Tokenisation is the process of converting an asset or the ownership of an asset into a unique unit called a token. Tokens are commonly referred to when discussing blockchain. where they are used to indicate ownership of a valuable asset.
Tokens can indicate ownership of tangible assets, such as works of art, or they can indicate ownership of intangible assets, such as company shares or voting rights. Tokenisation can take place for any item that is considered valuable.
The tokens can then be used to transfer ownership of the asset, make payments and perform other financial tasks. An example of tokenisation would be real estate.
