Tokenization Trends in 2023 – The Future of Tokenization

Karolina

27 Jun 2023
Tokenization Trends in 2023 – The Future of Tokenization

Through digital tokens on a blockchain, tokenization represents real-world assets or rights, and its rapid adoption is anticipated to influence the future of multiple industries. This groundbreaking technology has the capacity to transform how we invest, conduct transactions, and engage with assets.

It is vital to examine current trends in tokenization for 2023 and beyond as these advances unfold. Grasping the market size and possible financial implications, as well as the challenges and opportunities that come with tokenization will aid businesses and individuals in successfully navigating this transformative environment.

Key Aspects Shaping the Future of Tokenization

Traditional Asset Tokenization

Fractional Ownership Possibilities: The ability to divide assets into smaller units through tokenization permits fractional ownership. This broadens investment opportunities and makes them more accessible to a wider range of investors.

Liquidity Enhancement. By tokenizing traditional assets such as real estate, artworks, and intellectual property, liquidity can be unlocked, allowing for fractional trading. This leads to increased market efficiency and provides investors with expanded liquidity options.

Securities Tokens and Regulatory Compliance

Fundraising Approach Disruption: Compliant security tokens (STOs) serve as alternatives to conventional fundraising methods like initial public offerings (IPOs), leading to increased transparency, reduced intermediaries, and automated compliance – ultimately making capital markets more efficient and accessible.

Regulatory Compliance and Safeguarding Investors: To guarantee investor protection and legal compliance, tokenization calls for solid regulatory frameworks. Adoption of clear guidelines and standards for security tokens and their issuance will promote trust in tokenized assets.

Applications of Decentralized Finance (DeFi)

Innovations in Financial Products. The growth of decentralized finance (DeFi) applications is propelled by tokenization, which leverages blockchain technology and smart contracts to create new financial products and services. DeFi platforms facilitate lending, borrowing, and trading with improved efficiency, accessibility, and programmability.

Financial Services Democratization: By eliminating intermediaries, DeFi applications offer access to financial services for underserved communities, promoting financial inclusion while giving individuals more control over their financial assets and transactions.

Data Privacy Enhancement & Self-Sovereign Identities

Data Privacy Improvement. Individual data privacy can be improved through tokenization, enabling individuals to tokenize their personal information and have more control over data sharing decisions.

Self-Sovereign Identity Development: Tokenization contributes to the creation of self-sovereign identity solutions. Tokenized identity attributes allow for secure authentication and streamlined identity verification processes while maintaining control over personal data.

Interoperability & Standardization

Effortless Token Transfer: With the expansion of tokenization, interoperability between various blockchains and tokenization protocols will be essential. Implementing these interoperability standards will facilitate the seamless transfer and exchange of tokens among different platforms, ultimately promoting an efficient, connected tokenized ecosystem.

Tokenization Protocol Standardization: Industry standardization of tokenization protocols enhances compatibility, boosts efficiency, and encourages wider adoption. Standardized protocols foster interoperability, allowing various platforms to recognize and utilize tokens.

These essential factors will guide the development of tokenization in the future, propelling its expansion and transforming industries by increasing liquidity, assisting with regulatory compliance, encouraging decentralized finance innovation, improving data privacy, and fostering interoperability.

Market Size and Projections

As the tokenization market undergoes considerable growth, it is anticipated to continue expanding in the next few years. Numerous reports and analyses reveal the present market size and future projections, which are based on tokenization adoption and potential.

Growth of the Tokenization Market

Markets & Markets' report discloses that in 2021, the tokenization market was worth approximately $2.3 billion. With an average annual growth rate of 19%, it is predicted to attain a value of $5.6 billion by 2025.

Positive Projections

  • Tokenized Assets Possibly in Trillions by 2030:

Analysts and experts in the industry have an optimistic outlook on tokenized assets' potential. By 2030, they anticipate that the volume of tokenized assets could be within the trillion-dollar range.

  • Security Token Trading Volumes:

In 2021, security tokens reached trading volumes of around $4.1 trillion. Forecasts suggest that by 2030, these volumes could skyrocket to $162.7 trillion. The significant growth can be ascribed to the rising adoption of tokens across various sectors, such as music, fashion, retail, sports, film, etc.

  • Predicted Global NFT Market Value:

Considerable growth is expected in the non-fungible token (NFT) market, a specific type of tokenization for unique digital assets. The global NFT market value projected to reach $231 billion by 2030.

  • Tokenized Security Assets Comprising 10% of Global GDP:

By 2030, Boston Consulting Group anticipates that around 10% of global Gross Domestic Product (GDP) could be represented by tokenized security assets. This prediction underscores the potential influence of tokenization on the conventional securities market.

