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For the longest time ever, Blockchain-based assets such as Bitcoin, Ethereum, and XRP, among other altcoins, have been the unique purview of cryptocurrency exchanges and crypto-savvy traders. However, this is no longer the case with the advent of non-fungible tokens (NFTs).
Now, anyone can tokenize any traditional asset on a Blockchain, including stocks, ETFs, and commodities. NFTs make it possible to track a wide range of unique assets on-demand with live price quotes, not to mention the ability to trade those assets.
One of the biggest advantages of NFTs is that they enable fractionalization of assets, thereby opening up investment opportunities that were previously out of reach for many people. For example, with NFTs, it is now possible to invest in a piece of art or a collectible without shelling out the entire amount upfront. Fractional ownership also makes it possible to trade these assets in smaller increments which were not possible with traditional methods.
Sologenic is one of the companies pioneering the use of NFTs to tokenize traditional assets. The company uses the XRP Ledger – which can process 1,500 transactions per second with a finality period of just 4 seconds – to mint NFTs that represent ownership of stocks, ETFs, and commodities. This makes it possible for anyone to trade these assets on cryptocurrency exchanges the same way they would trade any other type of cryptocurrency.
What Is Sologenic?
Sologenic is the first-of-its-kind decentralized exchange and NFT marketplace on the XRP ledger. This is a community-focused project founded on the belief that cryptocurrencies are the key to financial inclusion and freedom for over 7.5 Billion people globally who are currently underserved or excluded from the traditional financial system.
Already, the Sologenic platform has received overwhelming traction with a whooping 385,000 users and $300 million in monthly trading volume. The project has also received financing from the XRPL Grants program, which seeks to enable others to leverage XRP’s open-source technology to create the internet of value.
At its core, Sologenic is built with several components to its ecosystem that include a fiat ramp that enables users to buy tokens using fiat payment methods like Mastercard and Visa, a launchpad called the SOLO Launch-Pad, which provides startups a unique opportunity to raise funds and the Sologenic Original Series which is geared towards supporting NFT artists.
Sologenic’s Solution to the NFT Marketplace
At this point, talks about NFTs have become commonplace given the meteoric rise of NFTs sales and their popularity in mainstream media. NFTs have been used to represent everything from digital art and tweets to in-game assets and even physical property.
However, while the possibilities of NFT applicability are endless, the reality is that the existing NFT marketplaces are built on slow and congested Blockchain networks with high gas fees. Existing Blockchain networks cannot handle the number of transactions required to make NFT transactions seamless and ubiquitous.
Suppose NFTs are used to represent traditional assets such as stocks and commodities. In that case, a Blockchain network with high transaction throughput and low transaction fees is required, and that is exactly what the XRP Ledger offers.
The XRP Ledger can handle 1,500 transactions per second which easily outpaces other Blockchain networks such as Ethereum (15 transactions per second) and Bitcoin (7 transactions per second). In addition, the XRP Ledger has a finality period of just 4 seconds which is significantly shorter than Ethereum’s (60-90 seconds) and Bitcoin’s (10 minutes).
The combination of high transaction throughput and low transaction fees makes the XRP Ledger the perfect platform for traditional tokenizing assets with NFTs.
Therefore, Sologenic works by leveraging the XRP Ledger, thus allowing anyone to buy and trade NFT-based stocks, ETFs, and commodities with minimal friction. Sologenic makes it possible for NFT enthusiasts to mint, collect and create NFTs with ease without worrying about skyrocketing gas fees.
With a capacity to tokenize different asset classes such as stocks, ETFs, shares, and even real estate on the XRP Ledger network, Sologenic has the potential to become the go-to platform for investing in traditional markets through the Blockchain.
Conclusion
The NFT market has a lot of hype over the past few months, yet it is only at its nascent stage. As time goes by, demand for NFTs will continue to grow beyond collectibles and digital art, given their ability to represent a wide array of assets in a decentralized manner.
However, for NFTs to become truly ubiquitous, a Blockchain network with high transaction throughput and low transaction fees is required, and that is exactly what the XRP Ledger offers. Sologenic has leveraged the XRP Ledger’s capabilities to facilitate high transaction throughput and low transaction fees, making it a fitting platform for using NFTs to represent non-Blockchain assets.
Thanks to Sologenic, anyone can easily buy and trade NFT-based stocks, ETFs, and commodities. The platform features additional components such as a launchpad and a custodial service designed to reduce risk in the investment process.