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... This brings us to the concepts of tokenization and NFTs, which will be discussed briefly in this section. Tokenization is now defined as the process of converting the ownership of assets, rights, and values from real-world to blockchain-backed digital world (Freni et al. 2020). These tokens can represent any values or access rights, such as shares in a company, ownership of properties, project bonds, or even electricity produced by energy plants. ...
Digital Twins (DTs) have recently drawn considerable attention in the AEC industry and academia. Despite their applications, most models typically represent an isolated DT without considering how they can connect to other DTs, where they can share data. Blockchain-based solutions, and specifically Non-Fungible Tokens (NFTs), have provided various features that can be seen as a promising solution to build the lost bridge for data sharing between different stakeholders in DTs. This study capitalizes the advantages of NFTs to propose a framework for DT knowledge sharing. This framework is followed by providing future prospects of data management in the DT field. Our solution enables the ownership of various DT components, leading to the establishment of a secure data marketplace within the context of the AEC virtual world. This study can also serve as a fundamental source for further investigation by researchers and practitioners to develop an interoperable built Metaverse, where all DTs, in all Levels of Details, can exchange knowledge.
... With the advent of blockchain technology, tokenization acquired broader meaning. It is now defined as the process of converting the ownership of assets, rights, and values from real-world to blockchain-backed digital world (Freni et al., 2020). These tokens can represent any values or access rights, such as shares in a company, ownership of properties, project bonds, or even electricity produced by energy plants. ...
The architecture, engineering, and construction (AEC) industry is widely known for being fragmented. In this situation, blockchain technology has been introduced as a promising solution to bring trust and transparency to the industry. As blockchain technology continues to evolve, it has embraced new capabilities and features, including Fungible-Tokens (FTs) and Non-Fungible Tokens (NFTs), which have recently drawn significant attention in various industries. Tokenization can be seen as a next-generation solution to address challenges in the AEC. However, the application of tokenization for the AEC industry has remained undeveloped. To address this gap, this study provides an overview of tokenization, followed by an investigation of its applications in the AEC industry using a literature review method. By illustrating a clear outlook of the potential advantages and challenges, the study helps to set realistic expectations over the potential improvement that tokenization can bring. This can also serve as a fundamental source for further investigation by researchers and practitioners.
... In this respect, the main problem of cryptoart is the high energy cost of NFT tokenisation. Tokenisation is understood as the process of converting anything into a scarce digital asset through the "(…) encapsulation of value in tradeable units of account, called tokens" (Freni et al. 2020). Thus, through the "(…) creation of a self-governed (tok)economic system, whose rules are programmed by the token issuer" (Freni et al. 2020), tokenisation offers the possibility of creating digital scarcity to it and, at the same time, eliminating the commercial intermediation that makes artworks more expensive, saving time and money in transactions and, therefore, reducing costs and improving profits (Freni et al. 2020, Heredia-Querro, 2021Krause and Tolaymat, 2018). ...
... Tokenisation is understood as the process of converting anything into a scarce digital asset through the "(…) encapsulation of value in tradeable units of account, called tokens" (Freni et al. 2020). Thus, through the "(…) creation of a self-governed (tok)economic system, whose rules are programmed by the token issuer" (Freni et al. 2020), tokenisation offers the possibility of creating digital scarcity to it and, at the same time, eliminating the commercial intermediation that makes artworks more expensive, saving time and money in transactions and, therefore, reducing costs and improving profits (Freni et al. 2020, Heredia-Querro, 2021Krause and Tolaymat, 2018). As stated by Freni et al. "The blockchain made it possible to algorithmically solve the double-spending problem and introduced the concept of digital scarcity, as opposed to the digital abundance characterizing the Internet" (Freni et al. 2020). ...
... Tokenisation is understood as the process of converting anything into a scarce digital asset through the "(…) encapsulation of value in tradeable units of account, called tokens" (Freni et al. 2020). Thus, through the "(…) creation of a self-governed (tok)economic system, whose rules are programmed by the token issuer" (Freni et al. 2020), tokenisation offers the possibility of creating digital scarcity to it and, at the same time, eliminating the commercial intermediation that makes artworks more expensive, saving time and money in transactions and, therefore, reducing costs and improving profits (Freni et al. 2020, Heredia-Querro, 2021Krause and Tolaymat, 2018). As stated by Freni et al. "The blockchain made it possible to algorithmically solve the double-spending problem and introduced the concept of digital scarcity, as opposed to the digital abundance characterizing the Internet" (Freni et al. 2020). ...
