We are seeing a lot of signs that things are ready to explode.  By this, I am not referring to [cryptocurrency](https://inleo.io/@leoglossary/cryptocurrency) pricing or what the [markets](https://inleo.io/@leoglossary/leoglossary-market) are doing.  In fact, we are going to find out that cryptocurrency, as most people frame it, is only a small part of the technological [disruption](https://inleo.io/@leoglossary/leoglossary-disruption) that is taking place.


How do you know disruption is occurring?


One area is to look at the metrics.  When they are obsolete, or outdated, that is a sign.


For example, same store [sales](https://inleo.io/@leoglossary/leoglossary-sales) did not apply to [Amazon](https://inleo.io/@leoglossary/leoglossary-amazon-company).  How can you [judge](https://inleo.io/@leoglossary/leoglossary-judge-legal) a retailer based upon an important metric that has no applicability?  Obviously, Amazon became one of the leading retailer entities and it had no stores.


The same is true for [Netflix](https://inleo.io/@leoglossary/leoglossary-netflix).  By this [time](https://inleo.io/@leoglossary/leoglossary-time), it is safe to say that completely disrupted [entertainment](https://inleo.io/@leoglossary/leoglossary-entertainment).  Unlike Blockbuster, we could also not apply the same store metrics.  Nor was the traditional model of Nielson [ratings](https://inleo.io/@leoglossary/leoglossary-rating-insurance) of any use.


Hence, net metrics were required.


<center> https://img.inleo.io/DQmSCJgATHioAEKpKnsEiQUJxxmW2ywprE7LcC51BQjUfa4/image.png 
Image generated by Ideogram </center>



# Tokenization Going Mainstream


So far, for cryptocurrency, the metric appears to be [Bitcoin](https://inleo.io/@leoglossary/leoglossary-bitcoin).  Most are asking what that [currency](https://inleo.io/@leoglossary/leoglossary-currency) is doing.  It grabs the headlines on [media](https://inleo.io/@leoglossary/leoglossary-media) (as well as social media).


When the [price](https://inleo.io/@leoglossary/leoglossary-price) is making a big move, up or down, people are talking about it.


Is this the best thing to focus upon?  Isn't that akin to basing the [stock market](https://inleo.io/@leoglossary/leoglossary-stock-market) by talking about Nvidia?


Simply looking at the biggest is not going to give a complete picture.  This is something that [Coinbase](https://inleo.io/@leoglossary/leoglossary-coinbase) is looking to change.


The firm released COIN50 (or Coinbase 50), a crypto [index fund](https://inleo.io/@leoglossary/leoglossary-index-fund).


Here is what it entails:


>The [investment](https://inleo.io/@leoglossary/leoglossary-investment) vehicle pools together 50 different cryptocurrencies. The prices of Bitcoin, [Ethereum](https://inleo.io/@leoglossary/leoglossary-ethereum-blockchain), and [Solana](https://inleo.io/@leoglossary/leoglossary-solana-cryptocurrency) comprise more than 80% of the [fund](https://inleo.io/@leoglossary/leoglossary-fund). The COIN50 also includes [XRP](https://inleo.io/@leoglossary/leoglossary-xrp-cryptocurrency), Dogecoin, and 45 other [coins](https://inleo.io/@leoglossary/leoglossary-coins).


On the surface, this seems like just another way to invest in cryptocurrency.  While that is true, there is something else at [work](https://inleo.io/@leoglossary/leoglossary-work).


>While Coinbase will receive some [revenue](https://inleo.io/@leoglossary/leoglossary-revenue) from the [purchase](https://inleo.io/@leoglossary/purchase) and sale of the COIN50, the [index](https://inleo.io/@leoglossary/leoglossary-index) fund is also a “media play,” Greg Tusar, head of institutional product at Coinbase, told DL News.


>In other words, he says he hopes crypto market observers refer to the fund in the same way media outlets referred to Polymarket odds for the US presidential [election](https://inleo.io/@leoglossary/leoglossary-election).






The goal here is to have the talking heads on stations such as CNBC talking about the COIN50 instead of Bitcoin.  This is the metric that Coinbase hopes will be the [default](https://inleo.io/@leoglossary/leoglossary-default) as a barometer of the moves in the overall cryptocurrency market.


>Coinbase’s new fund will be tradeable as a [futures contract](https://inleo.io/@leoglossary/leoglossary-futures-contract) for [institutional investors](https://inleo.io/@leoglossary/leoglossary-institutional-investor) on Coinbase’s international [exchange](https://inleo.io/@leoglossary/leoglossary-exchange). It will also be available for [retail investors](https://inleo.io/@leoglossary/leoglossary-retail-investor) on Coinbase Advanced, which lets users perform more complicated [trades](https://inleo.io/@leoglossary/leoglossary-trade).


<center> [Source](https://www.dlnews.com/articles/markets/coinbase-launches-crypto-index-fund-coin50-in-media-play/) </center>


There are other crypto index funds out there.  The difference is Coinbase is a publicly traded [company](https://inleo.io/@leoglossary/leoglossary-company-business) (i.e. part of Wall Street) and it has a large [customer](https://inleo.io/@leoglossary/leoglossary-customer) base.  For the United States, it is the leading crypto exchange.


## Visa Going Tokenized


When people hear tokenization, the common conclusion is to think about cryptocurrency such as Bitcoin or Ethereum.  The reality [tokens](https://inleo.io/@leoglossary/leoglossary-token) are more diverse than that.  In fact, we could say that is just a minor piece to the entire spectrum.


