How are you everyone?Today I will discuss with you about tokenization of assets. I am young and my experience is very little so please forgive me if there are any mistake.

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Asset tokenization” is a term for using smart contracts and blockchain technology to represent ownership or rights to an asset as a tradable, on-chain token. Although it usually refers to the tokenization of a monetary or fungible asset, such as a company's shares or an amount of gold, asset tokenization could conceivably refer to the tokenization of anything possessing monetary value. As such, asset tokenization is the most promising use case for blockchain, with the upper bound of the asset tokenization market size potentially encompassing almost all human economic activity, a dollar figure that could be worth over one hundred trillion annually.
As anyone familiar with the Oracle problem knows, any instance where a Web3 application needs to communicate with the outside world can present security risks and other complexities, and resource tokenization—a process that by its very nature relies on world information that's typically off-chain— No exception. Secure oracles are key to reaching the full potential of asset tokenization, as various key market processes such as minting, trading, management and more require reliable information about underlying assets.

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What is asset tokenization?
Digital asset tokenization is a process where ownership rights to an asset are represented as digital tokens and stored on a blockchain. In such cases, tokens can act as digital certificates of ownership that can represent any object of value, including physical, digital, fungible and non-fungible assets. Because they are stored on a blockchain, owners can maintain custody over their assets (if owners keep them in their own secure crypto wallets).
If the long-term promise of this use case is impressive, progress toward adoption has already been made today. Major enterprises, such as Boston Consulting Group and ADDX, BlackRock, Deloitte, BNY Mellon and EY, have studied asset tokenization and concluded that it has the potential to disrupt multiple industries, including the global securities industry. Additionally, Microsoft and Vanguard have announced or gone live with industrial asset and securities tokenizing projects, respectively. By these metrics, asset tokenization is already the most popular blockchain use case currently achieving real-world enterprise adoption.
To understand how asset tokenization works and why it's important, let's revisit the basics of Web3 technology: Smart contracts are cryptographically secured digital contracts made of computer code and stored in a highly secure type of database known as a blockchain. To issue tokens, a developer writes a smart contract on the blockchain that maps positive balances to a series of wallet or smart contract addresses, along with functions that enable users to add and subtract those balances under control of those addresses.
Today's discussion ends here. I hope you find it interesting and able to understand. Share your thoughts on today's topic. Wishes and blessings to all. Everyone stay well stay healthy stay with Steemit.