How much does tokenization cost?

Maciej Zieliński

05 Apr 2022
How much does tokenization cost?

Tokenization is a form of business digitization that is based on blockchain technology. It allows for the creation of tokens or coins and is used to assign their values to a given project. Due to the growth of the cryptocurrency sector and the adoption of blockchain technology, the potential for tokenizing business has increased. Smart contracts enabled full payment automation, which significantly accelerated the process of collecting funds and handling all types of ICO. Why is business tokenization worthwhile? What are the benefits and costs of tokenization? We're writing about it all below!

Tokenization of business

Many business entities are planning to proceed with the tokenization of their business activities. Unfortunately, few people know what the costs associated with this type of action are. In addition, the resulting tokens are often confused with cryptocurrencies. Although both forms are intangible, they use blockchain technology in different ways. Cryptocurrencies have their blokchain, and tokens use out-of-the-box solutions and classic technologies. In addition, it should be noted that tokens can be divided into 3 categories:

  • utility tokens
  • security tokens
  • payment tokens

Many companies use these forms to recapitalize their current business or to start a new business. This brings with it some benefits, but also costs.

What are the benefits and costs of tokenization?

The following is a list of the tangible and intangible benefits of implementing tokenization.

Tangible benefits and potential costs:

  • Legal aspects - Can legal costs save you money on the first day? No, but will it save the issuer and investors many millions of dollars in the event of a large collection? Definitely yes. Tokenization does not need lawyers to assign and link ownership in a project. Tokenization occurs automatically with smart contracts. However, you need to take into account that good tokenization needs to have a meaningful white paper, which often requires technical and legal knowledge. The potential cost of preparing a good white paper starts at $5 000.
  • Blockchain technology — using new technologies to implement your tokenization. We must remember that, depending on the law of the country concerned, additional costs related to the implementation of Know Your Customer (KYC) and AML procedures (prevention of money laundering) may arise. Other costs includes the potential requirements and licenses that are required for trading and collection of digital securities. Such costs are not schematic and may range from a few to several thousand dollars.
  • Automated compatibility — thanks to blockchain technology and smart contracts, we have a wealth of information that cannot be forged. Thus, we save money that we would otherwise have to spend on keeping financial accounting records. Lock-up periods, number of investors, and other policies and regulations may be embedded in or next to digital securities, allowing them to automatically track and enforce the law depending on the jurisdiction. Smart contracts and blockchain technology can save around $150.000 - $200.000 over the span of 5 years of running a business.
  • Time — this is an element which concerns the management’s focus on the tokenization process. Each member managing the project and working in it sacrifices his time and receives remuneration for it. The rates for an hour of a Blockchain Specialist‘s work start at $50. Smart contracts help us save a lot of money, but we need to be aware that implementing tokenization will cost between a few and several thousand dollars in employee remuneration.
  • Administration costs — these are office costs, customer service costs and documentation workflow costs, as well as costs related with any and all formalities. To conduct an ICO, you will need a service that involves organizing financial documents and collecting required licenses. The costs in this case can be between a few and several thousand dollars.
  • Distributions and payments — At the moment, in the case of traditional securities, if a company has to issue a dividend, it passes through transfer agents who usually send checks to investors. The process can be slow and inefficient. The use of blockchain technology allows a registered transfer agent to issue dividends to shareholders immediately with a single click. Additionally, tokenization occurs automatically thanks to smart contacts.
  • The main cost for business tokenization is IT. IT services are the most expensive issue in ICO. The software itself can cost tens of thousands of PLN. On top of that, there are also the costs related to expertise in IT, blockchain and payments. Each project must be individually designed graphically. That is why IT costs are so high.

Intangible benefits and associated costs

Intangible benefits of ICO will mentally help us manage financial collections more efficiently.

By paying the above mentioned ICO costs, we will achieve the following advantages:

  • Saving time – in the case of traditional securities, shares, bonds, etc. the time, money and energy invested in a business system that (in classic business) is slow and bureaucratic are a major problem. Running an ICO in combination with blockchain technology digitizes the whole process, eliminates paperwork and technical problems, and implements automated tools by using smart contracts.
  • Liquidity — The liquidity potential increases in the case of trading on the secondary market after a year, as opposed to waiting for a multi-annual exit, which is typical of traditional private offers. The entire process depends on specific legislation. Moreover, thanks to the market, crypto investors have the ability to trade all around the world 24 hours a day, 7 days a week, with settlements being conducted in a much more efficient and transparent process.
  • Transparency — thanks to public blockchain technology, the investment process becomes much more transparent. All transaction information can be stored on a blockchain. These records protect both the investor and the issuer. Investors can be certain that their data is not compromised at any stage of the ICO. In the case of issuers, shareholder management and non-variable reporting of transactions are available as part of internal control or in the case of any regulatory supervision that may occur.
  • Security — blockchain technology blocks the possibility of counterfeiting and stealing funds. In addition, each transaction is unchangeable and provides decentralized protection of personal data, making the whole process extremely secure.
  • Fractionalisation — While real funds can already be divided into fractions, the current method may be inefficient. Digital securities offer an opportunity to streamline the process of fractionalising assets and revenues generated by them.

Summary

The fixed costs associated with the execution of ICO are significant and can range from tens to more than $100 000. If the project is exceptionally robust, then “sky is the limit” as far as financing the project is concerned. Although initially ICO may seem an expensive solution, over the span of 5 years the costs of running a business may be 40% lower than those generated by using traditional solutions. Since tokenization is still the driving force for generating capital, we believe that the cost and additional benefits will replace the current methods. Blockchain technology has the significant ability to improve the way securities are issued, traded, and managed. As the market matures, the benefits will certainly increase over time. This does not mean that we must or should completely abandon the older processes that exist in today's capital markets. Instead, we can combine these two systems to create effective, efficient and user-friendly solutions for the next generation of securities. ICO can be expensive, but the benefits resulting from it certainly outweigh a simple factor like “finance”.

Tokens are a great solution for many customers. Using blockchain technology ensures increased security. In addition, modern tools, payment technologies and the overal payments industry, as well as solutions such as google pay, apple pay, digital wallets, credit cards and the overall payment network aid with conducting payment tokenization of every project. The payment process itself is incredibly simple and safe. Payment data, sensitive data and recurring payments require the token service provider to conduct payment processing in a professional manner.

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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?

Follow us to stay updated!

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