The tokenization of real world assets refers to the process of converting physical assets, such as land, gold, or property rights, into digital tokens on a blockchain. Each token represents a share or ownership stake in the asset, allowing for fractional ownership and easier transfer of value. This innovation enhances liquidity, making it simpler to buy, sell, or trade assets that are traditionally illiquid or difficult to divide. By leveraging blockchain technology, tokenization increases transparency, reduces fraud risk, and streamlines transactions. It provides greater accessibility for investors, creating new opportunities in various markets.
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