Jun 14, 2021
Tokenization of real-world assets, including money, real estate, commodities, shares, and art, is poised to become the next big trend in finance once the regulatory framework is adjusted to leave the door open for such digital assets. Companies that already implement tokenization use cases are one step ahead of everyone else.
Read how to tokenize assets on the Algorand blockchain.
Tokenized assets on Algorand do not require to be coded on a Smart Contract like they do on other blockchains. Tokenized assets on Algorand leverage the Algorand Standards Assets (ASA) framework, which enables developers to create new tokens, either fungible or non-fungible, on Layer-1 within a few minutes.
ASA acts as the underlying technology for tokenization processes, letting issuers benefit from all great features of the Layer-1 network, including high throughput, decentralization, speed, security, and transparency, among others.
The good news for developers is that tokenization processes can be deployed on Layer-1 through a simple transaction.The tokenized assets are highly configurable, enabling developers to mint tokens, and configure them to allow revoking and freezing.
Here are the main benefits of ASAs:
Before starting the tokenization process, you should be aware of a few things:
The type of newly minted asset is defined by the parameters selected during the creation process. There are eight immutable parameters and four mutable ones. The former include:
As mentioned, there are also four other parameters that can be changed, and all of them imply addresses that may authorize certain functionality for an asset. Here they are:
Now that you understand ASAs’ parameters, you can start creating the asset in the coding language you prefer. Any account with sufficient ALGO balance can create a new asset.
Here is an example of asset creation:
You can find the complete code on GitHub.
Algorand makes it easy for anyone to tokenize real-world assets and contribute to the digital revolution. The improved user experience is one of the key factors that will spur wider adoption of tokenized assets.