A COMPREHENSIVE
GUIDE ON TOKENIZATION
101blockchains.com
What is
Tokenization?
Tokenization is a process where users
can transform their assets into digital
tokens. If you have $100,000 worth of
real estate, you can turn it into
100,000 digital tokens or any amount
of token you prefer.
Tokenization can help to represent
fractional ownership, where each
party gets their share of digital tokens
representing an asset.
NFT
NFT
$
$
$
$
$
$
$
$
$
$
$
$
NFT
NFT NFT
NFT
Working of
Tokenization Intangibles
Non-fungible Assets
Fungible Assets
PATENT L
AW
Intangibles The intangible assets don't have
physical representations rather exist
solely based on the legal perspective.
Typically, various copyrights and
patents are under this type of asset.
Intangible assets are easier to convert
to digital tokens as you don't need
physical storage. But jurisdictional
issues may occur during the transfer of
ownership.
Fungible Assets Fungible assets can be replaced by
similar assets. As you can divide these
assets into smaller units, these are
easier to tokenize on the blockchain
network.
Furthermore, it's easier to represent
fungible assets as a single type of
token can represent a similar type of
assets. For example, a token can
represent a specific unit of gold.
Non-fungible
Assets Non-fungible assets are a bit harder to
tokenize than fungible ones. As these
can't be divided into smaller similar
units, the whole asset needs to be
represented by a single token.
Typically, creative elements such as
digital art, songs, games fall into this
category.
Why Is Tokenization So Popular?
Operational Efficiency
Assets Divisibility
Transparency
Data Integrity
Tokenization does not require any third-party involvement; thus,
it maximizes operational efficiency by cutting out the
middleman.
By doing so, the transaction costs are heavily reduced, which is
beneficial for any kind of participating individuals or company.
Automation and reducing the manual labor of day-to-day
activities can make the process more efficient. It saves time and
settles any transaction faster than conventional means.
Operational Efficiency
Tokenization introduces fractional ownership. This allows
multiple persons to own a single asset without needing any
complicated paperwork.
It also ensures that the investment barriers are lower, thus
encouraging more people to invest in certain assets.
Also, by digitizing the whole process, people from anywhere can
own an asset, which increases the overall liquidity.
Assets Divisibility
Everything on the blockchain is fully transparent to the
participating parties. But that doesn't mean that everyone can
see personal information.
Public blockchain platforms allow users to see the ledger, and
thus, it improves the trust in the tokenization process.
More so, it helps to easily identify and verify ownership of an
asset on the platform.
Transparency
As the tokenization process happens on the blockchain
platform, it also offers data integrity.
The immutable nature of blockchain makes sure that no one
can alter any data on the ledger and corrupt the network.
This acts as the primary security of the platform and is
applicable to all participating parties of the network.
Data Integrity
Types of Tokenization in
Payment Processing
Vault Tokenization
Vaultless Tokenization
Tokenization Types in NLP
Word Tokenization
Character Tokenization
Subword Tokenization
Tokenization Types in
Blockchain Platform Tokenization
Utility Tokenization
Governance Tokenization
Non-fungible Tokens
Use Cases of
Tokenization
Precious Metals
Logistics
Real Estate Assets
Non-fungible Assets
Investing in gold is one of the popular and major investments
around the globe. But the process can become very
complicated in terms of moving or even storing the gold.
The market of precious metals has liquidity issues.
Tokenization can easily solve the problem by introducing
tokens representing these metals.
Companies can offer vault facilities for users to safely store
their assets and even offer fractional ownership of these assets.
Tokenization of Precious Metals
Tokenization can help the real estate sector by offering an
option of fractional ownership. Here, people can invest in land
or property in groups and own just a portion of that property.
It can also ensure the digitization process of the official
contract between the buyer and the seller.
It can digitize securities and other financial instruments and
get rid of all the manual complexities of owning a property.
Tokenization for Real Estate Assets
The logistics industry relies on the Bill of Lading heavily as
proof of the ownership of goods. Unfortunately, discrepancies
in the Bill of Lading or misplacement can result in delays in
delivery.
Tokenization can help this sector ensure that every delivery is
on time and without any issues by offering the documents as a
form of token.
Also, the payments between the importer and exporter can
also happen on the network where both parties can automate
the process by using smart contracts.
Tokenization in Logistics
Tokenizing non-fungible assets helps in creating a new form of
a marketplace where each of the assets represents a single
token.
