The transformation of physical assets into digital or “Tokenization” is just beginning By Cointelegraph


The transformation of physical assets into digital ones or “Tokenization” is just beginning

The transformation of physical assets into digital ones is the great technological trend that is coming in the most different sectors, to the point of transforming entire areas and creating their own economic dynamics.

This expression has gained strength in recent years to name a direct consequence of the digital transformation that we are currently experiencing. Now, if most of the processes that govern different aspects of our lives are migrating to the virtual environment, it was clear that financial assets would follow the same path. The question was how to do it in a safe, transparent and, of course, efficient way without putting the goods and assets of people and companies at risk.

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The answer lies in the popularization of blockchain technology, which has been harnessed by cryptocurrencies in the last decade. After initial resistance, it became clear to all that there was no better resource for digitizing real assets. In addition to protecting the information by dividing it into small encrypted blocks, making it almost impossible to change it, it offers the possibility of a smart contract, which serves as a document to determine the operating rules of that asset.

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