One unseen effect of tokenization helps balance-out the interests of producers and consumers. It’s hardly a secret that hardware equipment producers are frequently un-bothered about whether their items break or not – especially if they’re on sale at fixed prices.
We can see clear examples of this among car manufacturers (the glory days of the reliable Mercedes passed with the era of the Merc-124) – or mobile phones, whose operational lifetimes grow continually shorter, to ensure that customers move up to newer models.
The manufacturers of Michelin tyres could, in theory, use innovation to improve the service life of their tyres by 20% – but would have to cope with customers being unwilling to pay 20% more for them. However, they found a neat way out of this. Michelin instead rolled-out a leasing program (who else would have thought of this?) in which users don’t pay per tyre, but per kilometre drove on the tyres.
This gave the firm a profit hike of even better than 20%. Another famous example we could cite would be Henry Ford – who paid his work crews only for their rest periods (although the production line operated round-the-clock).
Tokenization enables the introduction of transparent billing policies and use of resources – and these create business models which suit the needs of both producer and consumer. We’re on the cusp of a new era in car manufacturing, and I won’t be surprised if the taxi industry doesn’t begin featuring car manufacturers – who, of course, would then have interests in their vehicles operating without breakdowns for longer and longer periods.
Users would thus gain handy access to tokenized resources (journey times, measured in minutes) which could be sold, or even traded on the open market.
We are at the edge of the huge shift, which will unleash the value of assets and increase the efficiency of resource allocation. That’s why Distributed Lab is working on an open framework for the tokenization of assets (TokenD) that describes best practices and technology.
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.