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Top Tokenization Platforms in 2023: A Comparative Analysis

Karolina

22 Jun 2023
Top Tokenization Platforms in 2023: A Comparative Analysis

Tokenization has emerged as a groundbreaking innovation that leverages blockchain technology to transform traditional assets into digital tokens. By representing real-world assets digitally, tokenization provides new avenues for liquidity, fractional ownership, and global accessibility. In 2023, the adoption of tokenization platforms has reached new heights, enabling businesses to harness the power of blockchain, AI, and cryptocurrencies to create customized software solutions.

Table of Contents

Choosing the right tokenization platform is crucial for businesses seeking to unlock the full potential of this technology. In this article, we will conduct a comparative analysis of the top tokenization platforms in 2023. By examining their features, achievements, and capabilities, we aim to provide valuable insights to businesses looking to embark on a tokenization journey.

Tokenization opens doors to a wide range of possibilities, including fundraising for new projects, crowdfunding companies, increasing the accessibility of real estate investments, democratizing art investments, and tokenizing various assets of economic value. As we delve into the comparative analysis of the top tokenization platforms, we will also highlight the benefits and opportunities presented by each platform's features and functionalities.

Top Tokenization Platforms

Nextrope Tokenization Platform

Nextrope Tokenization Platform is a reliable and innovative solution for tokenization. As a White Label Software-as-a-Service (SaaS) model, Nextrope Launchpad Platform assists businesses in launching their projects within a month and raising funds through Initial Coin Offerings (ICOs) or Security Token Offerings (STOs). Nextrope has been actively supporting tokenization since 2019, with a successful track record of completing eight tokenization projects. Through their platform, Nextrope has secured over $40 million USD in funding for their clients.

Key Highlights

  • Tokenize Everything with Nextrope Launchpad: Nextrope's platform allows businesses to participate in the broad financial market of digital assets, expanding their reach and finding investors globally.
  • Accessible and Inclusive Fundraising: Tokenization offers the most accessible and inclusive form of fundraising on the market, with fewer formal requirements compared to bank loans, crowdfunding, and initial public offerings (IPOs). It provides businesses with exposure to global investors.
  • Tokenize New Projects: Nextrope enables businesses to raise funding for new projects, providing quick access to capital when needed.
  • Tokenize Companies: Utilize the power of blockchain technology to crowdfund your company. Nextrope's platform offers immediate access to global markets, increased speed, reduced red tape, and more.
  • Tokenize Real Estate: Nextrope allows businesses to make their real estate more accessible to investors by tokenizing buildings and enabling partial ownership, thereby increasing the investor pool.
  • Tokenize Art: Through Nextrope's platform, businesses can make art investments available to a broad number of investors, fostering inclusivity in the investment landscape.
  • Tokenize Assets: Nextrope harnesses the potential of blockchain technology to digitize and tokenize virtually any object of economic exchange, providing businesses with a versatile solution for tokenizing various types of assets.

Nextrope Launchpad Features

  • Transaction Systems: Nextrope's platform facilitates the deployment of secure and fast payment solutions, offering clients and their customers convenient and trusted tools for payments.
  • Custom Digital Wallet: Nextrope provides a customized digital wallet solution for seamless token storage, transfer, and management.
  • API Development: Nextrope offers API development services, enabling businesses to integrate their tokenization platform with other applications and systems.
  • Financial Management Solutions: The platform includes financial management tools to streamline accounting, reporting, and compliance processes.
  • Cloud FinTech Solutions: Nextrope offers cloud-based FinTech solutions, providing scalability, reliability, and accessibility for businesses operating in the digital asset market.
  • Transaction Automation: Nextrope's platform automates token transactions, enhancing efficiency and reducing manual intervention.
  • Databases and DevOps: The platform includes robust databases and DevOps support, ensuring secure and efficient data management for businesses.
  • Tokenization Development: Nextrope specializes in token development, leveraging their expertise to create customized tokens that meet specific business requirements.

