Real shares or Tokenized equity?
Most of the people only know about Bitcoin and its crazy volatility. What they don’t know is how it was built on blockchain and how the blockchain can be used other than trading of bitcoin and other crypto.
Blockchain can be applied to many industries: banking, insurance, retail, healthcare, just to name a few.
It can also be used to substitute shares. Or as it called: a tokenized equity.
Tokenized equity refers to the creation and issuance of digital tokens or “coins” that represent equity shares in a corporation or organization.
To draw a parallel with present-day equity share ownership, say you purchased shares of a listed company during its initial public offering (IPO), or bought them on the stock exchange. These shares are then credited to your Demat account. Tokenized equity shares work the same way, except that those shares are in the digital form of crypto coins or tokens, and instead of going into your Demat account, they are credited to your blockchain-hosted account. (c) Investopedia
In other words, you issues your shares in form of coins on blockchain, let’s say 100,000,000 coins that’s equal to 100% of regular company shares. Then you deposit those shares to digital wallets. If A. owns 51% of the company, then A. gets 51,000,000 coins. If B. owns 20% of the company, then B. gets 20,000,000 coins and so on.
You can easily transfer shares to each other, sell it, exchange. All in a matter of seconds, sometimes minutes, depending on current network speed. All you need is a compatible crypto wallet and basic knowledge of how to use it.
We at SapioX are considering such option of having our shares to be issued on blockchain as tokens so it could be easily transferred, purchased, exchanged, etc. Stay tuned, soon there will be more info.
Olesya Tarasova, David Karlin
SapioX