Explanation
SYNERALISTICS is tasked with covering works of art that can be represented in the form of Non-Fungible Tokens (NFT). for example, a painting by Andy Warhol entitled “Untitled (Banana)” created in 1985 was converted into an NFT digital asset in 2021.
SYNERALISTICS will provide opportunities in the form of tokenization of real estate, so that it becomes a digital representation of physical property. in this context, property assets are broken down into tokens stored in a decentralized database, facilitating efficient ownership and trading.
SYNERALISTICS will also facilitate investors' ability to trade commodity shares, such as gold, silver and oil. for example, Digix Gold Token (DGX) has a value tied to the price of physical gold held in Digix vaults in Singapore.
Asset Identification and Valuation The initial stage in this process involves identifying and assessing the real-world assets to be tokenized. assets can be real estate, fine art, commodities, or intellectual property. The value of the asset is determined, and a decision is made regarding dividing the asset into digital tokens.
Legal and Regulatory Compliance ensuring compliance with applicable rules and regulations is an important step before proceeding with tokenization. To facilitate tokenization while remaining compliant with applicable regulations, legal entities, such as Special Purpose Vehicles (SPV) can be developed. sPVs are created for specific financial purposes, such as storing and managing assets, reducing risk, or facilitating investments.
Creation of Smart Contracts Blockchain-based smart contracts are created to govern how tokens will be created, managed, and traded. automation of various processes and the guarantee that they are carried out according to agreements relies on smart contracts.
Blockchain Platform Selection The next step is to choose a suitable blockchain platform for tokenization. for example, Ethereum may be chosen because it supports smart contracts and has a strong developer community. Other blockchain platform options with tokenization features are also possible.
Token Creation Next, digital tokens are created that represent ownership or rights to physical assets. Each token generally represents a small portion of the asset's value. Token development using the chosen blockchain often follows established token standards, such as ERC-20 for Ethereum-based tokens.
Ownership Records A visible and immutable ledger in the blockchain records token ownership, including information regarding token owners, purchase, sale, and transfer transactions. This transparency plays an important role in preventing incidents of theft or ownership conflicts, because every transaction detail is documented and can be accessed by all parties involved.
Safe Custody Solutions protection of the physical assets underlying the tokens requires an effective custody solution. These solutions can involve physical security measures for concrete assets, such as real estate or secure storage for digital assets.
Trading Platforms (Exchanges) and Markets The trading platform or market is formed as a place where assets that have gone through the tokenization process can be obtained, sold and traded. Connectivity with crypto exchanges simplifies access for investors to trade with these tokens.
accessibility and Liquidity Tokenization of physical assets increases accessibility and liquidity.In contrast to traditional markets that have strict trading restrictions and expensive barriers to entry, investors can trade these tokens around the clock making them more accessible
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