Cattle tokenization gaining popularity 

Tokenization of physical assets appears to be one of the most practical uses of blockchain technology. Minting cryptos and creating loan systems can certainly lead to efficient solutions. 

It gives people the chance to one day take out loans through DeFi protocols, which was unthinkable just years ago. But even though this is possible, the fact that mainstream use of cryptos is still a bit far away means that everybody might have to wait a little longer for DeFi powered loans. 

On top of that, regulatory red tape remains to be one of the major things that clog cryptos’ continuous rise. And with these existing problems, asset tokenization has the massive potential to deal with these limitations and provide a viable solution. 

Asset tokenization

Asset tokenization happens when digital tokens are created on a blockchain representing a digital or physical asset. In other words, it functions as a proof of ownership. 

Most people will certainly associate asset tokenization to NFTs (non-fungible tokens), and while this is correct, there are actually more ways to tokenize assets aside from going the NFT route. 

In fact, tokenized items cannot only be found on NFT marketplaces, they can also be found in unlikely ones — like a cattle ranch! 

Tokenized cattle, anyone?

In Bolivia, a country located in central South America, there is a crypto token that aims to bring innovation to “farming tokenization”.

This token, called Finka Token, is gaining ground on a 3,200-hectare organic cattle farm named La Padera. Finka Token is a revenue share token and an ERC20 compatible token. 

“We searched for a stable and well-known asset to compensate for the volatility and relative novelty of the crypto space. Cattle ranching offers predictable returns, a very stable cost curve, and a simple production process with very few variables,” Carlos Fernandez Mazzi, a founding partner at Finka, said.

Image courtesy of Cointelegraph News/YouTube

Source: https://bitcoinerx.com/blockchain/cattle-tokenization-gaining-popularity/