Some of the CEDEX team attended the Security Tokens Realized summit in London just a few weeks ago. This event brought together industry leaders in the security token space allowing like-minded projects to present, share, and discuss ideas. At this event, CEDEX’s CEO Saar gave several speeches that captured the attention of many listeners. You can find one of his interviews here.
Conferences like this one are helping to shape the rapidly growing security token sector of the cryptocurrency space. According to the Security Tokens Realized website, security tokens are projected to be worth over 10% of the worlds gross domestic product (GDP) by 2024! To give you a better idea, that’s around $7.8 Trillion dollars.
For those that are uninformed about the value of security tokens, let’s break down some of the benefits.
Fractional Ownership
Fractional Ownership of an asset is an extremely interesting and powerful concept that should only become more prevalent as security tokens become widely adopted. This can include anything from property to ownership of a business. Not everyone is able to fully buy a property or own their own business. The ability to own a percentage of an asset and receive a proportional reward will provide the average person with additional alternative revenue streams.
Higher Liquidity
An assets liquidity depends on the ability to convert it into cash. Currently, with real-world assets such as property, cars, and businesses there are several obstacles involving the sale. By digitizing this process, precious time and money can be saved.
Elimination of Middlemen
This is one of the most famous issues that blockchain technology aims to solve. Middlemen are involved in so many industries and cause increased prices for many services. Another similar benefit is the idea of permissionless transfer of value. Digital assets will be able to be traded regardless if a government or person is trying to restrict a transaction.
Access to Global Markets
Currently, laws and regulations in certain countries such as the US make it difficult to transact assets globally. The goal with security tokens is to enable global transactions allowing people from all over the world to transact with each other.
Conclusion
Security tokens are just starting to gain traction and it will be extremely exciting to see just how much adoption they receive in the upcoming years. What’s your favorite feature of security tokens? Let us know in the comments below.