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Tokenization
Tokenization is the process of converting physical or digital assets into tokens that represent ownership or other rights on a blockchain. By tokenizing assets, blockchain technology allows for fractional ownership, increased liquidity, and easier transfer of value. Tokenization can be applied to real estate, art, stocks, and even intellectual property. For instance, a real estate property could be tokenized, allowing multiple investors to own a fraction of it, enabling easier transfer and trading of shares.
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