Asset tokenization
In short, tokens can be regarded as any object (physical or digital) that represents fundamental value. Tokens can be fungible or irreplaceable.
The chips in the game are tokens, which represent the value mentioned on the chips. Regardless of the history of the tokens, their value remains the same, so they are interchangeable. Your vehicle can be a token, it is irreplaceable, because its value will change with age, mileage, conditions, etc.
In today's world of digital governance, cryptocurrencies are slowly taking over transactions, and crypto tokens have become a new method of marking assets. From CryptoKitties to game skins, digital trading tokens have become an attractive investment for many people.
But what is the tokenization of assets? What are its advantages? Should you tokenize your assets? In this article, we will introduce the world of token/digital currency trading and how you should start implementing it!
What is the tokenization of assets?
Quite simply, when you put assets (including legal currency, cryptocurrency or any other assets) into tokens, you have tokenized the assets.
If you exchange cash for chips in the game, it means that the assets have been tokenized.
In the cryptocurrency world, if you buy 3 CryptoKitties from Ethereum coins, it means that you have tokenized your assets.
Tokenization of assets is the process of converting your financial assets into tokens, whether encrypted or physical. However, the tokenization function of assets in the encryption field is different from the function of asset tokenization in the physical field.
Encrypted tokens are essentially blockchain assets. You cannot touch or perceive them, but in the blockchain network, there is a block that will mark you as having a specific encrypted digital currency.
Now, it is also possible to tokenize traditional assets such as real estate and securities on multiple DEFI platforms through the blockchain network. You can choose to liquidate these tokens, exchange (exchange and acquire) them for other tokens on the network, or retain ownership as long as you wish.
However, why should you convert your assets into crypto tokens?
Advantages of asset tokenization
The tokenization of assets has many advantages. Because DEFI eliminates intermediaries, the transaction processing efficiency and fees will be much lower than traditional asset transactions.
Moreover, the blockchain network ensures complete transparency. The delay or stop of transmission can almost be eliminated, which is a faster and simpler process. The system provides higher safety and reliability.
In addition, given the current public interest in the field and the availability of liquidity providers, the investment in encrypted tokens is expected to bring huge returns. The possibility of market manipulation is greatly reduced.
Trading tokens
If you are interested in token trading, then this is a good time! There are multiple DEFI (Distributed Finance) platforms today that can tokenize your assets in many other services.
A good example is KingSwap, which is a liquid mining pool platform that allows you to easily convert fiat currencies into cryptocurrencies and use tokens to buy and sell tokens on the network.
The platform also has its own token collection NFT, which rewards liquidity providers, miners and early users!
in conclusion
Moreover, to start the tokenization of assets, all the knowledge you need to know is here. If you find this information useful and fascinating, we hope to know in the comments!