Tokenize your assets on the immutable ledger
Tokenization is the transformation of a physical asset like land, art-work, gold, equity, etc to a digital form on a distributed ledger known as a blockchain. A blockchain is a sequential, timestamped database that is stored on multiple computers at different geographical locations. Because all ledgers are the same, a single entry can be easily searched from any point on the network. You control your asset and the corresponding tokens through your private key. The private key acts as a pointer to where on the blockchain your asset is located. You can divide your asset into equal, tangible units and distribute them to friends, family, or shareholders. Advances cryptography and computing power have allowed us to easily and securely send value through a distributed ledger token.
How does tokenization work?
Through a process called hashing your asset is documented on two immutable systems. The content of your asset can be stored as a text, image, URL, audio, or video file. The asset can be a deed of trust certificate photo which is saved, timestamped, and transmuted into a hash using SHA-256 encryption. This random string of number and letters links to the content through a distributed web called Interplanetary File System (IPFS). The hash linked file is then attached to a distributed blockchain that can be verified on a block explorer. Now your file is permanently stored and searchable on the distributed ledger blockchain forever.
Examples of tokenization
There are many blockchains in existance, but not all blockchains are created equal. Bitcoin is the first, largest, and most secure blockchain although the individual blocks contain mostly transactional data. Ethereum’s blockchain contains smart contracts as well as transactions but the nodes are less distributed because of a larger memory storage requirement.
Ravencoin is our blockchain of choice due to the ability to easily create assets tied to the permanent web via the Inter-Planetary File System. The Ravencoin project is completely open source with a large community of users. The algorithm behind Ravencoin called X16R dynamically alternates between 16 different mining algorithms to disincentivize specialized mining machines called ASIC’s (application-specific integrated circuit) which further decentralizes the nodes on the network. Assets created on Ravencoin network are fungible, trustless, and allow for dividend distributions to token holders. With the IPFS attachment feature, proof-of-ownership documents such as a deed of trust, title, or unique ID can be tied to the token.