Tokenize is defined as the process of converting physical, real-world assets into a token. A token is a digital representation of an asset that exists on the blockchain.
Let’s say you own a house worth $500K, if want to use the value of your home to raise just $50,000, you would need to go to a bank and go through the process of getting a mortgage. But if you own a painting or jewelry and want to get a loan, the process completely changes and might not be possible at your bank.
With tokenization, you can take virtually any assets and put all or part of its value on the blockchain. The value is represented by tokens and the number of tokens is arbitrary. In other words, $50,000 of your home could be placed into $1,000, $100, or $0.01 tokens.
With tokenization, you can sell any part of an asset and raise much-needed money. Because these tokens are exchanged on the blockchain, the data is publicly available, and cannot be manipulated making it virtually impossible for anyone to get scammed.