector graphics.

Concluding Lines 

NFTs have the potential to transform digital exclusivity and offer a new definition to digital property rights. As celebrities have begun collaborating with NFT projects, projects have started gaining momentum, with projects reaching record-breaking sales. As a result, we will foresee NFT growth in 2021 and beyond, as well as deeper integration between decentralized finance(DeFi) and NFTs to make them more liquid and valuable. To sum up, combining art and collectable characteristics seems to be one of the most effective ways to draw new buyers.

To get instant updates about Blockchain Technology and to learn more about online Blockchain Certifications, check out Blockchain Council.  

Top NFT Projects You Must Know in 2021

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UAE minister of economy: Crypto & tokenization “key” to doubling GDP

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At a panel for the World Economic Forum’s Global Technology Governance Summit today, United Arab Emirates minister of economy Abdulla Bin Touq Al Marri said that cryptocurrency and asset tokenization will be key to the country’s plans to double its economy — currently estimated to be the 34th largest in the world — in ten years. 

Al Marri was joined on the panel, titled the “Arrival of the token economy, from art to real estate,” by artist Harry Yeff and WEF executive Sheila Warren. While much of the conversation centered on the current NFT craze, Al Marri’s comments centered largely on forthcoming tokenization use cases and their regulation.

According to Al Marri, the country has ambitions to grow its GDP by 7% yearly, which would put it on track to double the size of its economy by 2030. Tokenization will be a key cog in this effort, as “tokenization compliments information-based economies.”

Perhaps most exciting from an adoption standpoint, the minister said that the country has several ambitious projects underway, including a study underway being conducted along with the WEF on funding small and medium sized enterprises with a government-run token platform, possibly as part of a “regional token exchange” which is “in our agenda,” Al Marri said.

When asked about how the government — which by nature is deeply embedded in a pre-token economy — will interact with these new models and the need to regulate them Al Marri said the goal is to protect investors as well as the larger financial system without stifling innovation.

“We’re a government, we’re good at regulation,” he joked.

He highlighted two pain points in particular: Lack of “harmonized regulation,” and lack of sufficient regulation. He noted that jurisdiction and regional regulations need to work together in order to prevent cloistered bubbles of innovation, and to ensure that new asset models, such as fractionalized ownership, benefit all.

“How can we bring fractionalization to a level where everyone can benefit?” He asked.

He also noted that fractionalized ownership can lead to real world-meets-blockchain bugaboos: if an apartment has fractionalized ownership, who pays the upkeep fees? If there’s a fractionalized painting, what happens when the painting gets stolen?

Ultimately, the country is eager to lead the world in facing these questions head-on.

“We understand the challenges as such, but we are experimenting, and allowing the UAE to be a site of experimentation.” 

UAE minister of economy: Crypto & tokenization “key” to doubling GDP

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CoinMarketCap removes South Korea crypto exchanges from Bitcoin price tracker

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Crypto price trackin website CoinMarketCap has removed many South Korean exchanges from its calculations for the price of Bitcoin as the coin dipped under $58,000 again.

As of today, CoinMarketCap’s Bitcoin price tracker shows no data from major South Korean crypto exchanges including Upbit, Bithumb, Coinone, and Korbit. The website uses data from many exchanges to estimate the average price for cryptocurrencies. At the time of publication, the price of Bitcoin (BTC) is $57,721, having fallen more than 2% this morning.

Speaking to Cointelegraph, CoinMarketCap content manager Molly Jane Zuckerman said the removal was due to the premium observed on crypto exchanges based in South Korea. The crypto analytics provider estimates the BTC price to be roughly 6% higher than that on other exchanges.

“If the prices on South Korean exchanges stabilize, then we will add the data back in, but that hasn’t happened yet,” said Zuckerman.

The last time the price tracking website took similar action was in 2018, when CoinMarketCap announced it had “excluded some South Korean exchanges in price calculations due to the extreme divergence in prices from the rest of the world and limited arbitrage opportunity.”

During roughly the same time three years ago, the price of XRP was falling significantly after reaching an all-time high of $2.96 on Jan. 2. However, the token is looking bullish today, having briefly surpassed $1.00 for the first time since 2018 after it rose more than 20% in the last 24 hours. The price has since fallen to $0.9694 at the time of publication.

CoinMarketCap said only its Bitcoin price index was affected today, given the large volume of the crypto asset on South Korean exchanges. Last month, the volume of transactions in the South Korean digital currency market — driven in part by the price of BTC reaching an all-time — briefly exceeded the daily average transaction amount of the country’s stock market.

