What is Location Swap?
Let's find out Location Swap meaning, definition in crypto, what is Location Swap, and all other detailed facts.
Location swapping happens when holders swap two identical asset-backed tokens that are in different locations (without altering their other parameters) to change the physical location from which they can redeem these tokens. Asset-backed tokens are digital assets that are a claim to some real physical things whose properties (current storage location, qualities, and dimensions of a commodity) are described in tokens.
The swap doesn’t change the physical thing, it only changes the holder of the claim. In a global market, a location swap makes sense since it can reduce shipping costs and minimize product shortages. How? By using the products that are already at the target location but their existing owner doesn't need them at the specific moment.