[New post] Forensic analysis can benefit from tokenization: World Token Summit panel
Crypto Breaking News posted: "In a panel on the economics of tokenization at the World Token Summit 2023 event in Dubai, participants discussed how tokenization adoption could be scaled further through tools like address tracking and forensics analysis.At the event, Cointelegraph spok" Crypto Breaking News
In a panel on the economics of tokenization at the World Token Summit 2023 event in Dubai, participants discussed how tokenization adoption could be scaled further through tools like address tracking and forensics analysis.
At the event, Cointelegraph spoke with Jeremy Firster, the global head of partnerships at the Cardano Foundation; Meng Chan Shu, the head of business development at the Ras Al Khaimah Digital Assets Oasis (RAK DAO); and Ellis Wang, who works with the executive and advisory team at The Private Office of Sheikh Saeed bin Ahmed Al Maktoum.
The group explored various topics relating to tokenization, including the benefits brought about by digitalizing assets and the challenges organizations may face in navigating the realm of tokenization.
Panel discussion on tokenization at the World Token Summit. Source: Websh3
Kicking off the panel, Firster highlighted that tokenization's benefits are found in utility creation. According to the executive, tokenization brings value by providing a tool for access, fund distribution and fragmentation of assets. He explained:
"What tokenization represents is the ability to capture the digital identity of an asset, its ownership, its value and its history."
Contributing to the topic, Wang — who previously worked in the banking sector — highlighted that tokenization's main benefits are transparency and security, which are inherent features of blockchains. By putting records within the blockchain, the executive believes that tokenizing real-world assets naturally gives them various advantages, like the flexibility brought about by smart contracts.
After talking about its benefits, the executive also recognized the challenges for organizations navigating the wave of tokenization. According to Wang, with so many emerging technologies, it's difficult to keep up with the latest developments.
In addition, measures such as Know Your Customer (KYC) and Know Your Transaction, which ensure that funds don't come from illicit sources, add another layer to the various challenges the space has to deal with. Despite this, the executive still believes that tokenization offers a big opportunity for many industries.
Adding to the conversation, Firster said forensic analysis could help scale adoption. The executive said that the space reached a point where address tracking to very large entities is possible. He explained that:
"It's all about the rules of how many previous transactions they need to look into in order to ensure that these funds are clean and clear for use within a trade finance model."
Firster highlighted that with this, the question arises: "What information needs to be embedded into tokenized assets to be compliant?" For example, the panelist talked about tokens being tied to real estate and said there must be a way to determine on-chain if an asset is genuinely connected to an asset outside of the blockchain. "So when we talk about digital signatures, we need to have an embedded identity solution, which is also part of KYC," he said.
Meanwhile, Shu agreed with the other panelists. The executive discussed what the community should focus on when dealing with tokenization. "You need to make sure that 'that' token serves a purpose," he said. The executive noted that it's necessary to be aware of that purpose. Shu also encouraged the community that despite the challenges they may face as the world goes toward tokenization, they have to simply "keep on building."
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