Why do companies tokenize their assets? Tokenization increases liquidity of assets and removes frictions to trade while adding new features to underlying asset, such as appreciation potential.
Currently, there are no standardized tokenization practices which can be a barrier to integration and interoperability while posing security risks at management level.
Created by Distributed Lab from Ukraine, TokenD is a framework for enterprise tokenization platforms, consisting of best practices, protocols, a codebase, wireframes, technical specifications, security, and quality standards explaining how to build a system to tokenize assets.
TokenD Use Cases
- Issuance of native tokens by businesses
- Registration and management of customers
- Sale of tokens to customers for other currencies
- P2P and merchant transactions using tokens
- Implementation of business logic for tokens(fees, limits, escrow, etc.)
- Trading of tokens on exchanges
How Does TokenD Work?
The owner of a platform can define principles of governance based on business requirements, establish roles and requirements for assigning roles such as validators, users, auditors etc. and determine who can access transaction data if it is not to be public access.
The platform owner also determines the distribution of nodes which contain a full copy of transactions. ‘Watch only' nodes can access transaction history but cannot validate new transactions, while ‘validator' nodes reach consensus regarding new transactions. The amount of validators can be changed on the fly.
Blockchain allows for transparent and auditable decision-making for all involved entities. The platform seamlessly and continuously decentralizes storage, maintains auditability, and facilitates transaction processing, all at the required levels of granularity.
Each customer of the platform has full history of their own transactions and each transaction results in a cryptographically signed confirmation. Full history of the changes, including fee changes, of all the balances can be provided to auditors. No one, including the owner of the platform, can change the state of an account.
Only platform owner or regulator is able to get access to identities of customers. KYC info is encrypted and stored in a separate database. Questionable transactions could be made to trigger an external AML engine.
A token can represent integral value of all assets on the platform, share of the platform or a utility token which is used to pay fees or services. Each company can issue its own token backed by real assets. Proof of reserves could be provided via signed receipts from the issuer.
TokenD Functional Modules
The TokenD platform consists of four functional layers:
- Core (blockchain)
- Business logic
- Customer / admin / agent / merchant / auxiliary apps
- External integrations infrastructure
Core of the system can be securely installed on enterprise server, in the cloud or in some other public/private infrastructure. Transition between all kinds of servers is done smoothly through blockchain technology.
Each layer is separated, communicating with other layers via API. API allows third party application connections, secure communications with the core, and the modification of user/merchant applications without alteration of the business logic.
TokenD also consists of four logical layers, namely, depository, exchange, payment system and wallets which are seamlessly integrated with each other and can be tailored to the needs of each platform owner.
TokenD is wordpress for asset management, offering a turn-key solution for businesses looking to tokenize their various assets and services.