Within the crypto-sphere, tokenization refers to the process of converting real-world assets, such as property, stocks, or even art, into digital tokens that can be traded on a blockchain. These tokens represent ownership and or value in the underlying asset and can be bought and sold just like traditional securities.
Tokenization allows for fractional ownership, which means that investors can buy and sell small portions of an asset rather than having to purchase the entire thing. This can make investing in traditionally illiquid assets more accessible and affordable for a wider range of people.
Furthermore, tokenization allows for greater transparency and efficiency in transactions, as ownership and transfer of the tokens can be recorded on a blockchain and in an undisputed ledger. This can reduce the need for intermediaries such as brokers, banks, or lawyers, which can potentially lower transaction costs and speed up the process.
Overall, tokenization has the potential to revolutionize the way people can invest and trade assets, making it more accessible, transparent, and efficient.