Tokenization on a blockchain
Tokenization, in the context of blockchain, is the process of representing an asset digitally on a blockchain. It can be used to represent commodities, real estate, ownership of art, currency, or anything else of value.
Remember, for the rest of the chapter when we refer to tokenization, it is in the context of blockchain.
After this brief definition, let's explore how tokenization can be beneficial.
Advantages of tokenization
Tokenization provides several benefits, including faster transaction processing, flexibility, low cost, decentralization, security, and transparency. The following are some of the most important of these benefits: