tokenization beyond finance

2026.01 · 2 min

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<article> <header class="post-header"> <h1>tokenization beyond finance</h1> <p class="meta">2024.10 · 4 min</p> </header>

<div class="content"> <p> The crypto world talks about tokenization primarily as a financial mechanism. Tokenize real estate. Tokenize stocks. Tokenize art. Turn illiquid assets into tradeable tokens. </p>

<p> This is fine, but it's a limited view. Tokenization is more fundamentally about <em>creating handles for things</em>. And that's useful far beyond finance. </p>

<h2>handles and references</h2>

<p> A token is just a reference — a unique identifier that points to something else. File descriptors are tokens. URLs are tokens. Pointers are tokens. The token itself is cheap and movable; the thing it references may be heavy and stationary. </p>

<p> What blockchains add is: immutable, decentralized, globally-readable reference systems. Anyone can create a reference. Anyone can verify it. No central authority controls the namespace. </p>

<h2>tellura and physical tokens</h2>

<p> This is why <em>Tellura</em> interests me. We're not just making copper tradeable (it already is, on commodity exchanges). We're creating a <strong>handle</strong> to physical copper that can exist in software systems. </p>

<p> A copper warrant token can: </p>

<ul> <li>Be used as collateral in DeFi protocols</li> <li>Be fractionalized (own 0.1% of a copper warrant)</li> <li>Trigger automated actions when conditions are met</li> <li>Be composed with other tokens in novel ways</li> </ul>

<p> None of this requires the copper to move. The token is a handle; the handle enables composition. </p>

<h2>beyond assets</h2>

<p> What else could benefit from decentralized, verifiable handles? </p>

<ul> <li><strong>Identity claims</strong> — "I am over 18" without revealing who you are</li> <li><strong>Credentials</strong> — verifiable proof you completed something</li> <li><strong>Permissions</strong> — transferable access rights</li> <li><strong>Commitments</strong> — cryptographic promises that can be verified</li> </ul>

<p> The pattern is: take something that currently requires trust or a central authority, create a token, and suddenly it can participate in trustless, composable systems. </p>

<p> This is early. The tooling is rough. But the design space is vast. </p> </div> </article>