Asset Tokenization: A Simulation Study.

Abstract

Asset exchanges (digital or real-world) seem to be one area that can benefit from blockchain technology. This means blockchain can be used to facilitate asset exchanges between parties without the need for an intermediary. In this research we look at how tokens issued on a platform (blockchain) can be used to represent and transfer ownership of an asset. This paper also looks into the important aspects to consider when tokenizing assets that may lead to the adoption of the process (i.e., parties choose blockchain as the primary option to exchange/transfer ownership of assets). Thematic analysis is instrumental in allowing us to code the data that was found - related to asset tokenization. Thus, relevant themes (aspects) are derived to give a high-level view of the process of asset tokenization. We have created a model to give a bird's eye view of tokenization as a whole; from this, we derived the critical success factors for the adoption of asset tokenization.