From cryptocurrencies to NFT, Blockchain technology has reshaped ideas from what an asset can be. In some cases, he also transforms the ways in which investors can earn money. Activities such as staggered – where users receive payments for the delegate of their assets to blockchain networks, so that they can work more easily – provide new forms of unique income in the digital age.
Certain innovations, such as ETFs linked to crypto, fill the gap between crypto and traditional finance. But the evolution of cryptographic assets takes two distinct paths, and these offers only mark the start of the way in which digital and traditional finance could train, explains Olivier Roussy Newton, co -founder and CEO of DEFI Technologies, a company that offers regulated and secure access to decentralized finance.
“The biggest trend and the growth we see (for cryptographic assets) is these cases of using real assets, including the potential digitization of currencies such as the US dollar or the Euro on the blockchain. This opens a plethora of opportunities, “he says.
Create liquidity in the digital world
Other changes trade in unexplored digital territory. There was a rapid increase in what can be exchanged via blockchain: although NFT and digital works have been able to make the headlines, in some jurisdictions, real estate can also be exchanged on chain. “The active ingredients that are traditionally illiquid – art, music, real estate – are very difficult to transform or transgrated only very rarely. But once they are tokenized, which means that you have a digital representation of these assets, they can be negotiated more easily, ”explains Agostino Capponi, professor of industrial engineering and research on the operations of the Columbia University.
However, these transactions will not necessarily be digital replicas of similar offline purchases. Once a real asset has been divided into tokens, these tokens can also be divided and split. Just as investors do not need to buy a whole bitcoin, it is also not necessary to buy a whole token, illustrations or goods. “You don’t have to exchange all the work of art, but you can exchange part of it. You can perhaps exchange the face or you can exchange your hands and so on, ”explains Capponi. “This allows users to have a fraction of an asset and to negotiate more easily on different platforms, therefore developing a more liquid market.”
A promised change of power
Another key promise of the blockchain is the decentralization of power. Modern financial services are built on intermediaries responsible for expensive work for processing very complex information, heavy with confidentiality problems or not published to the general public for strategic reasons, according to Tarik Roukny, Associate Professor of Financing at the Faculty of Economy and Commerce in Ku Leuven. This puts large quantities of power in the hands of intermediaries, which allows them not only to extract costs, but also to create a highly concentrated market which limits competition.
