Liquidity is important.

While cryptocurrency market may not be as liquid as it was a few months ago, it still remains impeccably liquid; nearly 5% of the cryptocurrency market cap swaps hands on a regular basis.

Given the nascent stage of cryptocurrencies, the level of liquidity this market has developed is unseen in even some of the most well-developed asset markets in the world. This evidences that start-ups that tokenize their project are opting for a capital raise that can ensure their project’s underlying value can easily swap hands.

Due to the benefits of tokenization, it has been debated whether tokenization could bring about fractional ownership in a realistic format. However, leaving tokenization of real assets to just a utility for fractional ownership is a limited vision.

If start-ups can turn their development’s underlying value into a liquid and easily tradable asset, then tokenization can serve such a purpose, with possibly even greater success, to assets that are established. A new blockchain project, Liquid8, is developing a path to create liquid markets for any asset in the world.

Accessible Liquidity

The vast portion of the assets in the world can take prolonged periods to sell. The reasoning, particularly for highly valuable assets, is that issuing a sale to just 1 entity is a difficult task. Liquid8 is developing a solution to end such a format of sales for virtually any asset.

Liquid8’s core mechanism is to tokenize any asset as long as the asset-owner is willing to do so. The process is simple yet intuitive. Once the owner of an asset agrees to the liquidation of the asset, a proof-of-asset is set to course to ensure the validity of claims. The mechanism takes into account the likely need of offline contractual agreements. Once any possible offline conditionals are met, the blockchain factors come into play. A smart contract is developed specifically for the asset being tokenized; this smart contract will create Smart Asset Tokens specific to the asset.

Once the tokenization process is complete, the platform enables a new form of liquidity for the physical asset as fractions of it will be purchasable by anyone, anywhere. The result is that while most assets would typically require the need for a single owner, Liquid8 provides the means to securely distribute the ownership of the asset to any number of willing buyers.

The key to the success of the project is that a Tokenization Smart Contract is issued for each asset. This ensures that the conditionals of the tokenization are stored in an immutable record, thus ensuring no future tampering can be done. Thus, when a person buys a Smart Asset Token, he or she can be certain that the fractional asset purchased will always match the asset that had been issued via the Tokenization Smart Contract.

Liquid8 takes the utility of blockchain to the real-world by utilizing smart contracts to create a means to provide liquidity to any real-world asset. As liquidity is highly desirable but is difficult to achieve in most asset markets, Liquid8 is developing a revolutionary concept as it provides a secure process of tokenizing assets to make the underlying value tradeable in fractions and in a p2p environment.