Web3 is bringing fundamental changes in the way content is produced, distributed, and consumed. For the first time, consumers are buying rights, not just goods or content. Creators are interacting with consumers, gaining more control over their products, without the need for intermediaries. This shift is causing traditional middlemen to potentially lose their competitive edge as new players enter the market.
The key technology behind secure and decentralized rights markets is tokenization, a process of representing real-world or digital assets on a blockchain as tokens. This revolutionary technology is changing the way we think about asset management and value transfer. Companies and creators can now create and issue their own tokens as a means of fundraising, incentivizing users’ engagement, and providing value to the entire ecosystem. New business models and revenue streams are emerging through the tokenization of assets such as real estate, art, and intellectual property. Purchasing possibilities such as fractional ownership, are allowing more people to invest in high-value assets.
A new age of flexibility, transparency, and accessibility is taking shape for both creators and consumers, across the decentralized web.
Challenges that lie ahead for asset rights
Within the disruption of Web3, tokenization presents new challenges, especially related to asset and rights management. As a growing number of assets are tokenized, it’s becoming increasingly essential to have secure and reliable solutions for managing Web3 assets. For brands to successfully adopt Web3 technology, not only will they have to navigate a host of technology issues and business issues, but they will also have to be smart and strategic about legal issues, particularly in terms of intellectual property (IP).
Companies and rights holders need to better align rights management and intellectual property with their business strategy. This is important whether you are selling physical products in the “real world” or selling and licensing digital products and services online. The value of digital products is often determined by the rights that users have to modify, reuse, alter, or monetize them. These rights can range from extensive to limited. For example, where users have broader rights to modify and reuse assets, they are more likely to become an engaged and loyal customer base. On the other hand, restricting usage rights may increase the perceived value of assets and create a more exclusive user base.
In traditional business models, ownership and usage rights are typically managed through contractual agreements and intermediaries such as lawyers and agents. Additionally, IP such as patents, trademarks, and copyrights, are what provide legal protection and maintain a company’s creations and branding. With the borderless nature of Web3, where lines between ownership, usage, and licensing are blurred, new approaches are crucial to ensure that ownership and usage rights are adequately defined and enforced.
Token Rights Management
This is where Intertrust MarketMaker comes in. MarketMaker is powered by Token Rights Management (TRM) technology that enables the secure and comprehensive management of tokenized assets. At its core, it provides a range of tools and features that are designed to meet the needs of both asset issuers and investors.
For asset issuers, MarketMaker’s TRM technology provides a flexible set of tools that can be tailored to the specific needs of each asset. This includes the ability to customize token parameters, such as specifying limits on the token supply, setting pricing, and setting distribution parameters. TRM also adds a secure solution for managing token transfers, which enables asset issuers to enforce transfer restrictions based on regulatory requirements or other criteria.
MarketMaker and TRM gives right holders access to transparent and secure platforms for managing Web3 assets. They can view their holdings, transfer tokens, and access information about the underlying assets. Token Rights Management and MarketMaker enhance investor confidence and IP control by providing a reliable and secure platform for managing Web3 assets.
The importance of secure and reliable tokenization solutions cannot be overstated. As the Web3 ecosystem continues to evolve, it’s essential to have solutions like Market Maker’s Token Rights Management technology that provide the necessary tools and features for managing tokenized assets. Asset issuers and rights holders alike can have confidence in the security and reliability of their tokenized assets, so they can take advantage of the many benefits of Web3 tokenization.
Web3 tokenization is a game-changing technology that is enabling new forms of value creation and transfer. However, it also presents new challenges related to asset management and rights management. MarketMaker addresses these challenges, providing a secure and comprehensive way for managing tokenized assets. Discover how your organization can take a strategic approach to Web3 and asset rights management. Get in touch with our Web3 experts to learn more and schedule a demo.