Tokenization on a blockchain
Tokenization, in the context of blockchain, is the process of representing an asset digitally on a blockchain. It can be used to represent commodities, real estate, ownership of art, currency, or anything else of value.
Remember, for the rest of the chapter when we refer to tokenization, it is in the context of blockchain.
After this brief definition, let's explore how tokenization can be beneficial.
Advantages of tokenization
Tokenization provides several benefits, including faster transaction processing, flexibility, low cost, decentralization, security, and transparency. The following are some of the most important of these benefits:
- Faster transaction processing: As transactions and all relevant parties are present on the blockchain and readily available, there is no need to wait for a response from a counterparty or to wait for clearing and settlement operations. All these operations can be performed...
