An NFT can be almost anything, but how do you tokenize your current assets?
The NFT of a digital picture collage by artist Mike Winkelmann (also known as Beeple) sold for $69 million. Looks good, doesn’t it? Could you sell any of your possessions or works of art for that amount?
Most likely not, but you can use blockchain technology to create a digital representation of your item by tokenizing it. Additionally, it gives prospective artists more control over receiving contributions and serves as a source of crowdsourcing.
The steps for creating non-fungible tokens (NFT) for your assets are described below, along with what you need to know about asset tokenization.
Asset Tokenization: What Is It?
Asset Tokenization development services also referred to as NFTs, are the process of producing digital tokens that signify ownership of physical assets. Blockchain technology is used during the token creation process, enabling you to store and trade the tokens without restriction or risk, just like you would with other cryptocurrencies and blockchain-based assets.
You can list a non-fungible token of an asset on an NFT exchange once it has been created (if you wish to sell ownership of it). Assets with clear market worth, like digital trading cards or works of art, can be easily tokenized. Tokenizing real estate or works of art, however, calls for evaluation and auditing by a bank, accountant, or legal company.
You can tokenize your own assets or abilities to fund development initiatives that increase the value of your assets by using the methods that follow.
1. Choosing an Asset
You can tokenize whatever you have or can produce, but it’s best to pick something with potential longevity (which is why the current NFT market features so much “art”).
The most common things that people tokenize are the following:
- Gold, diamonds, platinum, commemorative coins, stock certificates from major corporations, stones, and other items all have rising values.
- You can set up NFTs in opposition to items like a high-end car, a luxury yacht, an airplane, or even your home. Once more, you have the choice of deciding what proportion of the asset the token will represent.
- The most frequently tokenized assets are works of art, musical collections, graphic designs, pictures of pets, sports memorabilia, and antiques.
- Intangible assets like patents, trademarks, copyrights, carbon credits, etc. can also be tokenized.
2. Choosing a Revenue Model
- You might want to list your paintings, graphics, or other visual works in NFT marketplaces like OpenSea, Crypto.com, or Orica if you plan to tokenize them. You will receive money to support any development projects when someone buys these tokens.
- You will tokenize your work or working hours if you are a software programmer, app developer, UI/UX, or designer. In addition to buying tokens, you may also sell your services to token holders.
3. Symbolic Economics
The success of asset tokenization is influenced in part by token economics. If you continue to make progress on the project you’re sponsoring, the value of NFTs awarded for your artwork, UI/UX designs, graphics, memes, collectibles, or photographs will rise.
If suddenly more people start investing in your tokens and supporting your project, the value of the tokens will likewise rise.
4. Online NFT creation
On the Ethereum blockchain, an ERC20 token is the most widely used type of NFT. You can mint your tokens on a variety of online sites. The most popular ones are ERC20 Token Generator, Guarda, and TokenMint.
An ERC20 NFT can be created quickly, in under ten minutes. You must, however, have a cryptocurrency wallet and Ether (ETH) on hand.
