Tokenization will create a new class of alternative assets

Maciej Zieliński

18 Jan 2021
Tokenization will create a new class of alternative assets

We have already covered the tokenization of companies and real estate extensively on the blog. We can also apply similar solutions to alternative assets. Why does it even make sense to tokenize cars, works of art or wine? 

The need for portfolio diversification and the comfort that comes with owning uncorrelated assets are nothing new in the investment world. But it is in times of market stress that their role becomes particularly important. Just look at last summer's record gold price. Alternative assets, however, have far more faces than just metals and precious stones. Cars, art or exclusive liquors not only satisfy people's whims, but can also turn out to be a safe deposit of funds and even bring profits from investments. Why is it worth tokenising them?

Tokenisation of cars

Exotic cars have played an important role in the world of digital content for years. However, anyone who thinks that their only use is to highlight the owner's status is mistaken. Research shows that they can be an extremely worthy investment alternative. According to a Knight Frank report, investment in vintage cars returned over 330% in the 10 years to 2017. Far outperforming other alternative assets such as diamonds, jewellery and art in this regard. However, for obvious reasons, not everyone can afford it. Such a car remains simply too expensive for most. But what if we could only acquire part of it? 

CT1, which is the result of a collaboration between investment platform CurioInvest and digital asset exchange MERJ Exchange, is one of the latest tokens whose value is secured by collector cars. According to both companies, it is the tokenization of luxury goods that will make them accessible to a wider range of investors. 

" If we look at works of art or collector cars we see that they have historically been seen as safe havens for investment, " says Fernando Verboonen, founder and CEO of CurioInvest. " Today they are held by very few. By introducing new technology, we are enabling everyone to fully benefit from the features and functions that define this asset class as a whole."

An investment for everyone

Last year, companies released 1.1 million tokens secured by the $1.1 million Ferarri F12TDF CTI. For less than 4 zlotys we could become shareholders in a supercar worth almost 4 million, whose value in the coming years will probably only increase. The project assumes tokenization of as many as 500 collector cars with a total value of over 200 million dollars. The machines are to be stored and maintained in a garage owned by CurioInvest in Stuttgart. When buying tokens, we do not have to worry about their transport or maintenance. 

Currently, one of the main problems in the secondary sale of exotic cars is the multitude of diverse and complex price models. Often, due to the lack of standardisation and regional differences, no one is able to determine how much a model is really worth. By harnessing the potential of blockchain technology, tokenization will allow the current market value to be adjusted in real time. This will create a number of new opportunities and simplifications, especially in the insurance industry, where it is necessary to accurately determine the value of a car. 


In 2018, sales on the global art market reached $67 billion. Which represents an increase of 6.3% over 2017 and 12% over 2016. For years, post-war and contemporary art has remained the most important sector in terms of value. Over the past 20 years, works from these periods have produced a compound annual return (CAR) that exceeds the S&P's total return by 10.7%. However, the growing art market remains highly illiquid and, like collector cars, accessible only to a limited number of wealthy individuals and institutions. 

Several token projects have recently emerged that seek to change this. The first of these, Maecenas, in 2018 began tokenizing artworks by launching the groundbreaking work of American pop art pioneer Andy Warhol - '14 Little Electric Chairs'.  By basing the sale on blockchain, it was able to attract hundreds of investors previously unconnected to the art world, helping to increase the valuation of the work from $1.7 million to $5.6 million. 

Tokenization significantly increases the liquidity of investment in art - we are trading tokens, only "part" of the work, so we do not have to look for a buyer for the whole. It can also bring numerous benefits to the artist himself. If the artist decides to tokenize his work, he will both earn from the sale of part of the tokens and retain a stake in the whole, allowing him to profit from the increase in value of his work.

Tokenisation of collector wines

Investing in wine for the uninitiated may sound like a weak joke. Nothing could be further from the truth. Collectible wines, as investment assets, are characterised by a high rate of return and significant resistance to economic fluctuations. While the truthfulness of the statement that the older the wine the better is limited - once it reaches full maturity, the quality starts to decrease, there is no doubt that the price of rare examples increases over time.


