This is the world of digitalization, and it is changing fast, and in this fast world, it is common to hear words like crypto, blockchain, and bitcoin, and there is one more word which related to all these three words, and that is 'tokenization'. If any new person hear this word then it sounds very difficult to that person but in reality it is very simple and here we are going to break it down in detail.


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Tokenization is all about turning your real things into digital things. Let me give you an example. You are a painter and you have created multiple paintings. Now here you can tokenize your paintings, you can create a digital version of your paintings, and after doing this, your paintings will be tradable and transferable, which means you can buy, sell, and trade your digital paintings. Your digital version of paintings will be exist on blockchain which is secure.

## So, why is tokenization such a big deal?

Now, the thing that I will tell you here will be shocking for you. You know, tokenization is magic, and by using this  you can create digital version of almost anything including music rights, stocks, real estate and all type of arts.  Tokenization is the best thing and here there is no need of middlemen, you don't need to trap in lots of paper works but you can buy this particular thing by just few clicks and own it. 

Here’s an example:

So here, let's imagine there is a big shopping center that is worth 2 million dollars. Now, in our real world, only wealthy and rich people can own it, but what if I say I can split this building into 2000 parts and I can sell those 2000 parts to 2000 different people? Every single part is called one token, which means one token is worth 1k USD. Now, here's what happens? Multiple people participate in this investment to own one or multiple tokens of this building. This particular technology can bring lots of investment opportunities for everyone.

There is transparency in blockchain, so everyone can see where it was traded and transferred. Which means, there is no chance of manipulation and this is how this system is secure and safer for everyone.

## Types of tokens 

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In the tokenization world, there are three types available: non-fungible tokens, which are mostly called by it's short form NFT, the second is utility tokens, and security tokens.  Non-fungible tokens, which are called NFTs, can be used to tokenize your art, autographs, gaming cards, and there are many more. When it comes to utility tokens then they represent product or service tokenization, and the best example of it concert or any movie ticket.  Talking about security tokens, they are used to tokenize a piece of any type of property or any company. 

You can see all types of tokens have the same basic ideas, but when it comes to use case, then every type is different here. Tokenization is all about simplifying ownership. And tokenization is the future, however, every technology has problems, and this one too has. But tokenization is the thing that can be regulated by the authorities and made available for everyone. 

Scam can happen here because scammers are everywhere, but as I said, there is transparency so that you can see the history of your asset that you will buy. Tokenization can be the best solution, and the world's financial and technology experts, governments are working on it. Your one share means a lot for me so I am begging you to share this information take care. 

[Image source 1](https://www.mastercard.com/news/perspectives/2024/what-is-tokenization/)
[Image source 2](https://www.metawealth.co/post/advantages-of-tokenization-real-estate)

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