The digital transformation of the art world has become a revolution for the sector. Cryptoart, based on non-fungible tokens (NFT), is attracting the attention of artists, collectors and enthusiasts for its ability to tokenise any element that can be sold as art in the digital market. In this way, it is able to become a scarce resource and an economic asset by encapsulating the market value of a piece of digital art, which may or may not have a reference in the real world. This study will delve into the ethical aspects underlying what is known as the NFT Revolution, particularly impacts related to the abuse or destruction of cultural heritage, speculation and the generation of economic bubbles and environmental unsustainability. To this end, this research has been carried out within the framework of a hermeneutic-critical proposal for analysing, understanding and prescribing cryptoart and its processes. This, methodology, typical of the human and social sciences, critically analyses the current context of the digital transformation of art through the study and interpretation of bibliographical sources and case studies in order to reconstruct the keys and conditions of possibility that guide its development in a fair and responsible way
... Tokenization is the process of replacing real (material) objects with digital counterparts. Freni et al. define the process of tokenization as the digitization of the value of an object (Freni et al. 2020). In other words, tokenization is the process of replacing the asset's value with a token that reflects this value. ...
Blockchain technology opens up a wide area for innovative solutions in different areas that can potentially change entire sectors of the economy. The main advantages of blockchain implementation are the exclusion of intermediaries from many operations, the confidentiality of information, and the high speed of transactions. Nowadays, projects for the tokenization of various types of assets are being implemented around the world. A popular solution for developing enterprise blockchain systems is the Hyperledger Fabric platform, which is an open-source project of the non-profit technology consortium Linux Foundation. The study of existing cases is of undoubted importance for the further development of the practice of applying the blockchain. Thus, this research aims to analyze the capabilities of the Hyperledger Fabric platform and the blockchain projects created on its basis for the industry. The research considers cases of the extractive industry: Norilsk Nickel’s Atomyze platform and Circulor’s project in Rwanda.
... In this respect, the main problem of cryptoart is the high energy costs of NFT tokenisation. Tokenisation is understood as the process of converting anything into a scarce digital asset through the "(...) encapsulation of value in tradeable units of account, called tokens" (Freni et al., 2020). Thus, through the "(...) creation of a self-governed (tok)economic system, whose rules are programmed by the token issuer" (Freni et al., 2020), tokenisation offers the possibility of creating digital scarcity to it and, at the same time, eliminating the commercial intermediation that makes artworks more expensive, saving time and money in transactions and, therefore, reducing costs and improving profits (Freni et al., 2020, Heredia-Querro, 2021Krause & Tolaymat, 2018). ...
... Tokenisation is understood as the process of converting anything into a scarce digital asset through the "(...) encapsulation of value in tradeable units of account, called tokens" (Freni et al., 2020). Thus, through the "(...) creation of a self-governed (tok)economic system, whose rules are programmed by the token issuer" (Freni et al., 2020), tokenisation offers the possibility of creating digital scarcity to it and, at the same time, eliminating the commercial intermediation that makes artworks more expensive, saving time and money in transactions and, therefore, reducing costs and improving profits (Freni et al., 2020, Heredia-Querro, 2021Krause & Tolaymat, 2018). As stated by Freni et al., "The blockchain made it possible to algorithmically solve the double-spending problem and introduced the concept of digital scarcity, as opposed to the digital abundance characterizing the Internet" (Freni et al., 2020). ...
... Tokenisation is understood as the process of converting anything into a scarce digital asset through the "(...) encapsulation of value in tradeable units of account, called tokens" (Freni et al., 2020). Thus, through the "(...) creation of a self-governed (tok)economic system, whose rules are programmed by the token issuer" (Freni et al., 2020), tokenisation offers the possibility of creating digital scarcity to it and, at the same time, eliminating the commercial intermediation that makes artworks more expensive, saving time and money in transactions and, therefore, reducing costs and improving profits (Freni et al., 2020, Heredia-Querro, 2021Krause & Tolaymat, 2018). As stated by Freni et al., "The blockchain made it possible to algorithmically solve the double-spending problem and introduced the concept of digital scarcity, as opposed to the digital abundance characterizing the Internet" (Freni et al., 2020). ...
