The transformation of assets into cryptocurrencies is a process very similar to that in the traditional market. Just as a bakery transforms ingredients into a value-added product, the crypto-asset becomes digitally represented using blockchain technology.

Blockchain is a decentralized registration system that digitally records public and immutable information in blockchains, acting as a “ledger”.

In this way, the technology allows transactions to take place in a secure and transparent manner – which increases the trust of participants and reduces the need for intermediaries.

It is also worth remembering that there are different types of utility tokens. Each one has a different category. This means that they can be designed to perform a variety of functions, allowing access to products, services, or be used as a means of payment.

Advantages of asset transformation

The process of asset transformation is a form of capitalization for companies, as well as enabling transparency in traceability processes and democratizing access to products and services, but it’s not all plain sailing. There are also factors that need to be considered when choosing this path.

Benefits:

The transformation of assets into cryptocurrencies allows exchanges to take place in a more economical and agile manner, given the possibility of removing intermediaries from the process – such as banks and brokers.

Another advantage of this process permeates the possibility of an asset being divided into fractions, which makes it easier for different investors to have stakes in valuable assets. In this case, the security token allows people from different parts of the world, with different purchasing power, to have access to the asset.

Major challenges of asset transformation

On the other hand, it can also bring challenges. Among them is the lack of regulation, which is still one of the main challenges in the crypto world, since the applicable laws and norms are still scarce in Brazil and vary from country to country.

Every project starts with the legal sector, even in the creation of a cryptocurrency. If the activity behind a company is already legalized, we have a legal precedent to work with.

It is also worth remembering that the value of a cryptocurrency is volatile. This can bring frustration to investors who are not prepared for this market. Therefore, it is necessary to keep an eye, be calm and patient.

Good business!!!

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