Tokenization
Tokenization
Tokenization is the digital process of converting a physical or digital asset into digital tokens on a blockchain, the asset permanently acquires a digital signature or ID on the blockchain.
NFTs, or Non-Fungible Tokens, represent unique, one of a kind assets. Each NFT has a unique value and they are not 1-1 interchangeable, this is also known as Non-Fungibility.
This solution is specifically targeted at the following example usecases:
- Physical assets: Tokenizing artwork and other exclusive products
- Real estate: Fractional ownership made possible
- Ticketing: Access to events through specific NFTs
- Tokenization of certificates and other valuable documents
Benefits are :
- Provenance and Ownership: Tokenization allows for the secure and transparent tracking of ownership and provenance of assets, such as digital art, collectibles, or real estate. This establishes clear ownership rights and helps prevent fraud.
- Fractional Ownership: Tokenization enables the division of high-value assets into smaller fractions, making them more accessible to a broader range of investors. This increases liquidity and democratizes access to investment opportunities.
- Cost Reduction: By utilizing blockchain technology, tokenization reduces the need for intermediaries, such as banks and clearinghouses, which reduces transaction fees and increases efficiency.
- Global Market Access: Tokenized assets can be bought and sold on decentralized marketplaces, making it easier for buyers and sellers from around the world to transact, regardless of geographic boundaries.
- Programmability: Tokenized assets can be embedded with smart contracts, which allow for the automation of processes, such as royalty payments or the execution of investment terms, reducing the potential for human error and increasing efficiency.
- Enhanced Liquidity: Tokenization can help make illiquid assets more liquid by making them easily tradable on digital marketplaces, improving price discovery and unlocking trapped value.