The world of investments has always been looking out for processes to break down an asset into small constitutes but at the same time, not to compromise on the value of the assets itself. They knew that splitting an asset into smaller parts would greatly enhance the liquidity and investor participation. However, to do so without compromising on the price of the asset and using extremely dependable paperwork was a challenge that has for long plaguing the investment industry.
Arriving at a solution that converges the advantages of both the old and the new, send you the pic. Until the digital and immutable ledger technology called blockchain made its entry. The confluence of security and immutability along with its global reach and accessibility made it the panacea that the world of investments was looking for.
Now that the recordkeeping has been taken care of, it is time to address the “breaking down of the asset.” The process of breaking down a large asset into smaller representatives is called tokenization. Tokenization can have different definitions based on context. However, in the context of asset tokenization, it can either represent shares in the asset or profit shares or equity or debt. Read more at: https://www.techbooky.com/demystifying-asset-tokenization/
The world has endured a drastic change over the past twenty years. With the advent of new technologies, the way many business industries operate has completely changed and transformed digitally, into a whole new phase. So many new technologies have emerged in recent years that it is impossible to list them all. But one technology that plays a crucial role in this overall digital transformation of businesses, is Blockchain technology. It has become an essential medium that connects the physical world with the digital world. With its characteristics of trust, decentralized, distributed networks, and value, Blockchain makes it possible to connect physical objects to its digital representation.
One of the industries that benefit greatly from these characteristics of blockchain, is the asset management industry. Blockchain-based asset tokenization has the potential to help the industry with attaining tremendous growth. It provides investors with a secure platform to digitize their assets and exchange them in the most efficient and seamless manner. In this digitally evolving era, it is the right way to go, to gain maximum potential and profit for your asset business. But, if you are a beginner, you will be bewildered as to why you should tokenize your assets? What is asset tokenization and what does it offer? Let’s find out further in the article - https://kryptomoney.com/a-guide-to-asset-tokenization/