IOT : TOKENISATION
Quantum computing and advanced AI present potential future security challenges , potentially compromising tokenisation ’ s effectiveness in securing sensitive data .
Network development and future applications Internet of Things ( IoT ) integration with tokenisation enables real-time supply chain condition monitoring . The number of tokenised IoT transactions is expected to increase from US $ 3.8bn in 2022 to US $ 19bn in 2027 .
Integration of IoT devices with tokenisation enables collection of environmental condition data throughout supply chains , with smart contracts automating traditionally bureaucratic processes .
Supply chain management firms implement tokenisation through distributed ledger technology , with SAP ’ s GreenToken enabling tracking of combined product materials from source to retail .
Consumer goods manufacturer Unilever has adopted this technology for regulatory compliance and supply chain transparency .
The European Commission ’ s Digital Product Passport initiative , planned for implementation by 2026 , aims to integrate tokenisation with sustainability tracking . Products will feature QR codes or RFID tags linking to blockchain-stored environmental impact data , enhancing transparency in supply chains and promoting sustainability practices .
The insurance sector demonstrates regulatory compliance applications , with 60 % of insurance companies investing in blockchain technology .
Tokenised insurance policies enable automated policy management through smart contracts , reducing administrative overhead . This facilitates introduction of innovative products such as shortterm policies for contingent workers that automatically expire when no longer needed .
It ’ s clear that tokenisation technology is transforming both physical and digital commerce .
It ’ s already widely used in mobile wallets , wearables , stored card details and integrated payments across marketplaces and gig economy platforms .
Through Mastercard ’ s Digital First API , this technology is powering new commercial experiences including in-car payments , electric vehicle charging and Internet of Things applications .
The company ’ s Payment Passkey Service extends tokenisation into identity verification , while Mastercard explores new applications across consent management , data handling and asset tracking .
As the token economy becomes established , Mastercard serves as a principal facilitator of value exchange .
Ken Moore , Chief Innovation Officer at Mastercard , concludes : “ Tokenisation is well-established in payments , but the list of potential use cases in other fields is breathtaking .
“ Wherever data needs to be exchanged with confidence , tokenisation can play a role . It has huge implications for commerce .” fintechmagazine . com 77