It is crucial to recognize that these estimates are dependent on various factors and market forces. Actual growth and market size might differ depending on adoption rates, regulatory changes, technological innovations, and market trends.

The Evolution of Assets

The anticipated impact of asset tokenization is a transformation in asset management, investment, and transactions. The future of assets lies in the development of inventive business models enabled by the decentralized nature of Distributed Ledger Technology (DLT) and blockchain.

Liquidity and Accessibility Enhancement

Capital Unlocked. Significant amounts of capital, currently trapped in illiquid assets within conventional systems, have the potential to be unlocked through tokenization. The process enhances liquidity by fractionating assets and enabling easy transferability, thus expanding investment possibilities for more participants.

Barrier Reduction: Tokenization reduces entry barriers for traditionally hard-to-reach assets. Retail investors now have access to assets such as real estate, artworks, or intellectual property with smaller investments, fostering financial inclusivity and democratizing investment opportunities.

Transactions with Efficiency and Security

Simplified Transaction Processes: Tokenization leads to faster, more efficient transaction processes. By utilizing decentralized networks, participants can complete asset transactions within minutes, decreasing dependence on intermediaries and eliminating manual paperwork.

Cost Efficiency: Tokenization reduces transaction costs in terms of both time and money. Distributed architecture-facilitated automated processes decrease administrative overheads and optimize asset transfers and ownership, resulting in cost savings for all involved parties.

Ownership Fractionalization and Diversification

Opportunities for Diversification: Tokenization offers investors more chances to diversify their holdings. They can effortlessly invest in fractions of numerous assets, effectively diversifying their portfolios and managing risk.

Fractionalized Ownership: Tokenization allows multiple investors to obtain fractional ownership of an asset. This model promotes inclusivity and enables smaller investors to participate in markets that were previously inaccessible.

Verification of Transparency and Provenance

Improved Transparency. Asset transaction transparency bolstered by tokenization. Blockchain technology guarantees that transaction records are unalterable and easily auditable, which increases trust and minimizes fraud potential.

Provenance Tracking: Tokenization permits the monitoring of an asset's provenance throughout its existence. This capability is especially significant for assets like artworks and luxury items, where verifying authenticity and ownership history is essential.

Novel Investment Possibilities

Groundbreaking Business Models: Tokenization lays the groundwork for cutting-edge business models that capitalize on the advantages of blockchain technology. These models encompass peer-to-peer lending platforms, decentralized marketplaces, and innovative investment instruments, giving investors a wider array of investment opportunities.

New Asset Classes: Tokenization goes beyond traditional assets to spawn new asset classes. Digital assets, such as virtual real estate, digital art, and in-game items, could become valuable investment opportunities in the future.

It is worth noting that adapting and evolving regulatory frameworks will be necessary for the future of assets to accommodate technological advancements. Policymakers and regulators hold a critical role in developing suitable safeguards and ensuring investor protection as well as overall economic stability in this changing tokenized environment.

Challenges and Solutions for the Future

Tokenization shows immense potential for revolutionizing a variety of industries. However, it faces hurdles that must be addressed to allow for widespread adoption and success. Some future challenges and their possible resolutions include:

Frameworks for Regulation

Challenge: A continually developing regulatory landscape exists for tokenization, necessitating well-defined and all-encompassing regulations to guarantee investor safety and maintain market integrity.

Solution: To develop regulatory frameworks that balance innovation with risk reduction, policymakers should cooperate with industry experts. These frameworks ought to offer clarity on compliance prerequisites, security benchmarks, and legal responsibilities.

Standards and Interoperability

Challenge: Hindered by the absence of universally accepted tokenization standards and a lack of interoperability between blockchains, the smooth transfer and exchange of tokens is inhibited.

Solution: Establishing interoperability protocols and tokenization standards through industry collaborations and standardization endeavors can enable compatibility and connectivity across diverse platforms, nurturing a more effective and interconnected tokenized environment.

Privacy and Security

Challenge: Tokenization's decentralized nature presents new risks to security and privacy, such as unauthorized access to personal data, data breaches, and hacking.

Solution: To safeguard user data and tokenized assets, strong cybersecurity measures—including encryption techniques, identity management solutions, and secure smart contract development—must be employed. Privacy-preserving technologies like zero-knowledge proofs can facilitate selective disclosure of personal information while retaining privacy.

Technical Infrastructure and Scalability

Challenge: As tokenization gains popularity, challenges may arise related to handling a high volume of transactions and maintaining efficiency in blockchain networks.

Solution: Research and development on layer 2 protocols, sidechains, sharding, and other blockchain scalability solutions can address these scalability issues. Furthermore, tokenized systems will grow and scale alongside advances in blockchain technology and infrastructure.

