{"id":"CN7UbGStwl4","title":"Lesson 5: Tokenization","description":"The complexity of conventional database systems necessitates building large systems around digital records. However, tokenization offers operational efficiencies by converting a database entry into a cryptographically signed and validated record, allowing for electronic exchange. Tokenized assets provide structured and secured data, enabling synchronization among stakeholders without the need for messaging or confirmation delays.\n\nFor a better learning experience, sign up and enroll in this free course at: https://daml.talentlms.com/plus/catalog/courses/149","channel_name":"Digital Asset Training","published_at":"2025-02-20T00:00:00.000Z","thumbnail_url":"https://i.ytimg.com/vi/CN7UbGStwl4/hqdefault.jpg","transcript_text":"Humans have been using some sort of technology to represent and track things in their lives for a very long time. As soon as people started drawing on rock walls, we began the process of saving information outside of our heads that we could share and refer to later. This evolved to paper... and books… and then more recently to digital storage on computers. This move from physical to digital has had a huge impact on our economies and the way we do business. But, digitizing a record or a workflow still leaves some challenges and complexity. A large system usually has to be built around the digital record to move, retain, report, and monitor the record because of the way conventional database systems manage data. This is where tokenization can provide real operational efficiencies. When we talk about tokenization, we mean the process of converting a database entry into a cryptographically signed and validated record, or contract, that can be exchanged electronically. Tokenized assets can be structured and secured differently from standard enterprise databases, APIs, and applications. Conventional data is organized all together in a single large structure. An application or user must then find what is needed by sorting and querying the database to get the bits of information. That information is then sent as a message, with some agreed-upon rules, through APIs, to be shared inside or outside of an organization. This is what most applications look like at a basic level; a database, some connections with other servers and databases, and a way to present the information that’s been queried; often in a web browser. This works for a lot of situations. And, database technologies and applications have evolved to be very fast at reading, writing, and then sending that data to each other. But because all the data representing an asset is often organized with all the other data describing other assets, care has to be taken in how you represent that asset. Two organizations are likely to represent the asset in very different ways. Message-based transactions need time to send and confirm messages to each other. Especially in the financial industry, this creates a real challenge in knowing what has been done and when and can require some sort of reconciliation to resolve issues or mitigate risk. Often, the full history of an asset is not included in all this messaging. There might be metadata describing the asset, but the full history stays with the organization who owns it and that history is rarely part of the transaction. Tokenization, when we are working with blockchains, distributed ledgers, and smart contracts, is different. First, the history and life cycle of the asset can become part of the token. This history is part of the value and security of the token. The data is no longer a collection of data points that need to be researched, datamined, or analyzed, the information is all self-contained. This process of encapsulating the data into a tokenized asset is sometimes referred to as a block or smart contract. Because these tokenized assets live on the distributed ledger, there’s no need for messaging and back and forth confirmations between the parties. Those in the multi-party application see a shared view of the asset. The data can be clearly synchronized among all the interested parties. And since the blockchain or distributed ledger application is built for the asset as a smart contract system, it’s possible to programmatically control the asset. The rules for the asset are set up when the asset is created and are associated with the asset. This isn’t just packaging data in new ways, it’s a new way to create value from the data by creating a complete product. Of course, there are areas where conventional databases excel and are used with tokenized or contract-based systems. Specifically when it comes to reporting and analyzing data, you’ll want to reference tokens as a record in a database to get the best of both tokenized digital assets and database records. Let’s review. Tokenized assets are not just a data record in a database, although they can be referenced with databases to get the best of both technologies. Tokens are contracts, packages, or blocks that can contain the lifecycle of the asset and be synchronized across all stakeholders in the asset.","transcript_synced_at":"2026-10-26T03:58:59.680Z","segments":[{"start_seconds":0,"text":"Humans have been using some sort of technology to represent and track things in their lives for a very long time.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=0s"},{"start_seconds":8,"text":"As soon as people started drawing on rock walls, we began the process of saving information outside of our heads that we could share and refer to later.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=8s"},{"start_seconds":18,"text":"This evolved to paper... and books… and then more recently to digital storage on computers.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=18s"},{"start_seconds":26,"text":"This move from physical to digital has had a huge impact on our economies and the way we do business.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=26s"},{"start_seconds":33,"text":"But, digitizing a record or a workflow still leaves some challenges and complexity.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=33s"},{"start_seconds":39,"text":"A large system usually has to be built around the digital record to move, retain, report, and monitor the record because of the way conventional database systems manage data.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=39s"},{"start_seconds":51,"text":"This is where tokenization can provide real operational efficiencies.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=51s"},{"start_seconds":57,"text":"When we talk about tokenization, we mean the process of converting a database entry into a cryptographically signed and validated record, or contract, that can be exchanged electronically.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=57s"},{"start_seconds":71,"text":"Tokenized assets can be structured and secured differently from standard enterprise databases, APIs, and applications.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=71s"},{"start_seconds":80,"text":"Conventional data is organized all together in a single large structure.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=80s"},{"start_seconds":85,"text":"An application or user must then find what is needed by sorting and querying the database to get the bits of information.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=85s"},{"start_seconds":93,"text":"That information is then sent as a message, with some agreed-upon rules, through APIs, to be shared inside or outside of an organization.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=93s"},{"start_seconds":103,"text":"This is what most applications look like at a basic level; a database, some connections","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=103s"},{"start_seconds":109,"text":"with other servers and databases, and a way to present the information that’s been queried; often in a web browser.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=109s"},{"start_seconds":117,"text":"This works for a lot of situations. And, database technologies and applications have evolved to be very fast at reading, writing, and then sending that data to each other.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=117s"},{"start_seconds":128,"text":"But because all the data representing an asset is often organized with all the other data describing other assets, care has to be taken in how you represent that asset.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=128s"},{"start_seconds":140,"text":"Two organizations are likely to represent the asset in very different ways.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=140s"},{"start_seconds":146,"text":"Message-based transactions need time to send and confirm messages to each other.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=146s"},{"start_seconds":152,"text":"Especially in the financial industry, this creates a real challenge in knowing what has","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=152s"},{"start_seconds":157,"text":"been done and when and can require some sort of reconciliation to resolve issues or mitigate risk.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=157s"},{"start_seconds":164,"text":"Often, the full history of an asset is not included in all this messaging.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=164s"},{"start_seconds":170,"text":"There might be metadata describing the asset, but the full history stays with the organization who owns it and that history is rarely part of the transaction.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=170s"},{"start_seconds":180,"text":"Tokenization, when we are working with blockchains, distributed ledgers, and smart contracts, is different.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=180s"},{"start_seconds":188,"text":"First, the history and life cycle of the asset can become part of the token.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=188s"},{"start_seconds":194,"text":"This history is part of the value and security of the token.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=194s"},{"start_seconds":198,"text":"The data is no longer a collection of data points that need to be researched, datamined, or analyzed, the information is all self-contained.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=198s"},{"start_seconds":208,"text":"This process of encapsulating the data into a tokenized asset is sometimes referred to as a block or smart contract.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=208s"},{"start_seconds":217,"text":"Because these tokenized assets live on the distributed ledger, there’s no need for messaging and back and forth confirmations between the parties.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=217s"},{"start_seconds":226,"text":"Those in the multi-party application see a shared view of the asset. The data can be clearly synchronized among all the interested parties.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=226s"},{"start_seconds":237,"text":"And since the blockchain or distributed ledger application is built for the asset as a smart contract system, it’s possible to programmatically control the asset.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=237s"},{"start_seconds":247,"text":"The rules for the asset are set up when the asset is created and are associated with the asset.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=247s"},{"start_seconds":254,"text":"This isn’t just packaging data in new ways, it’s a new way to create value from the data by creating a complete product.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=254s"},{"start_seconds":262,"text":"Of course, there are areas where conventional databases excel and are used with tokenized or contract-based systems.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=262s"},{"start_seconds":271,"text":"Specifically when it comes to reporting and analyzing data, you’ll want to reference","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=271s"},{"start_seconds":276,"text":"tokens as a record in a database to get the best of both tokenized digital assets and database records.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=276s"},{"start_seconds":284,"text":"Let’s review.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=284s"},{"start_seconds":286,"text":"Tokenized assets are not just a data record in a database, although they can be referenced with databases to get the best of both technologies.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=286s"},{"start_seconds":296,"text":"Tokens are contracts, packages, or blocks that can contain the lifecycle of the asset and be synchronized across all stakeholders in the asset.","url":"https://www.youtube.com/watch?v=CN7UbGStwl4&t=296s"}],"youtube_url":"https://youtube.com/watch?v=CN7UbGStwl4","url":"https://ccpedia.xyz/videos/CN7UbGStwl4"}