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.


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.

Most viewed

Never miss a story

Stay updated about Nextrope news as it happens.

You are subscribed

What is Account Abstraction?


10 Nov 2023
What is Account Abstraction?

Account abstraction is a new way of thinking about how users interact with blockchains. Instead of using traditional externally owned accounts (EOAs), account abstraction allows users to create and manage their accounts using smart contracts. This has a number of potential benefits, including improved security, enhanced privacy, and increased flexibility.

What is account abstraction?

Account abstraction is a concept that, at its core, aims to simplify the user's interaction with blockchain networks. It is a transformative approach that seeks to mask the technicalities of blockchain operations from end-users. It is making transactions as straightforward as sending an email. Account Abstr. allows users to interact with the blockchain without worrying about the underlying technical details.

How does account abstraction differ from the traditional model?

In the traditional account model, each user has an EOA. EOAs are controlled by private keys, which must be kept secret in order to protect the user's funds. Acc. abstraction allows users to create and manage their accounts using smart contracts.

Historical Context

The journey towards acc. abstraction began with the first generation of blockchain technologies, characterized by their "one-size-fits-all" approach to account management. Bitcoin, for instance, introduced the concept of accounts and transactions in a form that was accessible to tech-savvy individuals but remained perplexing to the layperson. Ethereum expanded on this by introducing smart contracts, which opened the door to programmable transactions but did not alter the fundamental account structure. The idea of acc. abstraction has been discussed in the Ethereum community for several years as a part of various Ethereum Improvement Proposals (EIPs), particularly as a feature to be potentially implemented in Ethereum 2.0. It is a direct response to the need for a more versatile and user-centric design that can cater to a broader audience and spur the widespread adoption of blockchain technology.

The Technicalities of Account Abstraction

Account abstraction is not merely a theoretical construct but a technical innovation with specific mechanisms underpinning its operation. In essence, it alters the way transactions are initiated and executed within a blockchain network.

How Account Abstraction Works

Under traditional blockchain models, initiating a transaction involves an externally owned account (EOA) signing a transaction with a private key. This transaction is then broadcast to the network for validation and inclusion in the blockchain. Account abstraction, however, replaces this process with a more flexible one. Here, every account is a smart contract, and transactions are messages sent through these contracts. These smart contracts can encode complex rules for transaction validation, beyond what EOAs can do, such as multi-signature requirements or conditional transactions based on certain triggers.

The technical crux of account abstraction lies in the smart contract’s ability to define its own conditions for transaction execution. This means that user accounts can have unique security protocols or automated operations without the user needing to understand the underlying smart contract code.

Hey! Are you interested in the latest technologies in the blockchain area? be sure to read the article 'Top Zero-Knowledge Proof Projects to watch in 2023'

The Benefits of Account Abstraction

The implications of account abstraction are profound, offering a range of benefits that can enhance the blockchain experience for users and developers alike.

Improved User Experience

One of the most significant advantages of account abstraction is the improvement it brings to user experience. By abstracting away the complexities of key management and transaction rules, it presents a more intuitive interface for users.

Enhanced Security Features

Account abstraction also allows for the implementation of advanced security measures. Since each account can define its own logic, users can tailor their security settings to their specific needs. For instance, one might set up an account that requires additional verification for transactions exceeding a certain value or restricts withdrawals to certain addresses.

Future Implications

The future implications of account abstraction are vast. As the technology matures, it could become a standard feature of blockchain networks, potentially making the current distinction between user accounts and smart contracts obsolete. This could lead to a new wave of blockchain applications that are both powerful and accessible, bringing us closer to the vision of blockchain technology as a seamless part of everyday life.

Challenges and Considerations

Technical Limitations

One of the primary technical challenges of Acc. abstraction lies in its integration with existing blockchain protocols. Current networks are optimized for the EOA model, and introducing a new account structure necessitates significant changes to the core protocol. This includes modifications to the way transactions are propagated in the network, how gas fees are calculated, and how the state of the blockchain is managed. Ensuring that these changes do not compromise the network's performance or security requires careful planning and extensive testing.