There are a number of factors that guarantee the constancy of this trend. First of all, connoisseurs consider the grape harvest vintage as a factor defining the characteristics of individual bottles, and this vintage is unique - there will not be another 1945 or 2010. 

The growing value of the land on which grapes are grown is also of no small importance. The average price of a hectare of vineyard in the famous Champagne exceeds 1 million euros, which is still a modest amount compared to the 15 million you have to pay for the best Grand Cru in Burgundy. Often, within just one hilltop, there are several parcels with different growing conditions. The differences between them may seem insignificant to the layman, but to the connoisseur they are often colossal. For example, the fruit for the auction record-breaking Domaine de la Romanée-Conti La Romanée Conticomes from a plot of just 1.81 hectares. Demand for rare wines continues to grow (largely due to growing interest in China) while the number of prestigious plots is limited and fixed.

In addition, ongoing climate change and the associated rise in temperature are forcing winemakers in particular regions (e.g. Bordeaux) to change their production processes and even the style of their finished products, potentially increasing the value of older vintages.

Does good wine have to be expensive? 

When it comes to wines that have investment potential this statement is unfortunately completely true. Only about 5% of the wines produced are suitable for ageing, and among these only a small proportion is of real interest to collectors. Of course, it pays to invest not only in the most expensive labels. A few hundred dollars for a bottle of wine, whose price may increase even 4 times over time, does not necessarily sound like an insurmountable barrier for the average investor. It should be remembered, however, that such wine cannot simply be placed on a shelf and wait until its market value increases. Proper storage is key. Temperature, humidity and even lighting - all these determine whether the beverage will actually mature over time and acquire new qualities, or simply spoil. 

Unfortunately, the prices of specialised refrigerators, suitable for storing collectible wines, start at several thousand dollars. Buying and maintaining such equipment with only one bottle in mind simply does not make sense. Not everyone has enough space at their disposal, either. Moreover, wine trading, due to numerous legal restrictions (wine is, after all, an alcoholic beverage), is rarely conducted in the peer-to-peer model, which significantly complicates the matter of its sale by an independent investor. As a result, investments in wine collectors, despite numerous advantages, remain so far closed to a narrow group of people and institutions. As in the case of antique cars and art, this problem can be solved with tokenization.

Tokens as a breakthrough for the industry

When buying tokens whose value would be secured by wine, we would not have to worry about storing the bottles. They would be kept in refrigerators or entire special cellars of the token distributor, just like cars in the garages of the aforementioned CurioInvest. Furthermore, tokenization would significantly increase liquidity in the collectible wine market. When buying wine in the traditional way, we in a way freeze our funds. It often takes years for the value of wine to rise, and even when we decide to liquidate our investments, we have no guarantee that we will find a buyer for our bottle right away. Tokens would be free from such restrictions, we could sell them at any time, without worrying about the cost and risk of transport (bottles are made of glass!) or looking for someone willing to buy the whole wine. 

Source: The World of Fine Wine

Projects distributing such tokens are already emerging. One of them is Vinsent, which, thanks to tokenization, makes it possible to buy cases of wine while it is still in the initial stages of production. The market for exclusive wine during a coronavirus pandemic is characterised by much lower volatility than global stock markets. And as this coincides with a renewed interest in blockchain technology we can expect more similar projects to emerge in the near future.

Where will the tokenization of alternative assets take us?

The tokenization of cars, art or wine does not sound so exotic if we look at already existing projects that have taken even less typical assets for a spin. Take SardineCoin, for example, a token offered by Luxembourg-based MY Sardines, whose value is secured by tinned sardines. The company is banking on the durability and ease of storage of the canned fish, which it says can last for hundreds of years as a collector's item. All indications are that all the possible uses of this technology will be explored for a long time to come. Of course, not every tokenization idea is doomed to success. Not only the characteristics of the assets themselves, but above all the quality of the technological solutions used have a determining influence on the end result. 

Do you have your own idea for a tokenization project? Get in touch with our team of experts who will certainly be able to help you. 

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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.