By Lumai Mubanga
Defined on the coinmarketcap.com website as an open-source protocol, Ox (ZRX) uses smart contracts to enable peer to peer exchange of tokens. There is a strong belief by the OX creators that everything will eventually be tokenized. As long as you can own it, they say, you can convert it into tokens. For example, all transactions, assets, and anything that has value will eventually be converted into tokens. The belief is that this will bring about a more transparent society that is efficient and more equitable.
With all the advantages that come with owning crypto assets, the OX philosophy is that all assets should be tokenized. But what are the benefits of doing that?
If you want to own real estate for example, you may have to undertake all transactions using cryptocurrency tokens. How so? If you purchase real estate, the proof of ownership currently a paper contract between you and the seller. OX believes that all this will change. Instead of paper, the only proof of ownership you will eventually have is a token, held on the public blockchain. If that could be possible, then everything including money, stocks, video games and estates can be tokenized.
But what are the most outstanding benefits of owing tokens, let on the possibility of tokenizing everything? There are basically three reasons that surpass tangible objects:
- Ease of storage
There is nothing that is so easy to store than tokens. You do not need any third party entity to store your tokens. You have a number of options to store them such as desktop wallets, hardware and paper wallet. The user need to do a research to ascertain the best way.
- Ease of transfer
Unlike hard cash that requires a long and sometimes slow process to transfer, tokens are easily transferred from one owner to the other within seconds or a few minutes. You can also buy and sell them as quickly as possible. This applies to both local and international transfers.
- Access to global markets
Anyone living anywhere can and will have access to a global market easily. It will not only be a preserve of those with international connections. For example, selling a real estate currently will require a lot of paperwork, lawyers, and title companies, a slow and expensive process. But if the estate was tokenized, that will only take a few minutes. The seller and the buyer will simply swap ownership through the exchange of a smart contract. The seller will get the cryptocurrency and the buyer will get the token representing the value of the estate. This will be done securely without all the expensive intermediaries.
All in all, tokenizing assets will provide for faster, secure, and access to a global market as never before.