#WriteToEarn LEARN WHAT Tokenization IS...

Tokenization is primarily associated with the process of converting some form of asset into a token that can be issued, transferred, recorded, or stored in a blockchain system.

This process converts the value of any object (tangible or intangible) into a token that can be exchanged through distributed ledger technology.

•Security Token

This category of tokens consists of assets such as ownership in underlying physical assets, companies, or revenue streams, or the right to dividends or interest payments. In terms of economic meaning, tokens are similar to stocks, bonds, or derivatives.

•Utility Token

This category provides access to the goods and services that a specific project will launch in the future. Additionally, it can be used as a type of discount or premium access to the project's goods and services.

•Cryptocurrencies

The purpose of cryptocurrencies is to be items of inherent value, designed to enable sales, purchases, and other financial transactions. They aim to provide most of the same functions as traditional currencies, such as the US dollar, the euro, and others, but do not have the backing of a government or other authority.