Gartner : Fungible or Not - Blockchain Tokens are more than NFTs and Crypto

Published: 2022-01-18 15:10:13 ET IT

The world of blockchain-based tokens has been dramatically polarized. At one extreme, you have fungible assets such as bitcoin and other cryptos. Some cryptos have defied the predictions of most and have shot up to sky-high valuations. At the other end recently, non-fungible tokens (NFTs) have captured the imagination of all. Everyone from cool new musicians to staid old brands has dropped NFTs, with some reaching stratospheric prices.

[Link] While cryptos and NFTs attract all the attention, their shine shadows the potential of tokens that do not belong in either extreme. The underlying basis of blockchain-based tokenization, their ability to own and manage digital assets on the internet, is much larger. Tokens can be useful to represent any new or current assets. In whole or parts, they can be programmed, traded, or exchanged. The ability to program, fractionalize, compose, or trade tokens while preserving ownership will create possibilities for commerce that were never possible before.

Fungibility is just one way to split the token world. All these other abilities need to be appreciated to extract the most value from this new technology. So, for tech companies and enterprises, the question to answer is not just if I should investigate NFTs and crypto. They should also ask what value can I capture as blockchain-based token assets for ownership and exchange? And how can I use various aspects - including fungibility, programmability, fractionalization, composability, and anything else - to drive new value for the future?

We have been researching tech companies involved in tokenization. If are interested in participating, let us know using the comments section below.

Disclaimer

Gartner Inc. published this content on 18 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 January 2022 20:09:01 UTC.