The digital transformation of the art world has become a revolution for the sector. Cryptoart, based on non-fungible tokens (NFT), is attracting the attention of artists, collectors and enthusiasts for its ability to tokenise any element that can be sold as art in the digital market. In this way, it is able to become a scarce resource and an economic asset by encapsulating the market value of a piece of digital art, which may or may not have a reference in the real world. This study will delve into the ethical aspects underlying what is known as the NFT Revolution, particularly impacts related to the abuse or destruction of cultural heritage, speculation and the generation of economic bubbles and environmental unsustainability. To this end, this research has been carried out within the framework of a hermeneutic-critical proposal for analysing, understanding and prescribing cryptoart and its processes. This, methodology, typical of the human and social sciences, critically analyses the current context of the digital transformation of art through the study and interpretation of bibliographical sources and case studies in order to reconstruct the keys and conditions of possibility that guide its development in a fair and responsible way
... The disruptive potential lies in expanding the concept of value that can be partitioned and traded beyond purely economic terms to include, for example, reputation, work, copyright, utility and voting rights. In other words, tokenization represents a form of digitalization of value, and just like the internet enabled the free and fast circulation of digitized information, the blockchain is allowing the borderless flow of digitized value (Freni et al., 2020). ...
Purpose
The purpose of this study is to identify the possible efficiency gains in using tokenization for the execution of public expenditure on governmental investments.
Design/methodology/approach
Through design science research methodology, the exploratory research produced a tokenized prototype in the blockchain, through the Ernst and Young OpsChain traceability solution, allowing automated processes in the stages of public expense. A focus group composed of auditors from the public sector evaluated the possibility of improving the quality of information available in the audited entities, where the tokens created represent and register the actions of public agents in the blockchain Polygon.
Findings
The consensus of the experts in the focus group indicated that the use of tokenization could improve the quality of the information, since the possibility of recording the activities of public agents in the metadata of the tokens at each stage of the execution of the expenditure allows the audited entities the advantages of the information recorded on the blockchain, according to the following ranking: first the immutability of audited data, followed by reliability, transparency, accessibility and efficiency of data structures.
Originality/value
This research makes an empirical contribution to the real use of tokenization in blockchain technology to the public sector through a value chain in which tokens were created and moved between the wallets of public agents to represent, register and track the operations regarding public expense execution.
... To provide a comprehensive understanding of the blockchain tokens, from their creation to classification, it is required first to provide an overview of the meaning appointed to this concept in addition to the concept of tokenomics and tokenization. Freni et al. [94] consider blockchain tokens not to have an intrinsic definition, but rather as a tool to exchange value within the blockchain, while the process of tokenization is the encapsulation of digital or real-world assets and assigning them a digital representation (token) that can be traded on the blockchain. This process allows any kind of value to be managed and exchanged as a digital asset and highlights the ability to shift from economics to tokenomics, where tokenomics represents the switch from economics, where stakeholders react to changes, to token economics, where the stakeholders adjust to the tokens [20]. ...
... Chen [96] divides the tokens into five categories, namely digital money (including stablecoin), exchange (buy/sell and trade with other tokens), service platform (fundraising tool), wallet, and marketplace (used in commodity trading), while it identifies three relationships between addresses: creating, holding, and controlling. The main characteristics of the tokens are identified by Freni et al. [94] by analyzing over 40 platforms as technical (e.g., technological stack and blockchain infrastructure), behavior-possible actions with the token, inherent value with the factors that influence its price), and coordination between actors of the token-based ecosystem. Additionally, a morphological framework is proposed by Freni et al. [20] to further categorize tokens based on the ability to burn, expire, spend, fungible, divide, and trade from a behavior perspective and based on the underlying value, supply strategy, and incentive from the coordination standpoint. ...
Blockchain and tokens are relatively new research areas insufficiently explored from both technical and economic perspectives. Even though tokens provide benefits such as easier market access, increased liquidity, lower transaction costs, and automated transactional process, their valuation and price determination are still challenging due to factors such as a lack of intrinsic value, volatility, and regulation making trading risky. In this paper, we address this knowledge gap by reviewing the existing literature on token creation and valuation to identify and document the factors affecting their valuation, investment, and founding, as well as the most promising domains of applicability. The study follows the PRISMA methodology and uses the Web of Science database, defining clear research questions and objective inclusion criteria for the articles. We discuss token technical development, including creating, issuing, and managing tokens on an Ethereum blockchain using smart contracts. The study revealed several key factors that significantly impact the field of tokenomics: demand and supply, social incentives, market conditions, macroeconomics, collective behavior, speculation, and inclusion in index funds. The most relevant use cases of blockchain and tokens are related to the digitization of virtual and physical assets, accountability, and traceability usual in smart grids or supply chains management, social governance, and art and gamification including metaverse.
