Vertalo Chooses Tezos for Security Token
This week, the Austin, Texas-based transfer agent, Vertalo shocked investors after announcing it would transfer its tokens over to the Tezos blockchain. The decision to convert tokens over to the Tezos blockchain comes after Vertalo executives examined the benefits of such a transfer carefully after it announced that its VToken smart contract securities would be produced on the Tezos blockchain, by default, for all new issuers.
Despite the change, Vertalo will still support their ERC-20 tokens moving forward according to company documents. The news comes after the release of a new protocol that allows the firm to convert ERC-20 tokens to Tezos-formatted smart contracts. In this way, the transition is seamless. As such, Vertalo encouraging customers to make the switch over as well.
Speaking on the decision, Dave Hendricks, CEO of Vertalo explained the motivation behind his company's decision. He explained that through the use of the Tezos blockchain, his firm can simplify the entire tokenization process. The added functionality allows Vertalo to better “cover 99 percent of the security token and smart contract landscape” moving forward.
Tezos Provides Added Features
Hendricks also touched on the advanced capabilities that made Tezos a better option for his firm's strategy. Specifically, he listed Tezos' advanced smart contract programming capabilities. These smart contracts are ideal for tokenizing equity and debt, both markets in which Vetalo hopes to play a major role in developing.
Additionally, Hendricks spoke on some of the other important aspects that motivated the change. For one, Tezos is a proof-of-stake (PoS) blockchain. As such, Tezos' blockchain utilizes far less energy to secure than traditional Proof-of-work systems such as Bitcoin or Ethereum. Importantly, Ethereum intends to transfer over to a PoS consensus protocol this year.
Also, Tezos allows developers to program smart contracts using multiple programming languages. This gives developers access to a variety of new capabilities. Importantly, this flexibility provides a more stable network of participants and expands the firm's current collateralization opportunities.
Lastly, Hendricks spoke on Tezos transactions per second rate. Tezos currently can handle around 40 transactions per second but the platform features a design that can be scaled up considerably to suit future demands. In comparison, Ethereum can handle only about 15 transactions per second. In the past, this has led to congestion on the Ethereum blockchain.
Vertalo Seeks to Tokenize Real Estate
Importantly, one of the key focuses of the Vertalo platform is the tokenization of real estate. Notably, a Tezos managed real estate fund could operate in a manner similar to traditional real estate funds without the need to change the current practice of simultaneously paying out a staking-based dividend next to an asset-secured dividend. This strategy is ideal when discussing the tokenization of large real estate funds that attract mainstream investment firms.
The Vertalo platform handles a number of important tasks within the industry, The firm issues digital securities and manages data for the broker-dealers, issuers, custodians, and exchanges. On top of these tasks, Vertalo also manages cap tables for startups, tokenize shares, and even hosts Security Token Offerings via the company's REGD V-token.
Vertalo and Tezos – A Strong Team
The decision to transfer over to the Tezos blockchain makes sense when you consider the added functionality the change brings to Vertalo. Tezos continues to expand its market positioning in 2020. Consequently, you should expect to hear more from both of these firms in the coming weeks.