Tokenization of Real World Assets - Jurat.io
Tokenization on the JTC Blockchain: Bridging Property Rights in Real World Assets
Tokenization. It’s blockchain’s next great frontier. Tokenization can democratize ownership by digitizing real world assets, but an overwhelming friction must be addressed: the lack of legal recourse on-chain. For example, what happens when a hacker steals the tokenized deed to a house and locks it in a DeFi protocol? Does the house belong to the protocol or the owner?
Real-world tokenization needs an effective way to enforce real-world legal rights. Otherwise, no one can rely on the tokens and the system grinds to a halt.
That’s where Jurat fits in.
NFT Ordinals on the JTC Blockchain offer an upgraded approach to tokenization that affords direct access to legal enforcement through court-connected technology. The result is that individuals, attorneys, and asset management projects can create tokens that carry out real-world legal rights.
Digital Asset Tokenization Explained
To understand the benefits of tokenization, it’s good to start by considering how we traditionally buy and sell property. For example, to sell a house, there must be a paper contract between buyer and seller plus a paper deed to prove ownership. Because the deed’s legitimacy is paramount, it is not only necessary to use lawyers but also the government itself must get involved to become the official custodian of the paper deed. If the buyer later wants to resell the property, the expensive process starts all over again.
In Web3, tokenization can eliminate all of these intermediaries and vastly speed up transactions by providing proof of sale and ownership on the blockchain.
The Benefits of Tokenization: Security and Efficiency in the Financial Market
The benefits of the tokenization of real-world assets include the following:
Tokenized assets can be traded instantaneously across borders between trading partners ... with little more than an internet connection and a smartphone or computer.
Tokenized assets are stored on blockchains where they can be used in conjunction with ... smart contracts that automate functions like closings, financing, and insurance.
Once an asset has been tokenized, it is easy to fractionalize the ownership among multiple wallets ... and in any given amount. Thus, smaller purchasers can participate in the market, unlocking liquidity and helping the asset achieve true value.
Tokenization can eliminate the need for intermediaries such as lawyers and government offices, saving ... both money and time. The average real estate transaction takes months to close and can cost 3-6% of the total transaction, which amounts to billions spent on this process in the US alone.
The Challenge Facing Tokenization
The lack of legal enforcement on-chain creates a massive friction which robs users of the benefits of tokenization. Big banks and legacy finance are taking advantage to dominate the industry by setting themselves up as the only bridge to the legal system. From this privileged position they extract fees, intrude on privacy, and deprive owners of self-custody. These are some of the very problems that Satoshi sought to fix with Bitcoin.
JTC Ordinals and the Tokenization of Real-World Assets
JTC’s court-connected Ordinals solve the problem.
With JTC Ordinals, the blockchain has direct access to the legal system so that a court can resolve the ownership of the token at the same time as the real world asset. There is no need for intermediaries – not even lawyers.
So, when a tokenized deed is stolen, a court order can return it to the wallet of the homeowner or protect an innocent buyer. The court system serves as the bridge between the blockchain and the real world asset.
That way, JTC Ordinals provide all of the benefits of tokenization in a format that preserves self-custody while providing effective enforcement of legal rights in the token.
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What People Are Saying About Us
One of the most innovative and visionary proposals… The revolutionary implications of having changing legal criteria acknowledged and acted upon through smart contracts is groundbreaking.
Once the mass population believes that their rights could be protected and enforced on the blockchain, the mainstream adoption of blockchain would be underway.
[Jurat] will provide a very strong competition to the ‘code is law’ philosophy when deciding whether to side with a court order or with a smart contract’s ‘blind justice’ by just doing what it was programmed to do.