So, let's start with the basics: what is an asset? In fact there are two kinds of assets: tangible (assets that have natural presence) and intangible (assets that don't have natural presence). Let's distinct the two: a book is a tangible asset. The text in the book is an intangible asset. Work hours for instance is an intangible asset.
Another distinction of assets is dependent on time. In this, we have current assets (assets we already own) and future assets (assets we intend to own or build, plan to own or build, or working on owning or building). The easiest way to present this is work hours. Hours you have worked for an employer is a current asset, while your scheduled work timetable for next week or next month is a future asset in regards of work hours.
Future assets may bear equal corresponding liabilities for the prospective owner of each asset unit, until they become current. In the work timetable example, you cannot actually count your work hours as such, until you have worked those hours.
Let's now come to tokens.
Tokens are units representing an asset, whether it's tangible or intangible, current or future. Money is the most flexible token invented, because it may represent many different assets. However, as you may already know, tokens may only exist when they correspond to a contract - a real contract - that rules how an asset may be tokenised, and what happens at the end of the contract, if there is one. For instance, if one would decide to tokenise a building, which means the ownership of the building, a real contract has to be drafted, describing under civil law, at minimum, how the ownership of the building is transformed from its current form to a tokenised one, how many tokens are to be created, who owns the tokens, and if (and how) those tokens may be transferred. Any aspect that is not covered in the contract is either resolved by common civil law, or by legal judgement, if and when a conflict occurs.
Cryptographic contracts only describe the form, creation, distribution, transfer, and expiration of cryptographic tokens. They do not describe whether the underlying asset does or may exist in the future or not, they do not determine whether the original token creator/owner actually owns (or plans, intends, or works on owning) the asset, and they do not describe what happens at the expiration of the tokens, or the end of useful life of the tokenised asset.
Most token creators follow the easy way of transformation of the most common form of token, the fiat money, into another form, that may be used to obtain usable assets (aka products or services) offered by the cryptographic token creator. Tokenisation of a business or an asset is a hugely more complex work, and this is what we will be describing in this blog, by presenting the method we are following to tokenise (at least in part) our business.
So, stay tuned!