For Token Issuers

  • Adjustable KYC Process: Nextrope's platform offers an adjustable KYC process that balances compliance with user experience, making it easier for token issuers to onboard investors.
  • Token Development: Nextrope's experienced team assists in the development of customized tokens for businesses, aligning them with their specific requirements.
  • Integration with AML Scoring System: Nextrope integrates with an Anti-Money Laundering (AML) scoring system, providing administrators with instant AML information about registered clients.
  • Flexible Token Management: The platform supports flexible token management, including token vesting and instant token transfers, allowing issuers to define single or multiple rounds of ICOs with progressive token prices.
  • Automatic Token Management: Nextrope's platform automates the token distribution process, sending tokens to customers once they make the payment.
  • Investment Meter: Token issuers can showcase the amount of capital raised on the main page, instilling confidence in potential investors.
  • Admin Account: Nextrope provides token issuers with an admin account that includes features such as a registered investors list, KYC waiting list, and comprehensive investor management capabilities.

Fireblocks Tokenization Engine

Fireblocks Tokenization Engine is a powerful platform that simplifies the process of tokenization, providing businesses with the tools they need to create and manage stablecoins and security tokens securely. The platform offers a comprehensive suite of features to facilitate the full lifecycle of tokenization, including minting, burning, and secure token transfer.

One of the key strengths of Fireblocks Tokenization Engine lies in its ability to enable the creation and redemption of fiat-backed stablecoins. Financial institutions and payment service providers can leverage this feature to manage smart contracts, obtain whitelisting approval, and ensure secure custody of digital assets.

Features and advantages

  • Tokenizing Any Asset: The platform empowers businesses to create both stablecoins and security tokens, allowing for the representation of a wide range of assets in a digital format.
  • Secure Token Storage and Transfer: Fireblocks ensures the secure storage, transfer, minting, and burning of tokens, protecting them against potential threats and unauthorized access.
  • Day-to-Day Token Operations: The operations dashboard provided by Fireblocks simplifies the management of token operations, making it easy for token operators to handle tasks such as token minting, burning, and transfers.

Fireblocks Tokenization Engine enhances liquidity by facilitating token trading and transfer on a secure and decentralized platform. By integrating with efficient exchanges, businesses can enable seamless trading and connect with a vast pool of trusted investors.

Furthermore, the platform's global market presence is bolstered by its integration with distributed blockchain networks. This integration enables businesses to reach mature secondary market players worldwide, expanding their investment opportunities and global footprint.

Operational transparency is another key aspect of Fireblocks Tokenization Engine. The decentralized nature of security tokens ensures clear ownership and management visibility, eliminating the need for intermediaries and reducing the risk of fraud or misuse during deal execution.

The Omni Layer

The Omni Layer is a software platform built on top of the Bitcoin blockchain, offering a comprehensive solution for creating and trading custom digital assets and currencies. As a software layer built on the most popular and secure blockchain, Bitcoin, Omni transactions are essentially Bitcoin transactions that enable advanced features and functionalities.

One of the primary advantages of Omni is its simplicity in creating tokens to represent custom currencies or assets and transacting them via the Bitcoin blockchain. This simplicity has contributed to Omni becoming the leading Bitcoin-based token protocol, offering power and ease-of-use for businesses and individuals alike.

