Tokenizing real‑world assets (RWAs) refers to converting tangible or intangible crypto assets—real estate, commodities, art, bonds, intellectual property, and more—into digital tokens on a blockchain. These tokens represent ownership, rights, or claims to the underlying asset. In 2025, tokenization is rapidly transforming finance, offering a bridge between traditional assets and decentralized infrastructure. With billions of dollars already tokenized globally, and institutional interest at an all‑time high, this is an ideal moment to understand how to tokenize assets step by step. This guide explores the benefits, processes, legal considerations, challenges, and opportunities for tokenizing real‑world assets in 2025. Why Tokenization Matters in 2025 Tokenization is not just a fad; it solves real problems: Fractional Ownership and Accessibility Pricey assets can be fractionalized into tradeable shares, opening the door to more investors across the planet. Liquidity Creation Even traditionally illiquid assets — like real estate or fine art — can be traded on secondary markets, offering owners a way to unlock cash without selling the asset outright. Transparency and Security Records managed on blockchain are tamper‑proof, auditable and provide investors with confidence over history of ownership and the integrity of transactions. Efficiency and Automation Smart contracts automatically send out dividends, process interest payments, and settle votes, streamlining back office tasks and settlement. Global Market Reach Cross‑border participation is enabled via tokenization, whereby compliance logic is embedded, enabling asset owners to have access to global liquidity pools. Understanding Key Concepts Before diving into the process, here are some fundamental terms: Step‑by‑Step Guide to Tokenizing Assets in 2025 Choose the Right Asset Not all assets are great candidates to be tokenized. Look for assets with: These can be things such as commercial property holdings, gold in the vault, diamonds, revenue streams, high end consumer goods, corporate owned debt, or even green energy credits. Establish the Legal Structure This is one of the most important aspects of it. Tokenization must reflect legal ownership. The common approach is to establish a Special Purpose Vehicle (SPV) or trust that has a legal title to the asset. In return, holders of tokens have shares or units of such entities. Important considerations include: Engage legal counsel early to ensure compliance and avoid regulatory pitfalls. Conduct Due Diligence and Valuation Investors must believe in the asset. This requires: Transparency builds investor confidence and makes tokens easier to trade. Select a Blockchain Platform and Token Standard The scale, cost and compliance of both have a lot to do with the blockchain you use. In five years, the existing winners may entail all or any of Ethereum Layer‑2s solutions, Polygon, Avalanche, and niche permissioned chains. Standards for tokens, such as ERC‑3643 and ERC‑1400, have built-in compliance capabilities such as whitelisting and transfer restrictions. Key factors to consider: Develop Smart Contracts Tokenization is empowered by smart contracts. They should: Contract security audits are essential before deployment. Integrate Oracles for Real‑World Data Oracles link the logic of a blockchain with data flowing in from the outside world. Use them to: Reliable, decentralized oracles reduce risk of manipulation. Mint and Distribute Tokens Once the smart contracts and legal structures are ready: Provide clear offering documentation, including rights, risks, and redemption procedures. Enable Secondary Market Trading Liquidity is a major advantage of tokenization, but it only materializes if trading is possible. Options include: Ongoing Management and Compliance Tokenization does not end after issuance. Ongoing responsibilities include: Legal and Technical Considerations Regulatory Compliance By 2025, regulators have a far clearer idea of how tokenized assets are treated, although it varies by country. Tokens are deemed securities, and disclosure documents, investor protections and licensed intermediaries are required. Non-compliance can also lead to penalties or being forced delisted. Custody and Ownership Rights For tangible assets, they need to be stored safely and insured. For financial assets, have the proper documentation and custody arrangements in place so token holders can enforce their claims in court if it becomes necessary. Security and Auditing Smart contract weaknesses are still an issue. Always get third‑party security audits and penetration tests done, and have a public bug bounty program. Valuation Integrity Investors rely on accurate valuations. Dispute and manipulation is prevented by independent appraisers, audit trails and oracle transparency. Challenges and Risks Even with its potential, tokenization faces hurdles: Trends to Watch in 2025 and Beyond Conclusion Tokenizing real‑world assets in 2025 is no longer experimental—it is becoming a mainstream financial strategy. By following a structured approach—choosing the right asset, creating a sound legal framework, deploying secure smart contracts, and planning for