Patrycja Maksymowicz: Asset Tokenization is the process of converting real assets into digital ones on blockchain, the process enables fractional ownership of assets. Amazing Blocks is the first company to tokenize equity according to the Liechtenstein Token Act and now offers digital legal entities as a service.
What’s the idea behind the Amazing Blocks?
Nicolas Weber: Amazing Blocks always strives to be a pioneer in legally compliant blockchain applications. We were for instance the first to tokenize equity in line with the Liechtenstein Blockchain Act as well as being founded solely with crypto assets as an initial capital contribution.
While blockchain may still be hard to understand and use for some, our vision is to build tools - basically the shovel to the gold rush - for tokenization projects of any kind. This means private, public sale and any use case thus literally tokenizing everything. In the emerging token economy, shares are tokenized, alternative assets such as art or machines, IP, collectibles, fiat and much more. We aim to offer knowledge and holistic, intuitive, white-labelled software for the entire life cycle.
Patrycja: Amazing Blocks was launched during the pandemic, what’s the journey so far? It seems like you’ve done a lot in a very short span of time and although it’s been a short but impactful one.
Nicolas: Thank you for the kind feedback! The pandemic has posed many challenges on all levels of society. The blockchain space however has frankly just kept on flourishing.
Through the decentralized features and digital focus, business was and is able to continue. That is something which can be described as fortunate, does have a sour appetite as so many people are suffering these days. Actually, there have been many efforts within the space that were aimed to cope with the COVID-19 imposed hurdles such as a hackathon organized by amongst other AI - Blockchain project SingularityNET. While crypto prices have been skyrocketing, the tokenization ecosystem has also grown significantly.
The first necessity is to educate people and hence seamlessly onboard them to the token economy. Consequently, we focused a lot on providing content like knowledge articles, podcast, live events etc. Here the goal is to have an impact in terms of teaching people about the perks of DLT.
Patrycja: I often get the sense of fear, especially from more traditional finance professionals or independent business owners when they hear about crypto. Adopting blockchain seems to be the future of finance, law and tech. Tokenization of shares gives your business transparency and is compliant with all the laws and regulations. Can you tell us more about the benefits for businesses? Why do you think it’s becoming more and more common?
Nicolas: Tokenization allows the user to efficiently apply blockchain paired with cryptographic tokens to financial instruments. With the increasing adoption of blockchain throughout industries, it becomes evident that benefits like P2P, instant settlement, transparency, cross-border transfers, frictionless and more are too strong to ignore. Now we have the opportunity to decentralize inaccessible, illiquid assets and morph them into 24/7 traded and securitized tokens. The most feasible application is the primary market, where fundraising can be conducted with a few clicks on an intuitive UI. The goal is to have a product people can use without having to know what blockchain is - similar to the internet - we can however leverage the obvious advantages.
Patrycja: Some companies we are working with are familiar with blockchain, still many aren’t. How is tokenization done? What is the process?
Nicolas: Generally speaking, tokenization is the creation of cryptographic tokens on a DLT-based system (e.g. blockchain). Now leveraging a peer-to-peer network allowing decentralized value exchange - mostly in the form of data - tokens with a variety of functions can exist in the built ecosystem of the token economy. It can be for instance governance tokens in DAOs, stable coins backed by currency such as the Dollar, there can be basket tokens which basically are indices of tokenized assets or security tokens. The latter is what we at Amazing Blocks focus on: digitizing assets by applying tokenization. When you mint a token - the correct term for creating - you trigger at least one smart contract that subsequently generates the tokens. The tokens are held in a wallet that is either custodial or non-custodial, basically, like a digitized portemonnaie that only the owner controls. Here the public key is the address to which you can transfer tokens, while the private key (and often seed phrase) is in the best case only known by the actual owner of said wallet. Now held in a wallet, which is transparently viewable - not identifiable - on block trackers such as Etherscan, the token is integrated into the token economy.
Patrycja: What type of companies can benefit from Amazing Blocks?
Are there any restrictions or limitations as to the type or size of companies?
Nicolas: Our slogan is “Tokenizing Everything” and we aim to live by that standard. From a consulting and tech perspective, we can adjust to any tokenization use case. Our software can be fully customized, white-labelled and utilized for any use case. We have specified solutions for the primary market with aspects such as a Blockchain-based digital shareholder register, but can also provide holistic platforms which allow the creation of decentralized marketplaces. Hence to us, there are no restrictions as to whom we may work with, happy to support anybody joining this auspicious industry!