Key features

  • Custom Currency Creation: Omni allows users to easily create tokens that represent custom currencies or assets. These tokens can be transacted and tracked on the Bitcoin blockchain, providing a secure and transparent means of exchanging value.
  • Blockchain-Based Crowdfunding: Omni supports decentralized crowdfunding, allowing crowdsale participants to send bitcoins or tokens directly to an issuer address. In return, the Omni Layer automatically delivers the crowdfunded tokens to the sender without the need for a trusted third party.
  • Peer-to-Peer Trading: Participants can utilize the distributed exchanges provided by the Omni Layer to exchange tokens for other tokens or bitcoins directly on the blockchain. This peer-to-peer trading capability eliminates the reliance on centralized exchanges, offering greater control and security over token transactions.
  • Web Wallets and Integration with Exchanges: Omni provides easy-to-use and secure web wallets, enabling users to store and manage their tokens conveniently. Additionally, the platform is integrated with top Bitcoin and altcoin exchanges, facilitating seamless token trading and liquidity.
  • Integration with Bitcoin Core: Omni's server daemon is based on Bitcoin Core, making it easy to integrate with existing Bitcoin infrastructure. This compatibility ensures a smooth integration process for businesses and developers looking to leverage the Omni Layer.
  • Fully-Validating Desktop Wallet: The Omni Layer offers a fully-validating desktop wallet and client based on Bitcoin Qt. This wallet provides users with complete control over their tokens, allowing them to securely send, receive, and manage their assets.
  • Tether Integration: Omni is also known for its integration with Tether, a stablecoin backed by bank trust and redeemable for SWIFT. This integration provides users with access to a stable digital currency that can be used for various purposes within the Omni ecosystem.

Pixelplex.io STO Platform

Pixelplex.io is a leading provider of custom Security Token Offering (STO) development and consulting services. With their expertise and innovative solutions, Pixelplex.io assists businesses in revamping their operations using security token services tailored to their specific needs. By leveraging the Pixelplex.io STO platform, businesses can swiftly reach their goals while capitalizing on the opportunities presented by security tokens.

The Pixelplex.io STO tokenization platforms offers a range of features and benefits to businesses seeking to access top-scale investment opportunities worldwide. 

Key advantages

  • Personalized Security Token Offering Platforms: Pixelplex.io develops customized STO platforms that align seamlessly with a business's existing infrastructure. These platforms are tailored to meet the unique requirements and objectives of each client, ensuring a highly targeted approach to fundraising and investment.
  • Advanced Liquidity: The platform enables businesses to attract rich funding quickly by integrating with efficient exchanges. This integration facilitates the seamless trading and transfer of security tokens, connecting businesses with a wide pool of trusted investors and enhancing liquidity.
  • Global Market Presence: With security token offering platforms built on distributed blockchain networks, businesses can expand their market presence globally. Whether it's a large-scale offering or a smaller one, the platform provides access to mature secondary market players worldwide, increasing exposure and opportunities for investment.
  • Operational Transparency: Security tokens inherently promote transparency in ownership and management. By utilizing security tokens on the Pixelplex.io platform, businesses can execute deals without relying on banking intermediaries, minimizing the risk of fraud or misuse. The platform ensures clear visibility into ownership and management throughout the entire process.
  • Automation and Cost Efficiency: Powered by smart contracts, the Pixelplex.io STO platform offers automation and cost-efficiency benefits. Real-time asset distribution and dividend payments can be executed through self-executing smart contracts, reducing manual intervention and optimizing resource allocation.
  • Pixelplex.io provides comprehensive consulting and development services to guide businesses through the implementation of security tokens. They offer expertise in analyzing the feasibility of security token implementation, designing unique solution roadmaps, estimating potential spending, and engineering custom platforms that take into account the specific requirements of each business.

Conclusion

In conclusion, tokenization platforms have revolutionized the way businesses approach fundraising, investment, and asset management. The top tokenization platforms in 2023, including Nextrope Tokenization Platform, Fireblocks Tokenization Engine, Omni Layer, and Pixelplex.io STO Platform, offer unique features and advantages to businesses looking to leverage the power of blockchain technology. These platforms enable businesses to tokenize a wide range of assets, raise funds globally, increase liquidity, and foster transparency and efficiency in transactions. Whether businesses are looking to launch new projects, tokenize companies, real estate, art, or other assets, these platforms provide the necessary tools and capabilities to unlock the full potential of tokenization. It's important for businesses to carefully consider their specific requirements and goals when choosing a tokenization platform that best suits their needs.