Conclusion - Future of Tokenization

Tokenization stands on the brink of revolutionizing various sectors through unlocking liquidity, amplifying accessibility, and simplifying asset transactions. While the future of tokenization brims with potential, it concurrently poses hurdles such as regulatory frameworks, interoperability, security, privacy, and scalability. The partnership among all stakeholders proves crucial in forging a lasting and all-encompassing tokenized ecosystem that enriches individuals, enterprises, and the worldwide economy. Tokenization is clearing the path for an invigorating period of asset administration and investment possibilities.

Nextrope Tokenization Launchpad Platform

Nextrope Launchpad Platform is a White Label solution in a Software-as-a-Service model that helps you launch your project within a month and fundraise with Initial Coin Offering (ICO) or Security Token Offering (STO).

Our platform allows you to participate in the broad financial market of digital assets. Expand your reach and find investors globally. Tokenize your project and start raising capital within a month!

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Master UI Component Creation with AI: The Ultimate Guide for Developers

Gracjan Prusik

24 Mar 2025
Master UI Component Creation with AI: The Ultimate Guide for Developers

Introduction

Modern frontend development is evolving rapidly, and creating UI components with AI tools is helping developers save time while enhancing interface quality. With AI, we can not only speed up the creation of UI components but also improve their quality, optimize styles, and ensure better accessibility.

This article explores how creating UI components with AI is transforming frontend development by saving time and improving workflows. Specifically, we will discuss:

  • Generating components from images,
  • AI for style analysis and optimization,
  • Automatic style conversion and code migration,
  • AI in generating UI animations.

Creating UI Components with AI from Images

One of the interesting applications of AI in frontend development is the ability to generate components from an image. AI can recognize the structure of the interface and generate HTML/CSS or JSX code that matches the provided image. One of the most popular tools for UI creation is Lovable.

For testing, let's see how the tool performs in creating a simple contact form from the page you are currently on, which is Nextrope.

Query:

"Recreate the image I've sent you in Next.js using CSS."

Sample image used in the query:

The result received:

Tworzenie komponentów UI - Wygenerowany widok

Lovable did an excellent job transforming the image into code. The view is fully responsive. It’s important to remember that the more precise the request, the better the AI will replicate the expected view. However, even with a simple command, the tool performed surprisingly well.

Of course, AI has its limitations. It still makes quite a few mistakes. The generated code still requires review and fixes from the developer, but in some cases, the entire process is significantly sped up—correcting the code often takes less time than creating the component from scratch.

Optimizing UI Components with AI Tools for Style Improvements

This problem of inaccurate code reproduction by AI can be partially addressed by using it to analyze and improve styles. Tools like ChatGPT, DeepSeek and Claude are capable of not only generating code but also diagnosing CSS errors and suggesting why a particular style might not be working as expected.

Simple example: Why is the div not centered?

Query: "Why is this div not centered?"

AI analyzes the code and provides the following response:

Problem: The parent container does not have a defined width or display: flex.
Solution: Add the appropriate styles to the parent container.

.parent {
  display: flex;
  justify-content: center;
  align-items: center;
  width: 100vw;
  height: 100vh;
}

AI for Automatic Style Conversion and Code Migration in UI Components

AI can assist with style conversion between different technologies, such as transferring code from traditional CSS to Styled Components or Tailwind CSS.

Let's assume we have a style written in traditional CSS:

.button {
  background-color: blue;
  color: white;
  padding: 10px 20px;
  border-radius: 5px;
  transition: background-color 0.3s ease;
}

.button:hover {
  background-color: darkblue;
}

We can use AI for automatic conversion to Styled Components:

import styled from "styled-components";

const Button = styled.button`
  background-color: blue;
  color: white;
  padding: 10px 20px;
  border-radius: 5px;
  transition: background-color 0.3s ease;

  &:hover {
    background-color: darkblue;
  }
`;

export default Button;

AI can also assist in migrating code between frameworks, such as from React to Vue or from CSS to Tailwind.

This makes style migration easier and faster.

How AI Enhances UI Animation Creation

Animations are crucial for enhancing user experience in interfaces, but they are not always provided in the project specification. In such cases, developers have to come up with how the animations should look, which can be time-consuming and require significant creativity. AI, in this context, becomes helpful because it can automatically generate CSS animations or animations using libraries like Framer Motion, saving both time and effort.

Example: Automatically Generated Button Animation

Suppose we need to add a subtle scaling animation to a button but don't have a ready-made animation design. Instead of creating it from scratch, AI can generate the code that meets our needs.

