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  • Writer's pictureBusiness Anthropology

What is the Tokenization of Assets?

Tokenization is a process that involves transforming the ownership rights of an asset into a digital token/cryptocurrency that can be stored, traded and managed on a blockchain network. The process is facilitated through smart contracts, which are self-executing agreements that use code to enforce the terms of a transaction between buyers and sellers.

Tokenization offers several benefits, including increased liquidity and accessibility to previously illiquid assets such as real estate, fine art, and intellectual property. The ability to purchase fractional ownership in assets eliminates the need for complex and time-consuming processes involved in traditional ownership transfer. This, in turn, allows for easier and faster transactions. Tokenization also offers transparency and security, as all transactions are recorded on a distributed ledger, which reduces the need for intermediaries, such as brokers or banks. Tokenization can also potentially reduce costs and create efficiencies by eliminating intermediaries, while providing a secure and transparent way of maintaining records of ownership and other relevant information. In summary, #tokenization is a powerful innovation that has the potential to revolutionize traditional ownership structures by enabling the digitization of assets and the creation of new forms of value exchange. In the very near future we will witness a "tokenization" of the Global Stock Exchanges.

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