A Token Improvement — the Rise of Non-fungible Tokens

This article was first published on Power Ledger - Medium

A Token Improvement: The Rise of Non-fungible Tokens

Power Ledger’s product owner Anya Nova explores the rise of NFTs and how they open up a new market for Renewable Energy Certificates (RECs).

Blockchain has been the foundation for many new applications, including the latest novelty of tokenizations.

If you are unfamiliar with tokenization, it is essentially the act of creating a representation that cannot be duplicated, freeing up trades and transactions that would otherwise be much more problematic.

The concept of tokenization is hardly new. Around 4000 BC pieces of stone in different shapes were used to tokenize different amounts of cereal, or hours of work done.

Tokens from Tepe Gawra, present day Iraq, ca. 4000 BC. Picture courtesy of Denise Schmandt-Besserat

But in recent years, tokens have become digital, meaning any one of us can easily issue tokens to represent and divide up whatever we chose to see as an asset.

Unlike our ancestors, you don’t have to chisel some piece of stone or put any special hallmark or signature against what you believe is of value. Digital technology does that all for you.

Tokens to protect your IP

You can create tokens for your new handbag collection, a new collection of prints, baseball cards, or art in general, especially digital art. Not everyone will want to pay lots of money for your works, but if they do, you have a very good way of protecting your intellectual property from copying.

You may, with the help of a ‘smart contract,’ be able to derive royalties if people publish, use or resell your product.

Tokenization inevitably involves blockchain which allows you to create digital tokens that are non-counterfeitable.

In other words, you don’t need to be a mint or have banking style lithography with watermarks, embedded foil and holograms to manage the tokenization process.

The physicality ...

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