A Full Dive Into Tokenization #009

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Hello crypto friends,

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

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

Today being a new day, we shall be learning on the application of tokenization, please stay tuned as we begin.

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APPLICATION OF TOKENIZATION

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In the cryptospace, tokenization can be applied in so many areas, and today, we shall be learning more about the application of tokenization.

• FRACTIONAL OWNERSHIP:

Fractional ownership serve as a representation of a transformative intersection of blockchain technology and traditional finance.

Fractional ownership has to do with the division of intangible or tangible assets into tradeable tokens on the blockchain.

Tokenization has we have learnt is a process of convertion of right to an asset into digital token on the blockchain.

This blockchain representation of ownership operates mainly with cryptocurrencies like bitcoin and ethereum.

Explained below are ways in which fractional ownership serve as an application of tokenization.

TOKENIZATION PROCESS:

The process of fractional ownership can only be achieved through tokenization of the assets.

And this has to do with the convertion of right of an asset into a token on the blockchain.

And this process is often facilitated through smart contracts which is a self executing agreements that is written into the blockchain.

These smart contract give the requirements/condition for transfer, ownership, and income distribution of the asset.

LIQUIDITY AND ACCESSIBILITY

The liquidity of a traditionally illiquid and exclusive token can be significantly enhanced by fractional ownership. For this can make the token very liquid and accessible.

For example, a rare art pieces and a high value real estate are now accessible to more and more investors.

This token divisibility gives room for smaller contributions, thus allowing all to have access to this token.

GLOBAL MARKET PARTICIPATION

The global market for fractional ownership is being enabled by tokenization.

Participation in ownership is open to all investors around the world, without the need of passing through a complex legal and adminstrative processes.

The decentralized nature of the blockchain ensures that transaction and ownership record are kept transparent and readily accessible to all participants.

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CONCLUSION

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We have examined how fractional ownership is an application of tokenization in the cryptospace.

We see how it aids liquidity of an illiquid market and how it aids accessibility of a token.

As we proceed, we shall learn more about tokenization.