Tokenization
Beginner
In the context of blockchain and cryptocurrencies, tokenization refers to the process of converting real-world assets, such as real estate, art, or financial instruments, into digital tokens on a blockchain. These digital tokens represent ownership or rights to the underlying assets and can be traded on blockchain platforms, such as decentralized and centralized exchanges.
Tokenization in blockchain involves creating a unique digital token that corresponds to a specific asset. The token is then recorded on a blockchain, providing a transparent and immutable ledger of ownership and transactions. This process offers several advantages, including increased liquidity, fractional ownership, and easier transferability of assets.
Here are some key points related to tokenization in the context of blockchain: