Transcription
So firstly, what is tokenization? So, tokenization is creating digital tokens that represent real-world assets, um, in the real world.
So, to give an example, we're collecting wine, for example, and we want to trade wine on a global scale. So, what we do is we take the real-world asset and we create a token for the wine bottle so we can easily trade it on a digital global market. So, instead of having to deal with like the physical shipping of bottles, you can now start buying the token. You can sell the token to other people without actually having to move the wine bottle itself. So, it saves you a lot of money and cost. And it's important to uniquely describe each of the assets because each token that represents a real-world asset needs to, um, be easily identifiable. So, for example, a serial number for a wine bottle, you will note like the wine house and the production year, so all kinds of information that's useful to uniquely describe your asset.
So, why would we even tokenize real-world assets? So, first thing is accessibility. By tokenizing real-world assets, more people will get access to your underlying asset. So, for example, you have a real estate portfolio, you can tokenize it, and people all across the world can start investing in your real-world, uh, in your real estate, um, portfolio. So, it makes it more accessible because you don't have to move to another location, go anywhere. You can just trade it online. And because more people can access your real-world assets, there's also more liquidity. Uh, more people can buy highly liquid assets, so it attracts more liquidity. And this creates like a loop of creating more and more liquidity. And further is also transparency because each real-world asset is tracked on a blockchain, you gain the immutable ledger. It creates transparency. You can see the, the whole ownership and the history of your asset. So, you can see what has been done to your asset, where it has been traded, so everything is transparent.