Tokenizing Infrastructure: Unlocking the Potential of Blockchain-Enabled Finance

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• Tokenization of infrastructure can be used to finance projects in both the private and public sectors.
• By issuing digital tokens backed by an infrastructure asset, each token can represent the economic benefits of the asset.
• Businesses are exploring this field, and the potential is huge.

Exclusive interview with Dr. Yifeng Tian, tokenization scientist

On January 31, 2023 at 5:49 pm, had a one-on-one interview with Dr. Yifeng Tian, a researcher who introduced and conducted a systematic analysis of blockchain-enabled finance in infrastructure investment. During the interview, Dr. Tian shared his insights on how blockchain technology can be leveraged to promote infrastructure investment and achieve sustainable goals.

Dr. Yifeng Tian began the interview by discussing the feasibility of blockchain-enabled tokenization in infrastructure finance. He explained that, based on the research conducted by his team, it is indeed feasible to tokenize infrastructure assets such as real estate, commodities, and security. He provided an example of a wind farm valued at $5 million, which can be tokenized by issuing 5 million digital tokens. Each token would represent 1/5,000,000 economic benefits of the asset and be priced at $1. This process of tokenizing infrastructure assets is no different from the tokenization of other asset models.

When asked about the mechanics of tokenizing infrastructure on the blockchain, Dr. Tian stated that the process is theoretically applicable to any type of infrastructure, regardless of whether the project is in the energy, transportation, telecommunication, or healthcare sector. The only requirement is that token investors must be adequately incentivized with economic returns to compensate for the risks.

This is a field that is being explored by businesses, and Dr. Tian believes that the potential is significant. Even though adoption is still in its early stages, the direction is clear, and the future looks promising.

Overall, the interview with Dr. Yifeng Tian provided a valuable insight into the potential of tokenizing infrastructure assets on the blockchain. With more businesses venturing into this field, it is likely that tokenization of infrastructure assets will become a more commonplace practice in the near future.