Crypto Assets and Tokenization 

First of all, what are crypto assets? Crypto assets are digital assets that are used to prove ownership over the internet by using a record-keeping system called public ledgers. They may differ from each other in characteristics and functions. They use a study of techniques called cryptography to keep hidden to allow only the sender is able to see the contents of the subject. We may use them as a medium of exchange; a way to store values, etc.

Secondly, what is tokenization? Tokenization is a solution that divides the ownership of an asset into digital tokens. They are similar to NFTs, which are non-fungible tokens. The difference between them is if the tokens are repayable and are tied to the value of the asset. NFTs can have one owner at a time and, rather than a physical item, they own a digital file. Unlike NFTs, tokenizations refer to securing personal and sensitive data, not the presentation of digital assets. In short, tokenization is a process of securing customers’ data and creating non-sensitive data known as tokens.

Lastly, why do you tokenize crypto assets? It has a lot of advantages such as increased liquidity, as it makes easier fractional ownership, which is to get rid of the illiquidity discounts. Also, selling small parts of ownership allows owners to charge a fair price in the market. It reduces management costs, as it requires lawyers to build trust between you and the customer, tokenize crypto assets will not need such a requirement as there will be no sensitive data to create a trust. The technology behind tokenization, blockchain, will not allow owners to change the assets’ transaction history to make it seem more desirable; the transaction will become more transparent. This will allow buyers to make a more informed decision.