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Tokenization of Assets

Tokenization of assets is one of the most transformative applications of blockchain technology. Here’s a comprehensive breakdown of what it means, how it works, and why it matters: 🪙 What Is Tokenization of Assets? Tokenization is the process of converting real-world assets (like real estate, art, stocks, or commodities) into digital tokens that live on a blockchain. Each token represents a claim or share of the underlying asset. In essence: Token = digital representation of ownership or rights to an asset. 🔍 How It Works Asset Selection: A physical or financial asset is chosen (e.g., a building, artwork, or gold). Legal Structuring: Ownership is wrapped in a legal entity or smart contract framework. Token Issuance: Tokens are minted on a blockchain (often ERC-20 or other token standards). Distribution: Tokens are sold or distributed to investors or participants. Ownership & Trading: Tokens can be transferred, traded, or fractionalized on exchanges...