Why tokenization is important in Fintech

Before doing for why “Tokenization” let see WHAT. If you’re involved in fintech, you have certainly already heard the buzzword about this work “tokenization”. 

Tokenization is the artwork of substituting meaningless statistics to meaningful records.

It’s one of a kind from encryption within the experience that, to perform tokenization you construct a dictionary where the token entries are mapped to the unique entries. Without the knowledge of the dictionary – which acts as the “key” – there is no way to understand the nature and value of the tokenized data.

Tokenization is usually achieved either by one-time hashes, either by random generation, either by both. For quite a while, the ideas of tokenization and digital tokens have been increasing a lot of footing in the FinTech business with the latter being used to represent various assets on a blockchain. 

Organizations across the planet are increasingly embracing digitization with more and more countries, especially in Europe, adopting a pro-crypto stance for financial services. Malta, the first one to adopt a legal framework that regulated cryptocurrencies and blockchain, is an excellent example of these countries. Other nations include Estonia, France, Switzerland, Germany, and the UK.

According to Leszek Forytta CEO at Wolfs Group OÜ, investment banks can save up to $12 billion in matters concerning “costly reconciliation processes and systems” by leveraging blockchain technology.

Wolfs Group OÜ is a European consulting company that specializes in various strategic industries investing. They are all set to tokenize Ferpay Ltd., an international money transfer service currently involved in utilizing the functionalities of blockchain revolution for its needs

This is a great example of Tokenisation, also another company called Vaultoro from Switzerland enables users to purchase tokenized parts of gold using bitcoin. The precious metal is safely stored in Switzerland, while the platform allows users to trade directly with other members. Whereas Ferpay, FCA licencee (Authorised Payment Institution Ref.No. 607425), Ferpay can process transfers in all of the world’s currencies with eight having been introduced as of today.

Ferpay facilitates transfers in seven currencies and between 50 countries (the currencies include the British pound, the Czech koruna, the Swiss franc, the euro, the Polish zloty and more). Ferpay clients also have access to an online exchange and prepaid cards.

mm
June is an experienced adviser in Blockchain with a successful track record of working in Public Relations and Growth planning. June has been an active advisor for cryptocurrency enthusiasts and a well known author of Blockchain. June has a passion for learning and is Internationally known for her work in crypto industry.

Manoj Malviya is chilling on the peaceful seashores of Bali with his companions!

Previous article

Top Tech Trends To Watch At CES 2020

Next article

More by this Author

Based on your Interest

Comments

Comments are closed.