New Worlds, New Opportunities Arising from Blockchain’s Automated Autonomy

Remember the last meme that made you LOL? Who receives royalties on its distribution? Likely no one.?

For some creators who release digital assets such as artwork or software applications on today’s internet, there’s little they can do to claim their ownership rights—other than shout into the void—let alone monetize their efforts.?

Blockchain technology offers a solution, providing a reliable way for:

• Creators to own and monetize their digital assets.
• Companies to generate revenue streams and entrepreneurs to raise capital.??
• Anyone with internet access to invest in virtual asset ownership.?
• An asset’s future to be decided among token-holders, rather than remaining vulnerable to the whims of tech giants.?

Blockchain tokenization is a new way to represent and transfer ownership.

When companies or individuals release an asset via a blockchain, they can sell tokens that digitally represent that asset. Each token holder’s ownership rights are coded into the blockchain's immutable record.?

Cryptocurrencies are the most common tokens today, but owners can tokenize almost any type of asset.?

As virtual activities grow more prevalent in the metaverse, so will tokenization. It is already a fast-growing trend, with the global tokenization market size predicted to grow from $2.3 billion in 2021 to $5.6 billion by 2026.

Image source: Markets and Markets?

Blockchain advantages of automated autonomy

Selling and buying tokens through decentralized blockchains offer levels of automated autonomy that traditional ownership models lack.

• Because blockchains record every transaction related to an asset, they can independently verify asset ownership.?
• Stakeholders can access every prior transaction.?
• All parties are notified of transactions, and no one can change a transaction after it is recorded.
• Embedded code automates the execution of agreed-upon terms, including payments and permissions for an asset’s use and transfer.?

Blockchains independently and automatically enforce ownership rights and ensure financial agreements are honored—without needing intermediaries such as banks, brokers, payment companies, and monitoring agencies to verify information or process transactions.?

Automated autonomy’s effects on virtual asset ownership

Currently, tech giants such as Google, Facebook, Microsoft, and other companies can limit access to digital assets on their platforms. They can raise or lower rates, remove or censor content, or shut down a technological capability that an asset owner relies on at any time.?

Consider how Facebook and YouTube can de-monetize or delete videos on a whim. PlayStation and Xbox prevent gamers from selling the in-game weapons, tools, clothes, maps, and other assets they buy while playing. In fact, players can’t even use their assets outside the game where they purchased them.?

Tokenization gives creators the option, and the confidence, to produce virtual assets in the metaverse without fear of censorship, exploitation, or monetization limitations. This is because they can 1) easily prove their ownership rights, and 2) other entities cannot limit how an owner uses their blockchain-based assets, nor can they prevent the transfer of an asset’s ownership.

New worlds bring new opportunities.

Yes, big tech companies often own the platforms where many creators want to be active using today’s internet.?

But in the metaverse, new worlds can be built on new platforms using new protocols. This is one of the opportunities for creativity and innovation that excite so many people about the metaverse.

Billions of dollars of tokens are traded every day, and no one has to place blind trust in profit-seeking corporations that can suddenly change their terms or shut down a service.?

Opportunities for creators and brands

In the metaverse, entrepreneurs can generate seed money by selling tokens with rights to the businesses, products, and intellectual properties they develop.?

Brands can create tokenized versions of their physical assets, like buildings or stores, and allow consumers to share ownership. They may also make and distribute digital products among customers that generate royalty streams on production and property rights.?

Metaverse communities where token holders receive rewards and join in shared experiences generate ROI through a loyal and engaged customer base.?

Opportunities for virtual asset buyers

Buyers, too, can feel safe purchasing assets with transparent records of their entire transactional history. Partial ownership through tokenization can lower the entry barrier to make financial investments and asset ownership more accessible to more people around the globe.?

Token holders can even share decision-making authority in community-owned, decentralized autonomous organizations (DAOs), which allows them to vote on an asset’s future evolution. DAOs promote a more democratic and inclusive metaverse world where everyone has a voice and a stake.

There’s still much to figure out about how we’ll use technology and apply the law in the metaverse. Regulatory uncertainties and other challenges plague our progress.?

But, as we move forward, Bill Tilley and Amicus Capital are here to help lawyers appreciate new opportunities that align with a fair, equitable, and inclusive society’s ideals. Call Amicus Capital or me at 877-926-4287 to learn more today.