liquidity—asset owners and investors can unlock new value and efficiency. Done properly, tokenization increases transparency, broadens access, and creates opportunities for innovation in finance. However, it demands careful planning, regulatory alignment, and technical rigor. As blockchain infrastructure continues to mature, the tokenization of real‑world assets may become the default way to invest, trade, and manage ownership. Frequently Asked Questions What types of assets can be tokenized? Almost anything with verifiable ownership—real estate, precious metals, intellectual property, art, bonds, or revenue streams. Do token holders have legal ownership? Yes, if structured correctly through a legal entity like an SPV or trust. Legal documentation must specify token holders’ rights. Which blockchains are best for tokenization? Ethereum Layer‑2 networks, Polygon, Avalanche, and specialized permissioned blockchains are common choices in 2025. Are tokenized assets considered securities? Often yes, which means compliance with securities regulations is necessary. How is the value of the asset determined? Through independent valuations, periodic audits, and reliable oracle feeds for ongoing price updates. What are the main risks of tokenization? Legal uncertainty, low liquidity, technology exploits, and operational failures are the main risks. How do investors buy tokenized assets? They register on a compliant platform, complete KYC/AML verification, and receive tokens in a wallet or custodial account. Can tokens be traded after purchase? Yes, provided they are listed on a regulated marketplace or exchange that supports secondary trading. How are income or dividends distributed? Smart contracts automatically distribute payments proportionally to token holders’ balances. What is the future of asset tokenization?
In the ever evolving world of blockchain, numerous entrepreneurs and startups find themselves at the crossroads — where they are to make that all important decision of whether to go-ahead and launch a new-bee cryptocurrency or simply create a token on an existing blockchain. The approach you take can affect the technical foundations of your project, financial strategy, investor appeal, and long-term sustainability. Knowing the difference between cryptocurrencies and tokens is key to any founder making an entrance into the Web3 space where adoption of blockchain is happening in diverse industries, from supply chains, to healthcare, gaming and finance. In this post we will compare the main differences, advantages and disadvantages as well as use cases between tokens and custom cryptocurrencies to help you decide which is the best option for the goals of your startup. What is a Custom Cryptocurrency? A custom cryptocurrency is a digital currency that has been developed on its own blockchain. Consider Bitcoin, Ethereum and Litecoin. These are not just tokens — they are new digital currencies that run on their own decentralized ledgers which are created using ‘blockchain technology’. Creating a cryptocurrency typically involves: In other words, a cryptocurrency means owning the foundation and the currency — you build your own nation, complete with holdings, government and subjects. What is a Token? A token is a digital asset that is developed on an existing blockchain. Instead of building a blockchain from the ground up, you make use of an established blockchain ecosystem such as Ethereum, Binance Smart Chain, Solana, or Polygon. For example: Tokens can represent: In other words, setting up a token is faster, cheaper and easier than creating an entirely new cryptocurrency. Key Differences Between Cryptocurrencies and Tokens Here’s a breakdown to help you visualize the contrasts: Feature Custom Cryptocurrency Token on Existing Blockchain Blockchain Independent blockchain Built on another blockchain (Ethereum, BSC, etc.) Development Cost High (requires full blockchain build) Low (smart contract deployment) Time to Market Long (months to years) Short (weeks to months) Security Responsibility Full responsibility (must secure entire network) Inherited from host blockchain Scalability Depends on blockchain design Benefits from parent blockchain scalability Ecosystem Starts from zero Leverages existing ecosystem Regulatory Complexity Higher Moderate Examples Bitcoin, Ethereum USDT, SHIB, UNI Advantages of Launching a Custom Cryptocurrency Full Control Over BlockchainYou design consensus, block rewards, governance and network parameters. Brand CredibilityHaving your own blockchain is one way to make your startup seem more innovative and autonomous. No Dependency on Host Chain You’re not dependent on the technical limitations or fee structures of Ethereum or other chains. Scalability Potential You can design your blockchain to address specific use cases (e.g., quick micropayments or supply-chain systems). Long-Term VisionIf you want to develop your own ecosystem (such as Ethereum or Solana), a cryptocurrency gets you there.Community DevelopmentYou can involve other developers in the community to build on your native blockchain. Disadvantages of Launching a Custom Cryptocurrency High Development CostsDeveloping a blockchain must be