Operations With Tokens

In one of our blogs, we explained what tokens are and their different types. You can find it here if you haven’t checked it out yet! 

In this blog, we will explain the operations that can be done with them.

HOW ARE TOKENS CREATED?

Tokenization is the process of creating tokens. This process transforms an asset (real estate, shares, bonds, works of art, among others) into digital fractions.

Tokens are issued once the asset has been tokenized; this is called token mining. It is a decentralized method that allows creation without involving a central authority such as the government or banks.

Proof of stake and proof of work makes it possible for the entire blockchain network to work. Each transaction made on this network must go through these processes to give them validity. In addition, these mechanisms are the ones that approve the creation of new tokens.

HOW ARE THE TOKENS DISTRIBUTED?

Tokens are distributed, purchased, or sold differently;

Token allocation is about distributing them to all investors participating in the transaction when issued.

Security Token Offerings (STO) are the security tokens version of an initial public offering on the blockchain and are regulated by financial supervisors.

Initial Coin Offerings (ICO) is how a new coin is issued to the market. These types of offerings do not have any regulations.

In addition, secondary markets are better known as ATS (alternative trading system), which are responsible for automatically connecting the buyer and the seller. Some examples of ATS are Tzero and INX.

Another alternative to making transactions is peer-to-peer, which are direct operation between two people who exchange products or services for an agreed value. Money and product transfers are made in real time and without any intermediation.

HOW TO CREATE CAPITAL USING TOKENS?

Security tokens are an excellent alternative to investing in assets that usually have a very high entry ticket, making them exclusive for people with high purchasing power or entities or corporations with high budgets.

Real estate security tokens create a democratization solution to this market, eliminating high barriers to entry and making it easier for you to invest in properties with small amounts of money. In addition, it allows you to create equity by investing in high-quality assets with dividend payments and potential profits in dollars, one of the strongest currencies worldwide. 

In this link, you can learn more about how the tokens work, their relationship with the real estate market, and the access and investment opportunities offered by BRET Real Estate Tokenization.

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