... However, it is observed that the query API can be replaced according to the application's needs. Some studies present promising substitute factors for it, such as the use of secure hardware [77,78], authentication via token [79][80][81], physically unclonable function (PUF) [82,83], and smart contracts [50,84]. ...
There are many security challenges in IoT, especially related to the authentication of restricted devices in long-distance and low-throughput networks. Problems such as impersonation, privacy issues, and excessive battery usage are some of the existing problems evaluated through the threat modeling of this work. A formal assessment of security solutions for their compliance in addressing such threats is desirable. Although several works address the verification of security protocols, verifying the security of components and their non-locking has been little explored. This work proposes to analyze the design-time security of the components of a multi-factor authentication mechanism with a reputation regarding security requirements that go beyond encryption or secrecy in data transmission. As a result, it was observed through temporal logic that the mechanism is deadlock-free and meets the requirements established in this work. Although it is not a work aimed at modeling the security mechanism, this document provides the necessary details for a better understanding of the mechanism and, consequently, the process of formal verification of its security properties.
... Prior literature has used varying terms for classes of tokens, mainly driven by the industry or application area within which they occur. Prior studies present taxonomies and classifications of tokens (Freni et al., 2020) with a focus, for example, on tokens for ICOs and crowdfunding (Fridgen et al., 2018;Oliveira et al., 2018) develop a taxonomy where they identify three main classes of tokens: cryptocurrencies/coins, tokenized securities, and utility tokens. Increasingly, there is a consensus around this three-part division into payment, asset, and utility tokens. ...
... Like other tokens, crypto tokens can serve as means of value exchange, information storage or asset representation, authentication or verification, and access. In addition, they can be incentive mechanisms, currencies, or financial instruments (Crisà et al., 2019a;Freni et al., 2020). The instantiation of a token transfer within a system can be done either automatically via specific token contracts, or manually, without the involvement of third parties (Chen et al., 2019). ...
... Finally, tokens provide their holders with certain rights. They are strongly associated with both property rights that can be owned and transferred with the token (Swan & De Filippi, 2017) as well as obligations which require that the holder of a token trusts its issuer (Freni et al., 2020). ...
Cyptographic tokens are one of the cornerstones of the new blockchain world but the knowledge about these digital objects is still limited. In this research, we argue that crypto tokens, cryptographically secured digital tokens connected to DLT systems, form socio-technical systems through their reciprocal relationship with their foundational DLT systems. We also argue that today’s crypto token systems evolved out of earlier physical and digital token systems, a socio-technical transition facilitated by changes in the wider socio-cultural, economic, and technical environment. Based on an extensive structured literature review as well as the application of text analytics methods to more than 506 blockchain whitepapers, we develop two results: a crypto token classification built around three crypto token archetypes, and a crypto token system taxonomy. Our findings are relevant for both blockchain researchers and practitioners alike by enhancing our understanding of complex blockchain systems.
... The shift from conventional monetary economics to nonmonetary tokenomics and the central role tokens play in blockchainbased ecosystems were analyzed recently in [13]. Decentralized blockchain technologies have been applied in a non-monetary context by exploiting a process known as tokenization in different value-based scenarios. ...
... They can be used as incentives to coordinate actors in a given regulated ecosystem in order to achieve a desired outcome. According to [13], tokens have a disruptive potential to expand the concept of value beyond the economic realm by using them for reputation purposes or voting rights. Through tokenization, different types of digitized value can be exploited in an ecosystem of incentives by sharing the rewards and benefits among its stakeholders. ...
While the primary focus of 5G has been on industry verticals, future 6G mobile networks are anticipated to become more human-centered. Emerging cyber-physical-social systems (CPSS) aim at functionally integrating human beings into today's cyber-physical systems at the social, cognitive, and physical levels. CPSS are instrumental in realizing the human-centered Society 5.0 vision. Society 5.0 envisions human beings to increasingly interact with social robots and embodied artificial intelligence in their daily lives. In this paper, we build on our recent work on robonomics in the 6G era. Robonomics is an emerging field, which investigates social human-robot interaction and its sociotechnical impact as well as blockchain technologies and cryptocurrencies, not only coins but--more interestingly--also tokens. Specifically, we study the tokenization process of creating tokenized digital twins of assets and access rights in the physical and digital world, paying close attention to its central role in ushering in the future Web3 and its underlying token economy, the successor of today's information and platform economies. After introducing our CPSS based bottom-up multilayer token engineering framework for Society 5.0, we experimentally demonstrate how the collective human intelligence of a blockchain enabled decentralized autonomous organization (DAO) can be enhanced via purpose-driven tokens.
