Tokenization of Assets – How Blockchain is rewriting the asset management
tokenisation of assest


Blockchain is often thought of being just an immutable ledger but the true powers of this new piece of technology go beyond just a secure database. Blockchain based Tokenization of Assets is changing the way assets are managed and traded.

What does an immutable ledger do?

It acts as a single source of truth for any data stored in it, usually for transactions. Therefore, a Blockchain network having an immutable database becomes a credible and auditable system. Credible, because the data stored on the ledger cannot be modified. Auditable, because the transaction data can be traced back to its origin. Moreover, the consensus mechanism of Blockchain that governs the addition of data into the ledger eradicates the need for a third party.

Tokenization of Assets and Blockchain

The underlying immutable ledger of the Blockchain network has allowed numerous use cases to become feasible.

For instance, let’s imagine the transactional data stored inside a Blockchain network’s ledger reflects the ownership of an asset. In this case, the asset is being digitized as it exists in the network’s ledger. If the asset goes through any activity in real-life such as transfer of ownership, it will reflect on the chain. This is the classic example of how tokenization is used for the digitalization of an asset.

This, on a broader level, is the concept of Blockchain-based tokenization.

Tokenization is implemented by issuing a specific number of tokens on the Blockchain. The combined value of these tokens is equal to the value of an asset in real life.

It is important to consider that the concept of tokenization is not new. It has just become more feasible with the advent of Blockchain. Blockchain allows the storage and transfer of the tokens over the network in a frictionless manner.

What is a token?

Tokens can be thought of as entries in a digital