Compatibility with Current Systems

Another consideration is the compatibility of account abstr. with the vast ecosystem of existing blockchain applications and services. Wallets, exchanges, and other services have been built around the traditional account model. Transitioning to an acc. abstraction model will require these services to update their infrastructure, which may be a complex and resource-intensive process. Furthermore, there is a need for standardization across the industry to ensure that different implementations of account abstr. can work seamlessly together.


Acc. abstraction represents a significant leap forward in the quest for a more user-friendly blockchain experience. By streamlining the transaction process and offering enhanced security features, acc abstraction has the potential to make blockchain technology more accessible to a broader audience. However, the path to widespread adoption is not without its obstacles. Technical challenges and compatibility issues must be carefully navigated to integrate it into the existing blockchain landscape.

Key Takeaways

How to Add Gnosis Chain to MetaMask: A Simple Tutorial


03 Nov 2023
How to Add Gnosis Chain to MetaMask: A Simple Tutorial

As the cryptocurrency ecosystem expands, there is an increasing need for various blockchains with distinct capabilities. Gnosis Chain enters the scene, offering a selection of unique characteristics. By integrating Gnosis Chain with MetaMask, users can access a more comprehensive array of decentralized services. We will walk you through the steps to add Gnosis Chain to your MetaMask wallet in this tutorial.


Setting up MetaMask

Before exploring the integration of Gnosis Chain, it is crucial to have MetaMask installed and operational:

  • Download and Install: If you have not done so already, visit the official website to download and install the MetaMask browser extension.
  • Setup Account: After completing the installation, create your account and make sure to remember the provided seed phrase. This phrase serves as your primary means for account recovery, so keep it secure.
  • Secure Your Account: Protecting your MetaMask account is of utmost importance. Use a robust password and never disclose your seed phrase to anyone.

Gnosis Chain

It is always helpful to have a basic understanding before incorporating any new blockchain into your wallet:

  • Gnosis Chain Overview: Gnosis Chain, a rising star in the blockchain world, brings a range of decentralized solutions to the table, such as prediction markets and decentralized trading platforms.
  • Benefits & Features: Among Gnosis Chain's main selling points are its accelerated transaction speeds and potentially lower fees when compared to congested networks.

Tutorial: How to Add Gnosis Chain to MetaMask

In the top right-hand corner of your browser, you'll find the wallet. If pinned, click on the MetaMask fox icon; if not, click the three dots in the top-right corner. The following screen will appear:

An option to expand the wallet to a new browser page is available by clicking "Expand view:"

This action will launch MetaMask in a new tab:

By clicking on the ‘Ethereum mainnet’ in the top left corner, you can add another network. Click ‘Add Network’

Choose option ‘Add a network manually’

Then, input the information below:

Network Name: Gnosis Chain formerly xDai


ChainID: 100

Symbol: XDAI

Block Explorer URL:

After saving the settings, Gnosis Chain will be added to your network.

The Benefits of Adding Gnosis Chain to MetaMask

With multiple blockchains becoming more common, integrating Gnosis Chain with MetaMask offers numerous advantages:

Expanded Capabilities: Accessing Gnosis Chain through MetaMask opens up a collection of exclusive applications and features inherent to this particular blockchain, which may include unique dapps or cutting-edge financial products.

Diversification: The crypto domain is extensive and constantly growing. By incorporating various chains like Gnosis into MetaMask, you broaden your potential investment opportunities and decentralized application experiences, ensuring no opportunities are missed.

Speed & Cost-Effectiveness: Network congestion and high gas fees on established platforms like Ethereum can discourage many users. Gnosis Chain's architecture has the potential to provide relief through quicker transaction times and more affordable fees.

In summary, as the possibilities within the crypto sphere continue to evolve, tools like MetaMask grant users access to this expanding world. By adding chains like Gnosis, users can stay ahead in this decentralized revolution.


By bridging platforms like Gnosis Chain with accessible tools like MetaMask, individuals not only amplify their engagement with decentralized applications but also fortify their position in this expansive realm. The integration of Gnosis Chain to MetaMask epitomizes the evolution of the crypto landscape – a testament to its ever-growing diversity and potential. As we continue to delve deeper into the decentralized future, tools and integrations like these will undoubtedly play a pivotal role in shaping our digital experiences and opportunities. Whether you're seeking more efficient transactions, diverse dapp interactions, or simply a broader understanding of the crypto ecosystem, this guide's steps open doors to a new horizon.