Start fundraising for your project within one month with Nextrope Launchpad Platform! Contact Us!

Tagi

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Token Engineering Process

Kajetan Olas

13 Apr 2024
Token Engineering Process

Token Engineering is an emerging field that addresses the systematic design and engineering of blockchain-based tokens. It applies rigorous mathematical methods from the Complex Systems Engineering discipline to tokenomics design.

In this article, we will walk through the Token Engineering Process and break it down into three key stages. Discovery Phase, Design Phase, and Deployment Phase.

Table of Contents

Discovery Phase of Token Engineering Process

The first stage of the token engineering process is the Discovery Phase. It focuses on constructing high-level business plans, defining objectives, and identifying problems to be solved. That phase is also the time when token engineers first define key stakeholders in the project.

Defining the Problem

This may seem counterintuitive. Why would we start with the problem when designing tokenomics? Shouldn’t we start with more down-to-earth matters like token supply? The answer is No. Tokens are a medium for creating and exchanging value within a project’s ecosystem. Since crypto projects draw their value from solving problems that can’t be solved through TradFi mechanisms, their tokenomics should reflect that. 

The industry standard, developed by McKinsey & Co. and adapted to token engineering purposes by Outlier Ventures, is structuring the problem through a logic tree, following MECE.
MECE stands for Mutually Exclusive, Collectively Exhaustive. Mutually Exclusive means that problems in the tree should not overlap. Collectively Exhaustive means that the tree should cover all issues.

In practice, the “Problem” should be replaced by a whole problem statement worksheet. The same will hold for some of the boxes.
A commonly used tool for designing these kinds of diagrams is the Miro whiteboard.

Identifying Stakeholders and Value Flows in Token Engineering

This part is about identifying all relevant actors in the ecosystem and how value flows between them. To illustrate what we mean let’s consider an example of NFT marketplace. In its case, relevant actors might be sellers, buyers, NFT creators, and a marketplace owner. Possible value flow when conducting a transaction might be: buyer gets rid of his tokens, seller gets some of them, marketplace owner gets some of them as fees, and NFT creators get some of them as royalties.

Incentive Mechanisms Canvas

The last part of what we consider to be in the Discovery Phase is filling the Incentive Mechanisms Canvas. After successfully identifying value flows in the previous stage, token engineers search for frictions to desired behaviors and point out the undesired behaviors. For example, friction to activity on an NFT marketplace might be respecting royalty fees by marketplace owners since it reduces value flowing to the seller.

source: https://www.canva.com/design/DAFDTNKsIJs/8Ky9EoJJI7p98qKLIu2XNw/view#7

Design Phase of Token Engineering Process

The second stage of the Token Engineering Process is the Design Phase in which you make use of high-level descriptions from the previous step to come up with a specific design of the project. This will include everything that can be usually found in crypto whitepapers (e.g. governance mechanisms, incentive mechanisms, token supply, etc). After finishing the design, token engineers should represent the whole value flow and transactional logic on detailed visual diagrams. These diagrams will be a basis for creating mathematical models in the Deployment Phase. 

Token Engineering Artonomous Design Diagram
Artonomous design diagram, source: Artonomous GitHub

Objective Function

Every crypto project has some objective. The objective can consist of many goals, such as decentralization or token price. The objective function is a mathematical function assigning weights to different factors that influence the main objective in the order of their importance. This function will be a reference for machine learning algorithms in the next steps. They will try to find quantitative parameters (e.g. network fees) that maximize the output of this function.
Modified Metcalfe’s Law can serve as an inspiration during that step. It’s a framework for valuing crypto projects, but we believe that after adjustments it can also be used in this context.

Deployment Phase of Token Engineering Process

The Deployment Phase is final, but also the most demanding step in the process. It involves the implementation of machine learning algorithms that test our assumptions and optimize quantitative parameters. Token Engineering draws from Nassim Taleb’s concept of Antifragility and extensively uses feedback loops to make a system that gains from arising shocks.

