First Lets break it Down
To fractionalise something is to divide an object, product or item into segments, this allowing for the whole object like an apple to be evenly divided between more people allowing the apple to be eaten by more people. Fractionlisation is simply the act of dividing something into parts, when somehting is split into parts more people can interact and have a piece of it.
This has been a hot topic in the blockchain/ crypto space, as the recent hype of NFTs has given rise to a fractional NFT. Currently, NFTs are quite expensive and the items they represent go up and down in value quite frequently meaning purchasing an NFT is extremely difficult and the cost can act as a barrier to most people.
Fractional Property
Fictionalizing NFTs allows the product to be split into pieces allowing people to then by the fraction instead of the full NFT, rather than paying full price for full ownership. This has many applications in the physical and digital world, for example the housing market could be fractionalised allowing a property to be bought fractionally by multiple people therefore getting the rid of the need for mortgages as tenants can own parts of the house together. This enables home owners to share ownership of their house with members of family and close friends for the ability to completely own and live in their house right after purchase.
Another use case for fictionalizing property is the ability to be able to own a piece without paying the full price to receive ownership. This can be extremely useful to retail investors as multiple investors can have a stake in the home without having the liability of managing the property. This enables the fraction to act as a share in the property, and when the time comes for the property to be sold fraction holders can reap the profits earned over time if the housing market permits.
Blockchain Ticketing
Another good example for fractional NFTs would be the ticket industry, fictionalizing tickets would allow users to buy a single ticket as an NFT, this ticket now a erc721 token holds lots of bus rides, concert dates or football games within it. Each game, ride or date can be represented by a fraction of the ticket and every time the owner of the NFT rides the bus or goes to a game, a fraction is used.
For example, if I went to a football game and held a season ticket for the club I supported this would mean that I would be able to attend 380 matches of home and away games, therefore indicating that the season ticket would be split into 380 fractions.
By nature of the blockchain and NFTs the owner of the ticket would be able to send tickets fractions of ticket to other people who own a meta mask wallet, thus enabling the resale of tickets to be less of a viable option as friends and family can send fractions to other people preventing the burden of last minute ticket prices.
Tokenomics In Society
The few examples I just mentioned are demonstrated use cases for blockchain in society, the use of blockchain introduces a system of tokenomics this allowing items and assets to be represented as tokens and therefore becoming more liquid.
For example, a postage stamp is a token, just like arcade tokens represent a pound coin which is needed to partake in the game desired to be played, postage stamps hold the amount of money paid due to the weight, size and distance the package is destined to travel. Postage stamps are then a great example of tokens being used in everyday infrastructure to represent value, whether that be money or and asset.
Another great example of this would be the chips used in poker to represent the amount of cash staked within the game. Chips are tokens which allow the player to bet in confidence that the chips representing the amount of money held will not get stolen. This is because on their own, poker chips have no value, they cannot be spent, pay rent or buy food. This in turn makes them a powerful tool in a casino as they value they represented is cash held by the casino in exchange for the chips.
Tokens on their own are worthless unless backed by an asset which holds value to a person. Tickets hold value as it is the key to accessing concerts as well as enabling travelers the legal right to ride on public transport. These fractions of NFTs also can not be traded like currency, but employed as the enabler of an experience such as a football game or train ride.
Conclusion
It is now that the tokenomics of blockchain is just an upgrade of what people normally use everyday in society. Tokens are used to represent physical assets and everyday brings us closer to digitization, closer to block chain integration and mass adoption of tokenomics within the infrastructure of our society.
