Council Post: How Tokens Are Shaking Up Industries And Creating New Economies
(Source: forbes.com)

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(Original link: forbes.com)

Getty We've all seen how ICOs have received a ton of hype over the last couple of years and read the assertions that blockchain technology could potentially be the biggest disruptor to technology since the internet. We then witnessed the crypto crash when many coins declined in value, and as a result, those seeking to fund spurious business models sunk with a thud.
What has emerged is a number of business cases where tokens are used to create new opportunities that disrupt traditional industries and create new monetization opportunities.
Security Tokens Are Shaking Up Traditional Industries
With STOs, or security token offerings , considered by some as ICOs with legal compliance and the digitization of conventional securities by others, they have created a space for the tokenization of many assets, commodities and financial instruments.
Such disruption is underway by HYGH, a German company that's aiming to democratize out-of-home (OOH) digital advertising by using a platform that connects owners of public displays with advertisers in a peer-to-peer fashion to create advertisements in real time. (Full disclosure: I'm a personal advisor for HYGH.)
It can be likened to the early Airbnb model. HYGH has created a business to business (B2B) platform that means anyone with a screen can become an advertiser, regardless of advertising competence or company size and thus generate passive income. The company's app turns any screen into highly flexible ad space, whether located in a hotel, shop window or professionally mounted outdoor window. The company is selling its future revenues now, with investors in the STO getting 9% of the total net revenue flowing through the platform with payouts issued quarterly.
Similarly, London startup VID is utilizing a fundraising STO to growth its mission to enable people to access digital memories as easily as an internet search. It has created a blockchain- and artificial intelligence (AI)-based media platform that captures and curates digital memories
Tokens Are Creating Data Economies
Some of the most interesting innovations around tokens are evident in internet of things (IoT)-connected initiatives and personal data. Back in 2017, IDC predicted that by the end of 2019, 20% of all IoT deployments will have enabled basic blockchain services. Imagine if merely by wearing clothing you could generate data that could be sold to researchers, marketers and retailers?
Well, wearables manufacturer Loomia has created smart clothing where each garment is embedded with sensors that collect data about temperature, motion or frequency of wear, which is stored it a battery pack called the Loomia Tile that powers Loomia's technology and also doubles as an Ethereum-based ERC-20 token. Each transaction is secured in smart contracts that are stored in the blockchain. The data can then be sold to marketing companies and researchers as the wearer chooses, creating a monetized data exchange.
Despite public concern about the privacy of their data, many people are keen to share their medical data to further develop medical innovation as it relates to complex health conditions. This is evidenced by the apps built on Apple's Research Kit being responsible for high numbers of consumer participants in medical research, leading to increased medical insights into complex and understudied health conditions.
But it follows that health consumers are keen to not only share their health data but also be compensated financially. Embleema has created a blockchain network that allows patients to offer their own medical data to medical researchers in return for real-world evidence (RWE) tokens. This has the impact of accelerating medical research, particularly in regard to creating new medication.
And in the world money, Kinesis Monetary System is working on tokenizing fiat currencies. The company is bringing evolution to a monetary system that has existed for many many centuries. By tokenizing "hard to move and spend" assets such as gold and silver, it is working on bringing about a financial revolution. (Full disclosure: I'm an advisor for Kinesis.)
The potential for a tokenized economy is boundless as we see an increase in person to person payment models in energy trading and the development of vehicle-to-vehicle payment models, to name a couple of examples. The business models of today differ exponentially from those that preceded them, and it’s likely that future technological innovations will create even more opportunities for transforming industries and creating new economies.
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