implemented by a skilled team of developers and requires security audits and infrastructure costs. Custom Cryptocurrency: $35,000 – $2,50,000+ (complexity, audits, infrastructure etc.) Longer Time to MarketIt can take months or years to design, code and secure a blockchain. Adoption Challenges Without an ecosystem, your cryptocurrency might struggle to gain traction. Security RisksYou have to defend your blockchain from being hacked from experiencing an attack. Regulatory BurdenGovernments may regulate cryptocurrencies more heavily than tokens. Advantages of Launching a Token Faster Development It can take days or even weeks to launch an ERC-20 or BEP-20 token. Lower Cost No need to construct an entire blockchain — you can instead deploy a smart contract. Built-in EcosystemImmediately access wallets, exchanges, DeFi protocols, and developer communities. Security InheritanceThe tokens lean on the security of established blockchains, such as Ethereum. FlexibilityThis can cover anything: utility, governance, assets or NFTs. Disadvantages of Creating a Token Limited ControlYour project depends on the parent blockchain’s speed, fees, and upgrade schedule. Transaction Fees in Native Tokens Every transaction must be paid in the native blockchain currency (e.g., ETH for Ethereum, BNB for BNB Chain), not your own token. This can create a barrier for users. Network CongestionWhen the parent blockchain is overloaded, your token suffers high gas fees and slower performance. CompetitionWith thousands of tokens in existence, standing out requires strong marketing and community building. Regulatory RisksDepending on design, tokens may be classified as securities and subject to regulation. Scalability LimitsYour token inherits all scalability challenges of the host blockchain. When Should Your Startup Launch a Custom Cryptocurrency? Creating a cryptocurrency from scratch might be something that makes sense if your startup: Example: If you are building a new decentralized internet (like Polkadot) or a blockchain designed for gaming or IoT, then a custom cryptocurrency makes sense. When Does Your Startup Need a Token? A token is the best option if your startup: Example: If you’re building a DeFi protocol (think Aave), gaming NFT marketplace, or DAO governance system, a token makes sense. Cost Comparison: Cryptocurrency vs Token This contrast is why most startups begin with tokens and only switch to building custom cryptocurrencies when and if they achieve scale. Future Trends Conclusion The choice between custom cryptocurrency vs token is determined by your startup’s vision, resources, and timing. If you desire freedom, scalability, and full control—and you have the budget to sustain them—create a custom cryptocurrency of your own. If you value speed, cost efficiency, and an already developed ecosystem, a token is the smarter way to go. For the majority of startups, launching a token is the best way to test markets, raise funds, and gain adoption before needing a full blockchain. But if your master plan is to reinvent an entire industry with a custom blockchain, a cryptocurrency may be worth the extra investment. FAQs (Frequently Asked Question) What separates a cryptocurrency from a token? A cryptocurrency has its own blockchain, while a token doesn’t. Which one is more cost-effective to launch: a token or a custom coin? A token is significantly cheaper,
Introduction What if you buy a concert ticket online, arrive at the event, and find it is fake? Or, what if you paid 5X on the resale market for a ticket and the artist didn’t see a dime? There are many problems with ticketing. Coincidentally, in the gaming world, fans are frequently shut out of opportunities for fun and fair access to special events, experiences in games, exclusives, etc. Developers and publishers also lose opportunities on transactions because of bots, scalpers, or other insecure systems. NFT Ticketing systems are coming to the rescue. NFT Tickets are tickets that are built on the blockchain using NFT technology, and they are not just a ticket for admission; they are one-of-a-kind assets that are secured, verified, and programmed. They can identify whether or not a ticket has authenticity and eliminate fraud while giving fans (or players) digital collectibles that are perma-locked on a ledger. As well, there are growing numbers of NFT ticketing experiences from international music festivals to sports tournaments to esports competitions to concerts and events metaverse (the way tickets are purchased, sold & experienced). In this article, you will explore NFT Ticketing, what it is, how it works, the benefits, real-life examples of adoption, difficulties, and the future of events (and gaming). What Are NFT Ticketing Systems? NFT Ticketing represents the issuance of event tickets as non-fungible tokens (NFTs) on the blockchain. NFT tickets are NFTs that function more like traditional e-tickets, except that they do not have the same limitations as e-tickets. For example, if you purchase NFT tickets for attending a football match, it is more than just a QR code – it has become a digital asset for you and sits in your crypto wallet. The ticket may grant access to a VIP lounge, be