Description: Financialization refers to the process of converting assets into financial instruments within various economic ecosystems, not limited to any specific platform. This phenomenon involves the creation of financial products that allow users to obtain liquidity, diversify their investments, and manage risks more efficiently. In broader blockchain contexts, financialization manifests through the tokenization of assets, where physical or digital goods are represented as tokens on a network. This not only facilitates access to previously inaccessible markets but also promotes innovation in the creation of new financial products. Financialization enables developers and entrepreneurs to create decentralized applications (dApps) that offer financial services such as lending, exchanges, and insurance, all without the need for traditional intermediaries. This approach democratizes access to financial services, allowing a larger number of people to participate in the digital economic ecosystem. Furthermore, the speed and efficiency of various blockchain networks contribute to making these transactions more accessible and less costly, further enhancing the financialization process in these environments.
