Why Crypto Tokens Are the Perfect Building Blocks for a Global IP Marketplace Lexit Follow Jun 29, 2018 · 3 min read

Markets are responding to the fact that practically anything can be tokenized through the use of blockchain technology: it makes things easier to authenticate, thus more secure, and can lead to significant cost savings.

How does it work?

A token represents the value of currency on the platform and just means that everything can be completely standardized.

Features such as listing fees, anti-spam payments, monetarily backed ratings — and anything else you can think of — mean that a crypto token is hugely useful for facilitating smooth and rapid transactions throughout the entire platform.

This means that IP rights could be traded on a global scale in very little time, in fact no time at all compared to how the process works now. The token can be exchanged thereafter for another currency or even reinvested into other assets or technology listed on the marketplace.

The transfer of intellectual property these days still relies heavily on paperwork and manual administration while being notoriously open to fraud and abuse.

But IP on a blockchain-powered market can package in immutable evidence of ownership, set to automatically finalise upon certain conditions being met and with a clear definition of what is for sale.

There is practically no limit to who benefits

This stands to benefit A-list celebrities, for example, as they often have numerous income streams from the intellectual property that is their brand, and it could make it possible for them to see near limitless growth in the absence of labour intensive paperwork.

Smart contracts could simply verify all deals automatically meaning that they might be able to conduct more product endorsements, brand placements, and licensing deals than ever before.

Widespread adoption could also usher in a new technology and information boom. Currently, companies and research institutes across the world sit on intellectual property that they would love to use or sell, but lack the time, resources, and contacts to do so.

The problem is that particular IP often has a specific buyer, possibly in a unique situation, which means that this can be a significant obstacle for smaller ventures who have only local reach.

So a global marketplace, made possible by the near endless scalability of blockchain, could eventually avail these problems. Standardized tokens on a straightforward buy/sell platform would allow companies to look for relevant technologies and research that is of value to them.

Smart contracts mean that it’s possible to trade intellectual property freely and quickly between interested parties with total transparency; the use of blockchain means that bids, value estimates, and transaction volumes can never be altered.

LEXIT leads the way on blockchain-powered IP and M&A deals

LEXIT has created the first ever market for IP, assets, and companies that runs on blockchain technology.

The power of the platform is in the hands of the community with 80 million LXT, half of the total supply, to be released in the initial coin offering on 19 June — enter now at Tier 2.

Photo by Chris Liverani on Unsplash