📎Benefits of Tokenization

Any Benefits in Tokenization?

Yes, there are 3 main benefits realizable from Tokenization:

1. More Liquidity: Tokenization generally gives room for abundant liquidity, hence the assets can be made available to more and more users.

2. Faster, Cheaper Transactions: Because blockchain system is decentralized, it bypasses the third party middlemen like banks, hence its cheaper footprints. This effectively reduces the transaction costs and processing time of each exchange, allowing for a more streamlined, cost-efficient method of transferring value. Additionally, since these tokens exist on the blockchain, they can be traded and sold 24/7 around the globe.

3. Transparency and Provability: Because these tokens live on the blockchain, users can easily trace their provenance and transaction history in a way that is cryptographically verifiable. Transactions can be automatically recorded on the blockchain, and the immutability and transparency enabled by blockchain technology helps guarantee the authenticity of each token’s stated history. These qualities enable crypto tokens to achieve a level of reliability that most other digital assets cannot match.

Blockchain tokens enable both information and value to be transferred, stored, and verified in a way that is both efficient and secure.