#Dusk.
Digitization, Encoding, and the Original Version

Common Misconceptions

Amid the rapid changes in digitization, which fundamentally transform the medium of the original from physical to digital, making it easier to access, handle, and transfer through electronic systems. However, this does not necessarily alter the essential nature of the original, nor does it add new functions to it. The digital representation of the original still operates within the constraints of traditional market infrastructures, such as central securities depositories, clearing houses, and intermediaries.

For example, the digitized paper stock certificate remains essentially the same, but it is stored and traded electronically. The shortcomings in settlement times, transaction matching, and reliance on intermediaries still exist.

The original issue represents the next step in the evolution of digital finance, marking a radical shift from both digitization and tokenization. In the original issue, the asset itself is created and exists natively on the blockchain, without the need for a corresponding underlying asset held elsewhere. Since the asset exists entirely in the digital world, there is no need to reconcile the manufactured token with its physical counterpart or anything outside the blockchain: everything happens on the blockchain.

The original issue removes the shortcomings caused by custody systems and enables disintermediation, allowing assets to be transferred, settled, and cleared entirely on the blockchain. By removing intermediaries and creating an environment where the asset is an integral part of the ledger, the original issue allows for faster transaction completion, lower costs, and a stronger commitment to regulatory requirements such as privacy and transparency. The advantages of the original issue clearly outweigh those of simple tokenization.