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Tokenomics 101

Updated: Jan 10

A solid investing plan allocates your funds among several investment areas. So you have a healthy mix of stocks, bonds, and, of course, real estate. Ffractionalised real estate investing allows you to start investing at a young age or on a restricted budget.

The value of real estate is steady.

One of the biggest benefits of real estate is its low risk. There will always be a need for decent homes. Real estate is a secure sanctuary for anyone looking to invest their money with no risk.

Tokenization is a feature of the blockchain using the power of cryptography to divide large assets into smaller fraktions.

There are different types of tokenisation

1. Vaultless tokenization In this, the sensitive information is removed from a database or other software, then sent to the tokenization service provider to be stored. The tokenized data is stored in a tamper-resistant environment while the original data remains. This approach minimizes the risk of unauthorized access or modification, but it can be expensive and challenging to implement. 2. Per-record Tokenization It takes place on individual records whenever an application accesses them. The sensitive values are retrieved and replaced with tokens in real time before being presented to any person with access to those records. This approach protects data from unauthorized access but is difficult and expensive to implement. 3. Database Encryption It combines the benefits of both approaches, including protecting against unauthorized access with faultless tokenization and creating encrypted tokens for each record as per-record tokenization. However, database encryption can be complicated to implement. 4. Tokenization on a Single Database Server In single database server tokenization, sensitive records are sent to a separate server and stored as tokens. The tokens are then retrieved and stored in a tamper-resistant environment. The original data is then loaded into the database whenever the sensitive records are to be accessed. While this approach provides some protection, it is difficult and expensive for all users to have access to the same tokens at all times. 5. Backstage Tokenization It refers to securing other information or data that might be easier to steal but is not as sensitive as direct access information. It is a way of protecting less sensitive but still valuable information from unauthorized access by personnel who do not need it. It is possible to provide the same benefits as faultless tokenization with this approach. 6. Database In this, sensitive information is stored in another database or storage system using an encrypted token instead of raw data. This approach helps reduce the need for constant updating to safeguard against unauthorized access. The major drawback of this method is that it requires additional storage space, which might make a company’s databases too large for its needs. It is gaining popularity due to its robustness in securing sensitive information. However, to implement this technology, policies, and procedures should be well thought out and implemented with the involvement of all affected parties to ensure smooth running and efficiency. It also needs to be done with utmost care to avoid potential drawbacks.

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