CoinMarketCap removes South Korea crypto exchanges from Bitcoin price tracker

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Tokenomics From Myths to Reality

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Codezeros

Now that the world is transforming towards a more technologically enhanced environment, newer terms are occupying markets. Every day there is something new coming up and surprising us. The tech market has given us a brand-new term to ponder upon, Tokenomics!

So, what is it? Well, Tokenomics is widely defined as a system used for formatting pricing policy for tokens. Tokenomics is basically an amalgamation of two words: Token and Economics.

The driving concept of Tokenomics is none other than Blockchain and cryptocurrency development services. Here, we will have a look into how Tokenomics is becoming prevalent for tokenized transactions and what the challenges are waiting on its way.

codezeros.com

Tokens and Tokenomics:

Tokens are value units assigned by a specific organization and a part of an existing blockchain. Tokens can have value in the form of a certain service, ownership, or rights over any asset. The values are more of use cases than currency.

Tokens should also possess certain qualities to qualify as valid Tokens. The value assigned to a token must be scalable and be resilient to inflations. The basic Tokenomics is what helps a token to get funded, thus promoting a financially sustainable business model of tokenization blockchain service provider.

The future is digitized, and thus, improvising on the revenues in digital spaces can be richly aided with the involvement of Tokenomics. Digitization of assets is the very first step towards building a digitally stable and competent business system by virtue of tokenization security.

Why Tokenomics?

Tokenomics is fundamentally different from economics and has an important role to play in the growth of digitization. With the intervention of Blockchain and cryptocurrency, the security of transactions has increased manifolds, and it is strongly believed that the future is tokenized.

Let’s see some applications of Tokenomics.

Producer-Consumer Alignment:

Tokenized economies are helpful for consumers whose values are not aligned with big profit-centered enterprises. Bypassing such enterprises will bring you closer to token-based blockchain networks where consumers and producers join hands to meet each other’s specific needs and establish a healthy relationship.

Full Cost Accounting:

With the use of tokens, the prediction of both social and economic costs can be done effortlessly. This is a great benefit for multiple stakeholders, and thus, the involvement of Tokenomics is highly encouraged in such fields.

Investments:

Investors all around the globe are searching for opportunities that will let them analyze and look through the vulnerabilities and benefits of each investment made. This not only lets them build a reliable and robust model but also helps them to mobilize their business throughout the community. Token Development Services, along with Tokenomics, is an aid for the aforesaid plan and certainly is a factor that lets the business ecosystem grow to match the ongoing digitization standards.

Challenges about Tokenomics

Now there are four challenges that Tokenomics is facing while growing into a reliable business aid.

The first one is mental inertia. This is basically a stopping force that is raging among people who have never used such technologies in their business. Thus, fear and uncertainty creep in to form a rigid belief that may be; the outcome would not be as expected.

Tokenomics, being quite an infant technology, is still not preached globally, and many businesses resort to equip such newer technologies in their model. This is certainly because Tokenomics is either overly simplistic or cautious.

The next challenge about Tokenomics is associated with the inculcation of Artificial Intelligence. A lot of stakeholders believe that AI involvement might lead to False paths, and thus, the ultimate outcome will be that the business failed to reach where it headed to. The lost path might not be a good risk to take, and hence tokens are avoided by such businesses.

The third and one of the biggest challenges that token development services face is the existence of Government rules and restrictions. In many cases, these rules and regulations are contradicted by Tokenomics policies, and thus, they are unable to cross through the judicial barriers, to reach out to potential businesses.

The last Challenge to mention regarding Tokenomics is that people think differently about this new aspect of the digital business scheme. The dilemma to decide on whether to bring in Tokens or avail of cryptocurrency development services as part of a business is a confusing question, and the answer solely depends on one’s requirement.

How to overcome the challenges?

Now that these challenges are visible around, it is important to seek help from crypto security companies and systemize the entire process of bringing in Token services in a business.

  • Start with describing the expectations from the product of the project, along with customer characteristics. This will enable you to assign the value of each Token accurately.

Conclusion

The arrival of new technologies does face a bit of resistance in the first go, but with time and developments, the option available widens, and people start trusting the newcomer. Tokenomics has a long way to go, and it has already started the journey with little steps. Businesses that have equipped Tokenomics will serve as encouragement for others, and the growth will stabilize soon.

Tokenomics From Myths to Reality

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