Token

A token can be descri­bed as a piece of data that repres­ents valuable infor­ma­tion or owner­ship of a real-world object in the form of a digi­tal token on a block­chain. Real-world objects can be anything (e.g. artwork, real estate). The process of conver­ting e.g. owner­ship rights to real-world objects into tokens is known as toke­niza­tion. A digi­tal token repres­ents a real asset. Digi­tal tokens have many advan­ta­ges that paper does not have. Papers can be diffi­cult to track and trans­fer and are usually asso­cia­ted with many legal agree­ments, which is not the case for digi­tal tokens.