Tokenization is, at its core, a [computer](https://inleo.io/@leoglossary/leoglossary-computer) attribute.  Hence, when looking at [transactions](https://inleo.io/@leoglossary/leoglossary-transaction), it is crucial to understand the characteristics.




>Tokenized transactions are considered more secure and are less known to The general public. Visa reports that tokenized operations have a [fraud](https://inleo.io/@leoglossary/leoglossary-fraud) rate five times lower than non-tokenized transactions. This makes tokenization a critical pillar of [security](https://inleo.io/@leoglossary/leoglossary-security) for entities processing large volumes of transactions, such as [banks](https://inleo.io/@leoglossary/leoglossary-bank) and retailers.


This has nothing to do with the price go up crowd.  It is, however, applicable to trillions of transactions, something that dwarfs the cryptocurrency market.


Visa is one of the largest [payment](https://inleo.io/@leoglossary/leoglossary-payment) processors globally.  This is something they are very interested in.  Actually, the company is already immersed in it.


>Visa has recently achieved the significant milestone of issuing ten billion tokens globally, marking a major step in the adoption of [digital payment](https://inleo.io/@leoglossary/leoglossary-digital-payment) [security](https://inleo.io/@leoglossary/leoglossary-security-cybersecurity) measures. In Brazil, the payment giant has issued 400 million tokens, where 63% of the platform’s online transactions are nOowtokenized. This includes credentials for [credit](https://inleo.io/@leoglossary/leoglossary-credit), [debit](https://inleo.io/@leoglossary/leoglossary-debit), and prepaid cards, significantly enhancing the security and innovation of [digital](https://inleo.io/@leoglossary/leoglossary-digital) financial transactions.


In other words, Visa is reworking their entire network.


>“These results demonstrate how Visa tokens help issuers and [merchants](https://inleo.io/@leoglossary/leoglossary-merchant) manage large payment [flows](https://inleo.io/@leoglossary/leoglossary-flow) in a secure, reliable manner, and in [compliance](https://inleo.io/@leoglossary/leoglossary-compliance) with accountability guidelines. The increase in the adoption of [technology](https://inleo.io/@leoglossary/leoglossary-technology) improves the consumer experience and enhances their security when shopping online,” explains Leandro Garcia, [executive](https://inleo.io/@leoglossary/leoglossary-executive) [director](https://inleo.io/@leoglossary/leoglossary-director-film) of Digital Payment Solutions at Visa.


<center>[Source](https://www.crypto-news-flash.com/visa-tokenization-in-brazil-enhancing-security-for-online-transactions/) </center>


Visa is not alone in this.  JPMorgan started testing the JPM token a number of [years](https://inleo.io/@leoglossary/leoglossary-year) ago.  This was designed to facilitate transactions between a number of banks that were tied to the [network](https://inleo.io/@leoglossary/leoglossary-network) it set up.


When it comes to these institutions, speed and fraud are two major concerns.  By increasing the [settlement](https://inleo.io/@leoglossary/leoglossary-settlement-financial) times, friction is reduced within the financial system.  At the same time, since tokenization is more secure, fraud is reduced.  According to the linked [article](https://inleo.io/@leoglossary/leoglossary-article), Visa saw $650 million fraud [losses](https://inleo.io/@leoglossary/leoglossary-loss-financial) prevented.


## Decentralized Opportunity


Obviously, what is being discussed here are centralized entities.  There is little debate about the intentions of banks as financial [intermediaries](https://inleo.io/@leoglossary/leoglossary-intermediaries-financial) in the financial system.


While the tenets are cryptocurrency are accurate, the fact that [DeFi](https://inleo.io/@leoglossary/leoglossary-decentralized-finance-defi) has not been built out to the degree that is required provided opportunity to the centralized system.


It is interesting to view how decentralized networks became the test case.  Banks and other [financial institutions](https://inleo.io/@leoglossary/leoglossary-financial-institution) were slow to adopt the technology.  The petri dish was DeFi and the transactions that were handled on different [networks](https://inleo.io/@leoglossary/leoglossary-network-broadcast).


As these institutions saw the success (and threat?), they decided to get involved.


We are presently confronted with the fact that things are slipping away.  Fortunately, the online [world](https://inleo.io/@leoglossary/leoglossary-world) is growing at a rapid pace, with [AI](https://inleo.io/@leoglossary/leoglossary-artificial-intelligence) starting to take over.  This means that crypto is going to be a central component as we move forward.


The key will be the establishment of networks with digital platforms built on top.  Here is where the shift can occur.  Users shift to what interests them.  As more tools become available, the [underlying](https://inleo.io/@leoglossary/leoglossary-underlying) layer will be cryptocurrency.


Of course, we are rapidly moving to a point where the established financial system will operate on top of tokenization.  


Visa is already proving that.


By the middle of next year, this will not be a [story](https://inleo.io/@leoglossary/leoglossary-story).  We will likely see most institutions following in Visa's footsteps.  After all, it is not news when a company sets up a [website](https://inleo.io/@leoglossary/leoglossary-website).  It was a different story 30 years ago when only a few companies had that.


The decentralized world can step up.  Buildout continues to be where focus is required.  People are still living on centralized system.  As technology gets more powerful, this is only handing more control over the major [corporations](https://inleo.io/@leoglossary/leoglossary-corporation) behind the platforms we use. 


Either way, tokenization is going mainstream.


___


<center> [What Is Hive](https://inleo.io/@leoglossary/leoglossary-what-is-hive) </center>




Posted Using [InLeo Alpha](https://inleo.io/@taskmaster4450/tokenization-is-going-mainstream-dse)