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Suppose I have a car and I want to tokenized it. Now I have following questions.

  1. What will be the process to make a digital token of my car.
  2. If someone buy this token, Will I have to transfer token along with physical car?
  3. if someone refuse to give car to someone else later the for what purpose he will use token?
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  • you are asking for business rules on a technical forum. Ask this on a business forum, you are the one who is defining business rules and the IT technology is only there to enforce that rules
    – Nulik
    Jul 13, 2021 at 20:19

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Asset tokenization uses the blockchain as a trusted third party that will faithfully keep the asset data intact, including the asset's ownership.

So if you can convert an object, like your car, to a token via signing (complex hashing workflow) the object's identifier (papers or certificate of ownership) with your private key and another third-party's key you will be able to transfer the value of that object digitally to the next holder.

The transfer of physical objects has always been disputable that's why we have government issues proofs. The standard of the erc721 has the mechanism to prove that you own a certain hash of an object that you can trace back, via the market supporting the tokens, to the exact object it represents.

you should worry about the refusal of the new holder to give you the car as much as you worry about buying stuff from Facebook marketplace. But the biggest worry is actually the durability of the markets supporting the tokens since there are multiple markets and each has its own token type and they can be not interchangeable.

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