What is tokenization and how can you tokenize your ideas with InvArch?

InvArch is an intellectual property and decentralized development network for Web 3.0. For the first time in history, InvArch allows people to tokenize their ideas! Even more remarkable is that InvArch simultaneously provides the infrastructure so that users can bring these ideas to life. InvArch is an innovative blockchain that has no analogues among other networks and projects presented today, allowing people around the world to do things that were not possible before! Using InvArch, one person can bring his great idea to life, and another can help him with this using his knowledge and skills!

But what is tokenization and how to use it? Now I will explain to you how the project works.

The global financial instruments market consists of three main types of instruments: stocks, debt instruments and derivatives. For a large number of companies, the possibility of attracting financing on the market through the placement of traditional financial instruments is limited or even impossible. The main obstacles are over-regulation of the market, lack of funding sources, a large number of intermediaries, high costs for the organization of placement of instruments. It may take from a year to three years to prepare a company for an IPO, and the results in the form of the volume and value of the funds raised will be very doubtful.

Tokenization is the process of transforming the issuance of assets and transactions with them into a digital field. A token issued in connection with a particular type of asset is a new type of asset that exists in the digital field. You can tokenize any asset class, both illiquid and liquid — stocks, debt instruments, metals, intellectual property, real estate, etc. When tokenizing, it is important to ensure that the token is “linked” to a real asset. Otherwise, the cost of such a token will tend to zero.

Tokenization of illiquid assets allows achieving the same economic effect as securitization. That is, an illiquid asset is transformed into a liquid one, which makes it possible to attract financing in the market.

Tokenization is aimed at realizing the possibility of partial sale of an object, for example, real estate, on the side of its owner who wants to attract financing, while retaining the right to use the asset. It also allows the investor to purchase a part of the asset through the purchase of a token, which increases the liquidity of the latter.

The token issue and operations with it are carried out on the blockchain through the execution of a number of smart contacts. This ensures full transparency of operations, cryptographic protection, high settlement speed, the ability to conclude transactions for large amounts and high liquidity of such an asset.

It is obvious that tokenization of classical types of assets as a new way of attracting financing has a number of significant advantages that contribute to the effective development and functioning of capital markets. However, the scalability of the token market, the ability to increase the volume of the capital market and increase its liquidity are determined not only by the introduction of innovative solutions in the field of digital technologies, but also by the development of legislative regulation.

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