Anyone willing to buy a non-fungible asset will get the asset in
the form of a single token. The token pricing typically varies
from asset to asset.
Also, as it uses blockchain, it can show viable proof of the NFT
being fully authentic so that buyers can safely bid on the
token.
Tokenization of Non-fungible Assets
Learn More About Tokenization
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https://academy.101blockchains.com/c
ourses/nft-fundamentals
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The presentation is not intended to provide any investment advice and should not be
taken as such. Claims made in this webinar do not constitute investment advice and
should not be taken as such. Do your own research!
While the information contained in this document and presentation has been
obtained from sources believed to be reliable, 101 Blockchains disclaims all
warranties as to the completeness or accuracy.
Although 101 Blockchains research and training may address business, financial,
investment and legal issues, 101 Blockchains does not provide any business, financial,
legal or investment advice and this training should not be construed or used as such.
101 Blockchains shall not be responsible for any loss sustained by any person who
relies on this presentation.
Disclaimer
Thank You
© 2021 101 Blockchains. All rights reserved. This document may not be distributed, transmitted or reproduced in any form or by any means without
101 Blockchains’ prior written permission. While the information contained in this document has been obtained from sources believed to be reliable,
101 Blockchains disclaims all warranties as to the completeness or accuracy. Although 101 Blockchains research may address business, financial,
investment and legal issues, 101 Blockchains does not provide any business, financial, legal or investment advice and this document should not be
construed or used as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this publication.

A Comprehensive Guide on Tokenization - 101Blockchains

  • 1.
    A COMPREHENSIVE GUIDE ONTOKENIZATION 101blockchains.com
  • 2.
    What is Tokenization? Tokenization isa process where users can transform their assets into digital tokens. If you have $100,000 worth of real estate, you can turn it into 100,000 digital tokens or any amount of token you prefer. Tokenization can help to represent fractional ownership, where each party gets their share of digital tokens representing an asset.
  • 3.
    NFT NFT $ $ $ $ $ $ $ $ $ $ $ $ NFT NFT NFT NFT Working of TokenizationIntangibles Non-fungible Assets Fungible Assets
  • 4.
    PATENT L AW Intangibles Theintangible assets don't have physical representations rather exist solely based on the legal perspective. Typically, various copyrights and patents are under this type of asset. Intangible assets are easier to convert to digital tokens as you don't need physical storage. But jurisdictional issues may occur during the transfer of ownership.
  • 5.
    Fungible Assets Fungibleassets can be replaced by similar assets. As you can divide these assets into smaller units, these are easier to tokenize on the blockchain network. Furthermore, it's easier to represent fungible assets as a single type of token can represent a similar type of assets. For example, a token can represent a specific unit of gold.
  • 6.
    Non-fungible Assets Non-fungible assetsare a bit harder to tokenize than fungible ones. As these can't be divided into smaller similar units, the whole asset needs to be represented by a single token. Typically, creative elements such as digital art, songs, games fall into this category.
  • 7.
    Why Is TokenizationSo Popular? Operational Efficiency Assets Divisibility Transparency Data Integrity
  • 8.
    Tokenization does notrequire any third-party involvement; thus, it maximizes operational efficiency by cutting out the middleman. By doing so, the transaction costs are heavily reduced, which is beneficial for any kind of participating individuals or company. Automation and reducing the manual labor of day-to-day activities can make the process more efficient. It saves time and settles any transaction faster than conventional means. Operational Efficiency
  • 9.
    Tokenization introduces fractionalownership. This allows multiple persons to own a single asset without needing any complicated paperwork. It also ensures that the investment barriers are lower, thus encouraging more people to invest in certain assets. Also, by digitizing the whole process, people from anywhere can own an asset, which increases the overall liquidity. Assets Divisibility
  • 10.
    Everything on theblockchain is fully transparent to the participating parties. But that doesn't mean that everyone can see personal information. Public blockchain platforms allow users to see the ledger, and thus, it improves the trust in the tokenization process. More so, it helps to easily identify and verify ownership of an asset on the platform. Transparency
  • 11.
    As the tokenizationprocess happens on the blockchain platform, it also offers data integrity. The immutable nature of blockchain makes sure that no one can alter any data on the ledger and corrupt the network. This acts as the primary security of the platform and is applicable to all participating parties of the network. Data Integrity
  • 12.
