A Full Dive Into Tokenization #001

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Hello great minds,

It is a great opportunity to come before you all today to discuss on an issue of great importance in the cryptospace.

I trust you are doing perfectly fine and you are enjoying your activities in the community.

Have you ever wondered what tokenization is all about in the cryptospace?

Well, wander no more as I am going to explain in details what tokenization is all about, please stay tuned.

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WHAT IS TOKENIZATION

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Tokenization is a multi-facet and complex concept in the cryptospace that has become prominent in the recent years.

Tokenization can thus be explained to be the process of representing rights or real-world assets as digital token on a blockchain.

These tokens often serve as a representation of different form of value such as financial assets, tangible assets or even physical assets.

The main idea/concepts behind tokenization is the conversion of rights or ownership into digital form which can be easily transferred, traded and recorded in a transparent and secured manner

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TECHNOLOGY BEHIND TOKENIZATION

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The technology in which tokenization is built on revolves primarily on the the blockchain technology and smart contracts.

Blockchain is known to be an Immutable and decentralized digital ledger that records all transactions in a secired and transparent manner.

And smart contracts on the other hand is known to be self-executing contract that has its terms of agreement written directly into codes.

This helps in automating the transfer of ownership or the enforcement of certain conditions, thus making them crucial for tokenization.

Tokenization has to do with the issuance of security tokens, and these tokens are blockchain based taken that take adherence to security regulations.

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APPLICATION OF TOKENIZATION

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There are several applications of tokenizational across various industries, and they are:

• REAL ESTATE:

One major application of tokenization is real estate.

The tokenization of real estate properties allows for fractional ownership, enabling little investors to be a participant of the market.

This often reduces barriers to entry and increases liquidity.

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CONCLUSION

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We have examined what tokenization is and also the technology on which it is built.

We have further examined it's association with smart contract and the blockchain technology.

In our next discussion, we shall learn more about it's application.