something to collect, or provide discounts on future events. How Do NFT Ticketing Systems Work? Here’s a simplified step-by-step look: Minting TicketsEvent organizers mint NFT tickets on public blockchains like Ethereum, Solana, or Avalanche. Each NFT contains metadata of details regarding the event, such as event details, seat numbers, and unique identifiers. Sale & DistributionTickets are sold via NFT marketplaces or ticketing platforms. Fans can purchase using either fiat money or cryptocurrency, and the tickets are then placed in their digital wallets. Verification at the VenueAttendees highlight the NFT ticket through a wallet app or QR code. The blockchain will view all tickets and will verify attendance digitally in real time, virtually eliminating fraud. Resale or TransferTicket holders who are unable to attend can resell their NFT tickets. Smart contracts can allow for fair sales prices that restrict prices and allow organizers to make royalties on a subsequent sale. Post-Event UseThe biggest difference with NFT tickets compared to physical tickets is that with an NFT, as long as the ticket retains its value, the organization that minted the ticket has not lost any revenue after the event has occurred, even after subsequent purchase. Benefits of NFT Ticketing Systems Elimination of Fraud and Counterfeits Each month, counterfeit tickets rob fans across the globe out of billions of dollars. With NFTs, you can prove that there is only one single, unique, tamper-proof ownership of any ticket, and only the true ticket is valid. Example: FIFA lost thousands of dollars in ticket fraud for the 2018 FIFA World Cup. If a blockchain-based system like Aventus had been implemented to log every sale and transfer clearly, this cost to fans would have been avoided. Fair Resale and Anti-Scalping Scalpers often leverage ticket platforms to purchase bulk ticket sales only to sell the tickets for thousands of dollars more. NFTs would allow for smart contracts between the artists or sources of the tickets and the buyer that define resale characteristics such as price caps and transfer maxes. Example: The music ticketing platform YellowHeart allows artists to set max resales for their tickets. In this way, we can have reasonable resale prices and guarantee that fans will get access. New Revenue Streams for Organizers Typical ticketing does not generate commissions or any sort of profit for the organization to earn from secondary sales. If an NFT ticket is sold, secondary owners can earn royalties to maintain revenue after the initial sale against their entertainment brand. Example: An automated 10% fee, made possible through NFT secondary sales, would be collected anytime fans exchanged tickets in secondary engines, as the local music festival would earn from the two transactions. Enhanced Fan Engagement NFT tickets can be collectibles. Fans can hold their NFT ticket as memorabilia, or the organizer can offer to unlock future goodies for the holders similar to NFTs; for Example: VIP Lounges, future game offers, the storyline of the game, maybe even early-bird opportunities. Example: An NFT ticket to a gaming convention might offer holders NFT tickets that also act as game unlock passes, providing the holder a special discount at the convention or the ability to enjoy exclusive meet/greets. Rich Data & Analytics Organizers get historical data on ticketing distribution, resale activity, and audience demographics since each ticketing transaction is recorded on-chain. It could be useful in understanding and improving future events or marketing. Real-World Examples of NFT Ticketing Tixbase (formerly NFT-TIX) Tixbase used NFT-TIX ticketing at the EXIT Festival in Serbia and partnered with Passo to manage millions of tickets. The company won a regional innovation award for providing the first NFT event access & ticketing experience on the spot. Aventus Protocol Aventus Protocol partnered with FIFA in 2018 to issue blockchain tickets for a major sports event (often regarded as one of the largest sporting events worldwide). All tickets could be authenticated on the blockchain. YellowHeart YellowHeart is a blockchain ticketing platform that has worked with major artists such as Kings of Leon to create NFT tickets and digital music collectibles. Esports & Gaming Events Esports tournaments and metaverse concerts are experimenting with NFT tickets that grant entry but also provide in-game perks like exclusive weapon skins, digital badges, or early access to content.
If you have been looking into blockchains technology and cryptocurrencies for the past few years, you’re probably heard the terms layer 1 and layer 2 more than once. Whether you’re an investor actually putting time into where to allocate your capital, a developer pondering where to build your next dApp, or just a mildly invested crypto nerd who wants to sound cool at the dinner party, the layer 1 vs. layer 2 discussion is relevant. In 2025, this debate has only grown louder. Ethereum still dominates much of the developer and DeFi ecosystem, but Solana, Avalanche, and other Layer 1s are pushing boundaries. Meanwhile, Layer 2s like Arbitrum, Optimism, zkSync, and Base are scaling Ethereum in ways that seemed almost impossible just a few years ago. So, which will you choose? Layer 1 or Layer 2? Let’s dig deeper. What Are Layer 1 Blockchains? A Layer 1 blockchain is the base layer, or protocol, which transaction is recorded digitally on the network. Examples of layer 1s include Bitcoin and Ethereum. All activity happens “on-chain”, with either miners or validators validating it on the blockchain, which records every transaction. Layer 1s provide: Examples of Layer 1s in 2025: Again, we should think of Layer 1 as the “main highway.” Every car (transaction) goes on the same highway, and the overall network decides how to manage traffic. What Are Layer 2 Blockchains? A Layer 2 blockchain that sits on top of Layer 1 for the purpose to add improvements to scalability, efficiency, or cost. Instead of competing with the base layer, it extends it. The most notable example: Ethereum Layer 2s. Gas fees on Ethereum were prohibitive to the point simple swaps were costing $100+. This gave rise to Layer 2s. Types of Layer 2s: Layer 2 is like adding express lanes to the main highway. Cars move faster, but still anchor their legitimacy to the main Layer 1 road. Why the Distinction Matters in 2025 Here’s the reality: blockchain adoption is growing beyond DeFi and NFTs. Supply chain systems, gaming, RWAs, CBDCs, and corporate sustainability credits are starting to utilize relatable public or hybrid blockchains. This demand gives rise to the following three friction points: That’s why the Layer 1 vs Layer 2 conversation isn’t just academic. – it outlines where businesses and developers and investors are going to build and deploy real applications. The Case for Layer 1 Pros Cons Real-World Example In the 2021 bull run, when Ethereum users were paying over $200 per transaction at the height of congestion, it no longer made sense for the casual user and developers were forced to explore other networks. Some left for Solana (fast, cheap), others waited for Ethereum’s scaling roadmap to evolve. The Case for Layer 2 Pros Cons Real-World Example In 2023-2024 Arbitrum and Optimism saw huge growth in TVL (total value locked with billions of liquidity in DeFi). Coinbase even launched Base, a Layer 2 chain on Ethereum, subsequently legitimizing L2s as more than experimental… they were now the default scaling strategy for Ethereum. Layer 1 vs Layer 2: Which Is Better The real answer is not one is universally “better“, it’s about fit for purpose. Hybrid Approaches: The Future Is Multi-Layered By 2025, we will predominantly see hybrid models developed: This means you don’t really have to choose strictly one way or the other. Developers are designing and building with modularity in mind, utilizing Layer 1 security, and Layer 2 scalability. Final Thoughts The rise of Layer 1 vs Layer 2 blockchains isn’t a war with a clear winner. It’s more like the evolution of the internet itself. In the early days, websites had to choose between dial-up and DSL. Today, we take broadband for granted. Similarly, in the future, users won’t ask, “Am I on L1 or L2?” They’ll just expect apps to be fast, cheap, and secure. The best builders and investors today will anticipate that reality and position themselves accordingly. So, if you’re asking: Layer 1 or Layer 2? The smarter answer is: both — strategically, depending on your needs. FAQs on Layer 1 vs Layer 2 Blockchains 1. What is the difference between Layer 1 and Layer 2 blockchains? Layer 1 blockchains are base networks that processes and secures transactions directly (e.g.: Ethereum, Solana, Bitcoin). Layer 2 blockchains are scaling solutions built on top of layer 1 blockchains that improve the speed and cost of transactions, while Layer 1 still secures the transaction. 2. Is Ethereum a Layer 1 or Layer 2? Ethereum is a layer 1 blockchain, however it has many layer 2 solutions on top of it to help with the scaling and reducing gas fees. (e.g.: Arbitrum, Optimism, zkSync) 3. Why do we need Layer 2 blockchains if Layer 1 exists? Layer 1 blockchains often suffer from scalability issues, such as high gas fees and low throughput. Layer 2 blockchains and solutions allow for improved scalability and reduce costs for the user by processing transactions offchain or in batches. 4. Which is more secure: Layer 1 or Layer 2? Layer 1 blockchains are generally more secure since they validate everything on-chain. Layer 2 blockchains get their security from the layer 1 blockchain they are built on, however there can sometimes be vulnerabilities in the infrastructure and bridges around them. 5. Are Layer 2 blockchains the future of Ethereum? Yes. Ethereum’s roadmap is heavily dependent on scaling with layer 2 rollups, ideally Ethereum will act as a settlement layer, while most user activity happens on Layer 2. 6. Which is cheaper: Layer 1 or Layer 2? Layer 2 blockchains are much cheaper. A swap on Arbitrum might cost a few cents, and on Layer 1 Ethereum the same swap could cost a few dollars especially during peak times. 7. Should I build my dApp on Layer 1 or Layer 2? It depends on what you are trying to do. If you need max security and liquidity choose a Layer 1 like Ethereum. If you need fast, low-cost transactions – think
