Tokenization Primer

Last updated 5 months ago

Tokenization means many things to many people. This blog will clarify how it works in case of ZB platform.

Tokenization means different things to different stakeholders. Stakeholders in context being

  • Customer

  • Vendor

  • Investor

Most of the tokens are bought by investors for the speculative value. Hoping for the value of token to increase. It's the right hope and applies to every asset someone buys.

Customers only care about functionality tokenization provides. That is additional security and tamper-proof provenance. Tokens also affect throughput. Let's understand using metaphor of arcade (like Chuck e Cheese) tokens.

A given arcade has a limited number of tokens. These tokens are bought by customers to play the games. There is a certain speed at which these tokens get consumed. There is the maximum speed at which tokens will be consumed if everyone continuously plays. People do come to enjoy the games so they take breaks. Have drinks, talk to others etc.

There is a certain delay which it takes for tokens to get back to the cashier. Ideally they would like to do it on a nightly basis as it is inconvenience to the customers if they open the machines during business hours to retrieve tokens.