Tokenization is the process of turning a meaningful piece of data, such as an account number, into a random string of characters, called a token, that has no meaningful value if breached. Tokens serve as reference to the original data but cannot be used to guess those values.
One component of tokenization are non-fungible tokens (NFTs), which are not interchangeable. They have different values. Each NFT, each non-fungible token, has a different value.
The idea is that NFTs are digital tokens that represent real-world assets, anything from stocks to works of art and even baseball cards.
So, why bother with NFTs when you can buy the physical items? Analyst Marija Matic explains:
Crypto is trying to show to the traditional markets that it’s much easier to trade these items, these assets, as tokens. It’s also about fractional ownership, as well. For example, stocks can be traded when they’re tokenized, then you can trade a fraction of a stock. It’s much easier to acquire, to trade and to use.
In this week’s Weiss Crypto Sunday Special, Marija delves into:
- The various uses for NFTs
- NFPs — the tokenization of digital assets
- The risks and rewards for NFT investors
And more!
I highly recommend you watch the full interview now.
Best,
Beth Canova,
Managing Editor
