How Does Asset Tokenization Work?
Asset tokenization is a process of converting the ownership of a real-world ****et into digital tokens on the blockchain. The token grabs the place of ****et information, where it is securely stored in the server named token vault. Token Vault is the only place where the original information can be linked to its corresponding token thus protecting the sensitive information. Creating tokenized ****ets includes defining the token type, choosing the blockchain to issue the token, a third party to verify, and more. In Asset Tokenization Platform Development, ****ets can also be divided and stored in blockchain ensuring security, transparency, and immutability which helps the investors to buy a part of the ****es without buying them outright. This process can democratize access to an ****et, reduce transaction costs, and increase the liquidity in the market.
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