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What Is Tokenisation, And Why Is It So Important ?

Since the days of clay tablets, people have been recording the exchange of goods and services. As we evolve in the digital age, recording these transactions has been much more complex whether as the exchange of things of value between two parties, documenting goods moving through the supply chain, or making contractual agreements. The growth of global commerce and trade has created a network of desperate ledger systems, vulnerable to errors, fraud, and misinterpretation.

Take the diamond industry for example. The journey of a diamond from a mine to a consumer can take a complex landscape of legal, regulatory, financial, manufacturing, and commercial practices. Current supply chains have to rely on intermediaries every step of the way. From government officials, lawyers, accountants, dealers and banks. This adds time, and cost.

Diamond smuggling and fraud can hamper governments from collecting fair export taxes. Consumers and resellers face the prospect of purchasing counterfeit or unethically mined stones. The hyper ledger Blockchain technology has the potential to eliminate these vulnerabilities with transparent transactions. Blockchain offers all parties involved in a business network a secure and synchronized record of transactions. The Blockchain ledger records every sequence of transactions from beginning to end, whether it's hundreds of steps in a supply chain or a single online payment. Blockchain technology is a decentralized, distributed ledger that records the provenance of a digital asset. The data on a Blockchain cannot be modified, making it a legitimate disruptor for industries like payments, cybersecurity, and healthcare.