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Wednesday, Nov 6, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Crypto/Blockchain

Anduro brings tokenization to the Bitcoin blockchain

Recent developments in smart contracts on Bitcoin blockchain make this possible

Anduro brings tokenization to the Bitcoin blockchain
Image from Basiczto via Shutterstock.

Anduro, a blockchain venture backed by blockchain mining giant Marathon Digital Holdings (NASDAQ: MARA), has launched a tokenization platform on the Bitcoin blockchain.

The platform Avant announced on Monday a plan a project to tokenize whiskey barrels.

Tokenization involves converting physical assets into digital tokens on a blockchain, with each token representing a fraction of ownership. This makes it easier to trade and diversify investments while ensuring transparency and traceability through blockchain technology. Anduro’s platform provides a decentralized, secure way to facilitate this process.

Typically, this process doesn’t involve Bitcoin’s blockchain but usually something like Ethereum or Solana, which are more custom built for such things. However, the introduction of smart contracts and the facilitation of token minting, have begun to change this.

Avant aims to drive similar progress with real-world assets (RWAs), but with a distinct Bitcoin twist, according to Anduro’s product lead, Jullian Duran.

Whiskey barrels are particularly appealing due to their consistent appreciation in value over time. As whiskey matures, it gains character, and the market value of the barrels often rises. Tokenizing these barrels offers investors a way to participate in the whiskey market without the complexities of direct ownership. Therefore, issues including storage or insurance are no longer necessary.

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New revenue options required as bitcoin block reward diminishes

Marathon Digital Holdings is a major player in the Bitcoin mining industry.

By supporting Anduro, Marathon is expanding blockchain applications beyond cryptocurrency, demonstrating the versatility of the technology in new sectors.

This partnership displays the potential for blockchain to revolutionize traditional industries by offering more accessible investment opportunities.

Marathon’s ongoing support of Anduro reflects a growing trend among mining companies to explore new sources of transaction fee revenue as the block reward halves every four years.

Bitcoin miners solve mathematical problems to add new blocks to the network and earn newly minted BTC in return. Every four years, the reward is halved, most recently in April this year when it dropped to 3.125 BTC.

Although this halving strengthens Bitcoin’s position as a store of value, it creates a challenge for miners, whose income is effectively reduced by 50 per cent with each halving.

Furthermore, whiskey barrels are just the beginning for Anduro’s platform. It is expected to broaden its tokenization offerings to include other assets such as real estate and luxury goods. By enabling fractional ownership, the platform aims to make high-value investments more accessible to a wider range of investors.

“Specifically in the case of Marathon being a publicly listed miner whose stock price is highly correlated to the bitcoin price, we need to find new ways to drive up that price and drive forward adoption,” Duran said.

“A world in which more people use bitcoin is a world in which there are more transaction fees and a world where the entire ecosystem gets lifted up.”

 

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