How We Tokenize Real World Assets

What is Real World Asset Tokenization (RWA)?

Real World Asset Tokenization, or RWA, refers to the representation of something that exists in the physical world in a digital form, using blockchain technology.

Blockchain technology enables assets to live on the network, governed by their own rules, without needing an app to manage them.

This is achieved by creating a digital asset: a token.

What is a Token?‍

A token is a digital representation of an asset that can be securely transferred and stored using blockchain technology. Essentially, it’s something that exists on blockchain, and it can represent a wide variety of things, such as digital currencies, documents, property rights, shares, votes, access to services, and more.

Types of Tokens‍

There are different types of tokens, but the most common fall into two main categories:

‍Fungible Tokens: These tokens are interchangeable because they are all identical. Each token has the same value and characteristics as another of the same type, which makes them interchangeable without affecting ownership. A common example would be a cryptocurrency like Bitcoin or USDT.

‍Non-Fungible Tokens (NFTs): Just like a person who is unique and irreplaceable, the same applies to non-fungible tokens (NFTs). Each one has distinct characteristics that set it apart from others, making them unique. They represent specific assets, such as rights to shares of a trust or other digital assets, and are designed to be clearly and precisely identified, ensuring their authenticity and unique value.

Challenges in Tokenizing Real Assets‍

Tokenizing real-world assets presents a major challenge: How can we unambiguously link a real-world asset with its digital representation on blockchain? Many current tokenization solutions use fungible tokens, which come with certain risks and limitations.

With fungible tokens, such as coins created on blockchain to represent an asset, the value of these “tokens” is more related to the currency issuance than the real asset they represent. Imagine tokenizing 10 cars. If each token represents a share of those cars, what happens if one car is stolen? There is no way to clearly identify which car belongs to which participant, creating uncertainty and risk for token holders and causing the token value to drop dramatically.
The issue is that fungible tokens don’t allow for specific identification of the asset, reducing confidence and accuracy in the tokenization process.

Pala Blockchain's Solution‍

At Pala, we’ve developed an innovative approach to overcome these challenges.

For us, the core value of tokenization lies in the ability to reliably link the physical asset with its virtual representation.

This way, the token holder can be assured that the acquired asset is clearly identified and backed, in compliance with the existing regulatory framework.

What Makes Pala’s Quality Tokens Unique?‍

At Pala, we tokenize real-world documents that grant rights to the asset in a unique and secure way. These documents are stored on blockchain and become unique digital assets.

We define our "Quality Tokens" by the following characteristics:

1. Real-time Creation: The token is generated at the moment the asset is acquired, using blockchain online.
2. Unequivocal Identification of the Underlying Asset: Each token precisely represents the corresponding physical asset and can be personalized with the buyer's name, applying a proof-of-existence (PoE) method.
3. Transferability: The token can be transferred or endorsed in a secondary market, enabling its commercialization.
4. Dynamic Attributes: The token changes its attributes based on the status of the real-world asset it represents, offering precise and up-to-date information.

Tokenization with Blockchain: Multiply Your Sales and Transform Asset Commercialization

At Pala Blockchain, we make real-world asset tokenization secure and trustworthy. We create unique tokens that clearly and transparently represent the underlying assets, always complying with current legal regulations.

"Our "Quality Tokens" offer real-time rights, are easy to transfer, and adapt to any changes in the assets, providing a modern, secure, and reliable solution for tokenizing real-world assets."

We are committed to helping companies and organizations integrate blockchain in a simple and reliable way, building a new way of doing business—just as e-commerce did with the internet. With tokenization, blockchain will lead the new era in asset commercialization, transforming how we create and share value.

At Pala Blockchain, we are ready to help you be part of this transformation. Discover how tokenization can revolutionize how you manage your assets. Contact us today and take the first step toward the future of asset commercialization.