Code generated by AI:

import { motion } from "framer-motion";

const AnimatedButton = () => (
  <motion.button
    whileHover={{ scale: 1.1 }}
    whileTap={{ scale: 0.9 }}
    className="bg-blue-500 text-white px-4 py-2 rounded-lg"
  >
    Press me
  </motion.button>
);

In this way, AI accelerates the animation creation process, providing developers with a simple and quick option to achieve the desired effect without the need to manually design animations from scratch.

Summary

AI significantly accelerates the creation of UI components. We can generate ready-made components from images, optimize styles, transform code between technologies, and create animations in just a few seconds. Tools like ChatGPT, DeepSeek, Claude and Lovable are a huge help for frontend developers, enabling faster and more efficient work.

In the next part of the series, we will take a look at:

If you want to learn more about how AI is impacting the entire automation of frontend processes and changing the role of developers, check out our blog article: AI in Frontend Automation – How It's Changing the Developer's Job?

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AI in Real Estate: How Does It Support the Housing Market?

Miłosz Mach

18 Mar 2025
AI in Real Estate: How Does It Support the Housing Market?

The digital transformation is reshaping numerous sectors of the economy, and real estate is no exception. By 2025, AI will no longer be a mere gadget but a powerful tool that facilitates customer interactions, streamlines decision-making processes, and optimizes sales operations. Simultaneously, blockchain technology ensures security, transparency, and scalability in transactions. With this article, we launch a series of publications exploring AI in business, focusing today on the application of artificial intelligence within the real estate industry.

AI vs. Tradition: Key Implementations of AI in Real Estate

Designing, selling, and managing properties—traditional methods are increasingly giving way to data-driven decision-making.

Breakthroughs in Customer Service

AI-powered chatbots and virtual assistants are revolutionizing how companies interact with their customers. These tools handle hundreds of inquiries simultaneously, personalize offers, and guide clients through the purchasing process. Implementing AI agents can lead to higher-quality leads for developers and automate responses to most standard customer queries. However, technical challenges in deploying such systems include:

  • Integration with existing real estate databases: Chatbots must have access to up-to-date listings, prices, and availability.
  • Personalization of communication: Systems must adapt their interactions to individual customer needs.
  • Management of industry-specific knowledge: Chatbots require specialized expertise about local real estate markets.

Advanced Data Analysis

Cognitive AI systems utilize deep learning to analyze complex relationships within the real estate market, such as macroeconomic trends, local zoning plans, and user behavior on social media platforms. Deploying such solutions necessitates:

  • Collecting high-quality historical data.
  • Building infrastructure for real-time data processing.
  • Developing appropriate machine learning models.
  • Continuously monitoring and updating models based on new data.

Intelligent Design

Generative artificial intelligence is revolutionizing architectural design. These advanced algorithms can produce dozens of building design variants that account for site constraints, legal requirements, energy efficiency considerations, and aesthetic preferences.

Optimizing Building Energy Efficiency

Smart building management systems (BMS) leverage AI to optimize energy consumption while maintaining resident comfort. Reinforcement learning algorithms analyze data from temperature, humidity, and air quality sensors to adjust heating, cooling, and ventilation parameters effectively.

Integration of AI with Blockchain in Real Estate

The convergence of AI with blockchain technology opens up new possibilities for the real estate sector. Blockchain is a distributed database where information is stored in immutable "blocks." It ensures transaction security and data transparency while AI analyzes these data points to derive actionable insights. In practice, this means that ownership histories, all transactions, and property modifications are recorded in an unalterable format, with AI aiding in interpreting these records and informing decision-making processes.

AI has the potential to bring significant value to the real estate sector—estimated between $110 billion and $180 billion by experts at McKinsey & Company.

Key development directions over the coming years include:

  • Autonomous negotiation systems: AI agents equipped with game theory strategies capable of conducting complex negotiations.
  • AI in urban planning: Algorithms designed to plan city development and optimize spatial allocation.
  • Property tokenization: Leveraging blockchain technology to divide properties into digital tokens that enable fractional investment opportunities.

Conclusion

For companies today, the question is no longer "if" but "how" to implement AI to maximize benefits and enhance competitiveness. A strategic approach begins with identifying specific business challenges followed by selecting appropriate technologies.

What values could AI potentially bring to your organization?
  • Reduction of operational costs through automation
  • Enhanced customer experience and shorter transaction times
  • Increased accuracy in forecasts and valuations, minimizing business risks
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Want to implement AI in your real estate business?

Nextrope specializes in implementing AI and blockchain solutions tailored to specific business needs. Our expertise allows us to:

  • Create intelligent chatbots that serve customers 24/7
  • Implement analytical systems for property valuation
  • Build secure blockchain solutions for real estate transactions
Schedule a free consultation

Or check out other articles from the "AI in Business" series