Capital, Assets and Securities – Blockchain can redefine emerging markets

nRunaway commentary: The more backward areas are often more need to rely on the power of innovative technologies to achieve a breakthrough. Blockchain has an extremely important role to play in emerging markets as it enables entrepreneurs in emerging markets to more easily set up and manage companies and to get better access to capital through digital and tokenisation benefits. Emerging markets can take advantage of this new technology to create efficient new capital market systems, deriving great benefits.n
nTranslation: Inan
In 2016, less than 0.001% of the global technology venture capital investment went to startups in Africa. It is a well-known fact that entrepreneurs in emerging markets find it more difficult to obtain funding than entrepreneurs in developed markets. One of the reasons for this is that inefficient capital market systems create barriers to entrepreneurs in emerging markets, preventing them from reaching out to cautious investors.n
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“Leaping Development n
Fortunately, tokens of capital stock and token sales strategies can redefine the capital markets and change the way startups issue securities and create companies in emerging markets. Entrepreneurs and governments can move beyond the inflexible capital market system to create entirely new, flexible and accessible, monetized capital markets.n
Emerging-market entrepreneurs have little access to a flexible capital markets system, but they can now benefit from a new generation of private-sector democratization and tokens of investment-through sales of tokens.n
The monetization of capital markets in emerging markets can put young entrepreneurs and their enterprises at the center of national development and thereby promote the leapfrogging nature of a growing startup ecosystem. He pointed out that despite the tremendous potential for tokens’ sales, it still needs to be honed to find a meeting point between the existing conventional equity / debt system and a new system of innovative tokens.n
Token sales can change the capital markets in two main ways and achieve leapfrog economic growth in emerging markets.n
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Digital companyn
The digital blockchain capital markets will bring about the necessary wave of innovation around the formation and management of private companies. Setting up and managing a company in most emerging markets is expensive, slow and inefficient. In Nigeria, it may take $ 19,400 and take two months to set up a private company. In Canada, this fee is 200 Canadian dollars, and only 24 hours. After the establishment of the company, the company’s management, fees and declarations should be achieved through paper documents, which will increase management costs, time and filing requirements.n
By creating digital company building and management software that relies on blockchain technology and smart contracts, people can safely conduct, manage and track entrepreneurial activity. Digital company structure naturally means that the emergence of digital security securities, entrepreneurs can greatly reduce the barriers to entry into emerging markets. This saves resources and securely stores intellectual property in the company structure. Digital companies may change the ease of doing business in emerging markets. For example, the Republic of Georgia has recently become one of the ten most accessible countries, thanks to its recent innovations, including more efficient land ownership.n
Imagine if Nigeria had a similar company registration system – with just a click of a button, it would cost a few minutes to sign up for the company – what would happen? This is the leapfrog effect: a sudden drop in the threshold of entering the economy.n
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Tokens of securitiesn
According to a Savills global study – “Global Real Estate Market Trends 2016”, the total global market capitalization of the real estate market is about US $ 217 trillion. This equates to about 2.7 times global GDP, 36 times the global gold mining value (6 trillion) and 60% of the world’s major assets, making real estate the first choice for saving, saving and investing in countries, businesses and individuals.n
Smart contracts and distributed ledger technology enable effective linkages between assets and financial institutions. The technology allows people to create a system that splits and distributes large assets through smart contracts to multiple financial institutions, allowing users to invest a small portion of real estate through these financial institutions. This technology ensures that once the process is open it will not be tampered with.n
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A more generic systemn
The traditional trading needs a series of business processes, reasonable contract templates and a lot of paper. Therefore, this transaction is rigid and brings low-mobility capital structure to investors and entrepreneurs. Tokenisation securities represent an evolution to a flexible securities system, with the click of a button to issue shares.n
Blockchain and tokens have no boundaries and tokens of securities can form the backbone of decentralized global equity markets. This is particularly beneficial to emerging market entrepreneurs, as local angel investment and venture capital organizations are even more scarce. Tokens allow entrepreneurs to reach out to supporters from around the world to get their products financed.n
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Real financial inclusivenessn
Financial inclusiveness means more than just bank accounts and value storage. Capital markets and the ability to easily create and manage companies can reduce barriers to entry for entrepreneurs and make it easier for them to develop their own businesses. Tools such as blockchain technology and smart contracts, tokens have created the possibility of building a new capital market system in emerging market countries.n

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