Asset tokenization is the process of transforming physical assets into digital tokens that can be stored, transferred, and sold on a blockchain. Examples of such physical assets include real estate, works of art, and commodities.
Assets’ ownership and value can be represented and exchanged digitally by tokenizing them, which increases liquidity, allows for fractional ownership, and may have positive effects on transparency and efficiency.
Tokenization makes it possible for people to invest in typically illiquid assets and to create new types of decentralized marketplaces and asset management.
A governance token is a cryptocurrency token that entitles holders to vote in a decentralized network or platform's decision-making process. Changes to the network's protocols, features, and policies can be proposed and voted on by token holders.
Non-fungible tokens are a type of cryptocurrency token that represent unique, indivisible digital assets. Unlike cryptocurrencies like Bitcoin (BTC) or Ether (ETH), NFTs are not interchangeable on a one-to-one basis.