Agent-based Modelling 

In agent-based modeling, we describe a set of behaviors and goals displayed by each agent participating in the system (this is why previous steps focused so much on describing stakeholders). Each agent is controlled by an autonomous AI and continuously optimizes his strategy. He learns from his experience and can mimic the behavior of other agents if he finds it effective (Reinforced Learning). This approach allows for mimicking real users, who adapt their strategies with time. An example adaptive agent would be a cryptocurrency trader, who changes his trading strategy in response to experiencing a loss of money.

Monte Carlo Simulations

Token Engineers use the Monte Carlo method to simulate the consequences of various possible interactions while taking into account the probability of their occurrence. By running a large number of simulations it’s possible to stress-test the project in multiple scenarios and identify emergent risks.

Testnet Deployment

If possible, it's highly beneficial for projects to extend the testing phase even further by letting real users use the network. Idea is the same as in agent-based testing - continuous optimization based on provided metrics. Furthermore, in case the project considers airdropping its tokens, giving them to early users is a great strategy. Even though part of the activity will be disingenuine and airdrop-oriented, such strategy still works better than most.

Time Duration

Token engineering process may take from as little as 2 weeks to as much as 5 months. It depends on the project category (Layer 1 protocol will require more time, than a simple DApp), and security requirements. For example, a bank issuing its digital token will have a very low risk tolerance.

Required Skills for Token Engineering

Token engineering is a multidisciplinary field and requires a great amount of specialized knowledge. Key knowledge areas are:

  • Systems Engineering
  • Machine Learning
  • Market Research
  • Capital Markets
  • Current trends in Web3
  • Blockchain Engineering
  • Statistics

Summary

The token engineering process consists of 3 steps: Discovery Phase, Design Phase, and Deployment Phase. It’s utilized mostly by established blockchain projects, and financial institutions like the International Monetary Fund. Even though it’s a very resource-consuming process, we believe it’s worth it. Projects that went through scrupulous design and testing before launch are much more likely to receive VC funding and be in the 10% of crypto projects that survive the bear market. Going through that process also has a symbolic meaning - it shows that the project is long-term oriented.

If you're looking to create a robust tokenomics model and go through institutional-grade testing please reach out to contact@nextrope.com. Our team is ready to help you with the token engineering process and ensure your project’s resilience in the long term.

FAQ

What does token engineering process look like?

  • Token engineering process is conducted in a 3-step methodical fashion. This includes Discovery Phase, Design Phase, and Deployment Phase. Each of these stages should be tailored to the specific needs of a project.

Is token engineering meant only for big projects?

  • We recommend that even small projects go through a simplified design and optimization process. This increases community's trust and makes sure that the tokenomics doesn't have any obvious flaws.

How long does the token engineering process take?

  • It depends on the project and may range from 2 weeks to 5 months.

Tagi

What is Berachain? 🐻 ⛓️ + Proof-of-Liquidity Explained

Karolina

18 Mar 2024
What is Berachain? 🐻 ⛓️ + Proof-of-Liquidity Explained

Enter Berachain: a high-performance, EVM-compatible blockchain that is set to redefine the landscape of decentralized applications (dApps) and blockchain services. Built on the innovative Proof-of-Liquidity consensus and leveraging the robust Polaris framework alongside the CometBFT consensus engine, Berachain is poised to offer an unprecedented blend of efficiency, security, and user-centric benefits. Let's dive into what makes it a groundbreaking development in the blockchain ecosystem.

Table of Contents

What is Berachain?

Overview

Berachain is an EVM-compatible Layer 1 (L1) blockchain that stands out through its adoption of the Proof-of-Liquidity (PoL) consensus mechanism. Designed to address the critical challenges faced by decentralized networks. It introduces a cutting-edge approach to blockchain governance and operations.

