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Tokenization is the process of converting ownership rights of real-world assets (such as property, art, stocks, or intellectual property) into digital tokens that exist on a blockchain. These tokens represent the value or ownership of the asset and can be easily traded, transferred, or divided into smaller portions.

Key Features

• Fractional Ownership: Tokenization allows assets to be divided into smaller parts, enabling multiple people to own a share of high-value assets like real estate or fine art.

• Transparency: Blockchain ensures all transactions are recorded and visible to participants.

• Security: Cryptographic methods make tokenized assets tamper-proof and secure.

• Liquidity: Traditionally illiquid assets (e.g., real estate) become easier to trade through tokenization.

Examples in Business

• Real Estate: A building can be tokenized so investors can buy small portions instead of the entire property.

• Art and Collectibles: High-value paintings can be tokenized, allowing people to own shares of the artwork.

• Stocks and Bonds: Tokenizing securities enables faster transactions and fractional trading.

Benefits

• Democratizes access to investment opportunities by lowering entry barriers.

• Reduces costs by eliminating intermediaries like brokers.

• Enables 24/7 trading on global markets.