• Dr. Yifeng Tian is the first researcher to introduce and conduct a systematic analysis of blockchain-enabled finance in infrastructure investment.
• The interview covers whether it is feasible for blockchain-enabled tokenization to be applied in infrastructure finance, how tokenization of infrastructure on blockchain works, and why Dr. Yifeng Tian’s team was motivated to seize the opportunity.
• The research suggests that most types of public or private sector infrastructure can benefit from tokenization, provided investors are offered sufficient economic returns as incentives to compensate for the risks.
Interview with Dr. Yifeng Tian on Blockchain Tokenization in Infrastructure Finance
Feasibility of Applying Tokenization
Dr. Yifeng Tian’s research suggests that most types of public or private sector infrastructure can benefit from tokenization, provided investors are offered sufficient economic returns as incentives to compensate for the risks. As an example, he proposed that a wind farm valued at $5m could be represented by 5 million digital tokens each priced at $1 and backed by this asset.
How Does Tokenization Work?
Revenue generating projects will pay dividends or interest from their cash flows while non-revenue generating projects may use availability payments from governments to ensure financial availability. For public infrastructure financing, government bonds can also be tokenized while private infrastructures may have corporate equity, corporate bonds, project equity, project bonds and infrastructure funds all subject to tokenization processes.
Motivations Behind Introducing Tokenization
Dr. Yifeng Tian was inspired by real estate tokenization when his team began researching ways in which blockchain technology could be leveraged to promote sustainable goals through improved infrastructure investment opportunities. The team saw this as an amazing opportunity and decided to seize it so they could continue building solutions that would help bridge the gap between traditional finance systems and emerging technologies such as blockchain technology and cryptocurrency markets.
Conclusion
Through his research and subsequent interviews with crypto news outlets like ours, Dr Yifeng Tian has proved that there is immense potential for benefiting both individuals and businesses who want access to improved financing solutions for their investments in infrastructure assets by leveraging blockchain technology through tokenizing them on distributed ledgers like Ethereum or other similar networks .