Other utilities

Crypto Forex Services Trade cryptocurrencies, including Bitcoin and Ethereum, with fixed spreads, low margin, competitive financing and reliable trade executions at FOREX

The tokenization of assets is the process of issuing security tokens (a type of blockchain token) representing real digital tradable assets. Like an initial coin offering (ICO), security tokens are issued via a security token offering (STO) process, through which investors can buy payment, equity or utility tokens.

However, it is essential to note that tokenization differs from the securitization of assets. For example, the securitization process involves pooling specific illiquid asset classes so they can be repackaged into securities. So, what type of assets can be tokenized? Virtual or real assets can nearly all be converted into digital tokens through tokenization. For instance, security tokens issued via the STO process may represent an investment fund, company shares or real estate ownership.

GameFi is a combination of the words ‘game’ and ‘finance’, and was first coined in a 2020 tweet by Andre Cronje, the CEO of Yearn Finance. GameFi mixes blockchain technology, non-fungible tokens (NFTs), and game mechanics to create a virtual environment in which players may participate and receive tokens.

Until recently, video games were housed on centralised servers, giving developers and publishers the rights to everything within their games. This meant that players had no actual ownership or control over any of the digital items accumulated over hours — or years — of gameplay. These items range from weapons and costumes (also known as ‘skins’) to avatars and virtual lands — very few of which had any value outside of the game. As such, there was no real way for players to get compensated for their time spent online or share in the value of their earned in-game assets without following the route of professionalism (such as vlogging, Twitch streaming, or playing competitively in tournaments).

The metaverse is a network of shared, immersive virtual worlds where people can connect with friends, create and play games, work and shop. You can think of the metaverse as a cyberspace, or an evolved, three-dimensional internet where logging in isn’t necessary. It may also incorporate elements of virtual and augmented reality.

At the moment, the idea of one universally acknowledged metaverse is still speculative — the stuff of science fiction. But that hasn’t stopped some tech giants from building metaverse-like experiences, such as virtual fashion shows, live concerts and workspaces.