    Types of Tokenizationin Payment Processing Vault Tokenization Vaultless Tokenization
  • 13.
    Tokenization Types inNLP Word Tokenization Character Tokenization Subword Tokenization
  • 14.
    Tokenization Types in BlockchainPlatform Tokenization Utility Tokenization Governance Tokenization Non-fungible Tokens
  • 15.
    Use Cases of Tokenization PreciousMetals Logistics Real Estate Assets Non-fungible Assets
  • 16.
    Investing in goldis one of the popular and major investments around the globe. But the process can become very complicated in terms of moving or even storing the gold. The market of precious metals has liquidity issues. Tokenization can easily solve the problem by introducing tokens representing these metals. Companies can offer vault facilities for users to safely store their assets and even offer fractional ownership of these assets. Tokenization of Precious Metals
  • 17.
    Tokenization can helpthe real estate sector by offering an option of fractional ownership. Here, people can invest in land or property in groups and own just a portion of that property. It can also ensure the digitization process of the official contract between the buyer and the seller. It can digitize securities and other financial instruments and get rid of all the manual complexities of owning a property. Tokenization for Real Estate Assets
  • 18.
    The logistics industryrelies on the Bill of Lading heavily as proof of the ownership of goods. Unfortunately, discrepancies in the Bill of Lading or misplacement can result in delays in delivery. Tokenization can help this sector ensure that every delivery is on time and without any issues by offering the documents as a form of token. Also, the payments between the importer and exporter can also happen on the network where both parties can automate the process by using smart contracts. Tokenization in Logistics
  • 19.
    Tokenizing non-fungible assetshelps in creating a new form of a marketplace where each of the assets represents a single token. Anyone willing to buy a non-fungible asset will get the asset in the form of a single token. The token pricing typically varies from asset to asset. Also, as it uses blockchain, it can show viable proof of the NFT being fully authentic so that buyers can safely bid on the token. Tokenization of Non-fungible Assets
  • 20.
    Learn More AboutTokenization NFT Fundamentals Course https://academy.101blockchains.com/c ourses/nft-fundamentals Central Bank Digital Currency (CBDC) Masterclass https://academy.101blockchains.com/courses/c entral-bank-digital-currency Stablecoin Fundamentals Masterclass https://academy.101blockchains.com/courses/st ablecoin-masterclass
  • 21.
    101 Blockchains Certifications CertifiedEnterprise Blockchain Professional Certified Enterprise Blockchain Architect Certified Blockchain Security Expert https://academy.101blockchains.com/cour ses/certified-enterprise-blockchain- architect https://academy.101blockchains.com/cours es/certified-blockchain-security-expert https://academy.101blockchains.com/ courses/blockchain-expert- certification
  • 22.
    Why You MustGo With 101 Blockchains Certification Courses? High-Quality Research Information First-class Training Content Interactive Exercises Flexible Learning Using Modular Approach Access to Bonus Training Materials Various Training Strategies for Faster Learning Tangible Proof of Course Completion Weekly Hands-on Assignments Professional Instructors Premium Support
  • 23.
    Free Resources Enterprise BlockchainsFundamentals - Free Course Blockchain Webinars Blockchain Conferences Access Free Resources Now! Blockchain Glossary Blockchain Flash Cards Blockchain Presentations Blockchain Infographics
  • 24.
    Trusted By 30,000+Professionals! Read real stories on Trustpilot and G2Crowd. 500+ reviews
  • 25.
    The presentation isnot intended to provide any investment advice and should not be taken as such. Claims made in this webinar do not constitute investment advice and should not be taken as such. Do your own research! While the information contained in this document and presentation has been obtained from sources believed to be reliable, 101 Blockchains disclaims all warranties as to the completeness or accuracy. Although 101 Blockchains research and training may address business, financial, investment and legal issues, 101 Blockchains does not provide any business, financial, legal or investment advice and this training should not be construed or used as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this presentation. Disclaimer
  • 26.
    Thank You © 2021101 Blockchains. All rights reserved. This document may not be distributed, transmitted or reproduced in any form or by any means without 101 Blockchains’ prior written permission. While the information contained in this document has been obtained from sources believed to be reliable, 101 Blockchains disclaims all warranties as to the completeness or accuracy. Although 101 Blockchains research may address business, financial, investment and legal issues, 101 Blockchains does not provide any business, financial, legal or investment advice and this document should not be construed or used as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this publication.