Key Features

  • High-performance Capabilities. Berachain is engineered for speed and scalability, catering to the growing demand for efficient blockchain solutions.
  • EVM Compatibility. It supports all Ethereum tooling, operations, and smart contract languages, making it a seamless transition for developers and projects from the Ethereum ecosystem.
  • Proof-of-Liquidity.This novel consensus mechanism focuses on building liquidity, decentralizing stake, and aligning the interests of validators and protocol developers.

MUST READ: Docs

EVM-Compatible vs EVM-Equivalent

EVM-Compatible

EVM compatibility means a blockchain can interact with Ethereum's ecosystem to some extent. It can interact supporting its smart contracts and tools but not replicating the entire EVM environment.

EVM-Equivalent

An EVM-equivalent blockchain, on the other hand, aims to fully replicate Ethereum's environment. It ensures complete compatibility and a smooth transition for developers and users alike.

Berachain's Position

Berachain can be considered an "EVM-equivalent-plus" blockchain. It supports all Ethereum operations, tooling, and additional functionalities that optimize for its unique Proof-of-Liquidity and abstracted use cases.

Berachain Modular First Approach

At the heart of Berachain's development philosophy is the Polaris EVM framework. It's a testament to the blockchain's commitment to modularity and flexibility. This approach allows for the easy separation of the EVM runtime layer, ensuring that Berachain can adapt and evolve without compromising on performance or security.

Proof Of Liquidity Overview

High-Level Model Objectives

  • Systemically Build Liquidity. By enhancing trading efficiency, price stability, and network growth, Berachain aims to foster a thriving ecosystem of decentralized applications.
  • Solve Stake Centralization. The PoL consensus works to distribute stake more evenly across the network, preventing monopolization and ensuring a decentralized, secure blockchain.
  • Align Protocols and Validators. Berachain encourages a symbiotic relationship between validators and the broader protocol ecosystem.

Proof-of-Liquidity vs Proof-of-Stake

Unlike traditional Proof of Stake (PoS), which often leads to stake centralization and reduced liquidity, Proof of Liquidity (PoL) introduces mechanisms to incentivize liquidity provision and ensure a fairer, more decentralized network. Berachain separates the governance token (BGT) from the chain's gas token (BERA) and incentives liquidity through BEX pools. Berachain's PoL aims to overcome the limitations of PoS, fostering a more secure and user-centric blockchain.

Berachain EVM and Modular Approach

Polaris EVM

Polaris EVM is the cornerstone of Berachain's EVM compatibility, offering developers an enhanced environment for smart contract execution that includes stateful precompiles and custom modules. This framework ensures that Berachain not only meets but exceeds the capabilities of the traditional Ethereum Virtual Machine.

CometBFT

The CometBFT consensus engine underpins Berachain's network, providing a secure and efficient mechanism for transaction verification and block production. By leveraging the principles of Byzantine fault tolerance (BFT), CometBFT ensures the integrity and resilience of the Berachain blockchain.

Conclusion

Berachain represents a significant leap forward in blockchain technology, combining the best of Ethereum's ecosystem with innovative consensus mechanisms and a modular development approach. As the blockchain landscape continues to evolve, Berachain stands out as a promising platform for developers, users, and validators alike, offering a scalable, efficient, and inclusive environment for decentralized applications and services.

Resources

For those interested in exploring further, a wealth of resources is available, including the Berachain documentation, GitHub repository, and community forums. It offers a compelling vision for the future of blockchain technology, marked by efficiency, security, and community-driven innovation.

FAQ

How is Berachain different?

  • It integrates Proof-of-Liquidity to address stake centralization and enhance liquidity, setting it apart from other blockchains.

Is Berachain EVM-compatible?

  • Yes, it supports Ethereum's tooling and smart contract languages, facilitating easy migration of dApps.

Can it handle high transaction volumes?

  • Yes, thanks to the Polaris framework and CometBFT consensus engine, it's built for scalability and high throughput.

Tagi