Description: Asset tokenization is the process of converting ownership of real-world assets into digital tokens on the blockchain. This process allows tangible assets, such as real estate, artworks, or even company shares, to be represented as tokens on a blockchain network. Each token acts as a digital certificate that verifies ownership and can be securely and efficiently transferred between parties. Tokenization not only facilitates liquidity for assets that are traditionally difficult to trade but also democratizes access to investments, allowing more people to participate in markets that were previously restricted to institutional or high-net-worth investors. Additionally, tokenization can include features such as divisibility, where an asset can be split into multiple tokens, enabling investors to acquire only a portion of the asset rather than having to purchase it in its entirety. This opens up new opportunities for investment diversification and the creation of new business models in the financial sector. In the context of decentralized finance (DeFi), asset tokenization has become a key component, as it enables the creation of platforms where users can trade, lend, or use their tokenized assets as collateral for loans, all without the need for traditional intermediaries.
