Popular Use Cases of Tokenization

Published by

Aug 12, 2021

What is Tokenization?


Tokenization is a process of converting a piece of data or value into a random string of characters so it cannot be misused even if it is breached. These string of encrypted characters are called as tokens. These tokens are used by the token holder to represent a digital or physical item instead of exhibiting its original vulnerable data.


Below are some of the major use cases of Tokenization.


Art and Music


The concept of tokens are now popular among digital content creators and artists. The process of tokenizing art work or music can help the original creator to get a hold of effective proof of their ownership over the item and it also helps them to showcase their work online rather than going after a long term traditional process. Along with art and music, gaming assets can also be tokenized using the NFT tokens thus has lead to a huge demand of NFT token development services among several digital content creators and artists.




In crowdfunding, ICO is a perfect example of implementing Tokenization . This ICO- Initial Coin Offering is a popular method through which the cryptocurrency startups raise funds. The main advantage of ICOs is that there will be a direct interaction between the companies and the investors and no middlemen will be involved in the process of capital-raising.


Asset Tokenization:


In recent times, people have begun to tokenize their assets in order to make a sale easier. For asset tokenization, the best example is Real Estate tokenization. Real Estate Tokenization is a process of creating tokens on a blockchain and assigning it to a user to represent the ownership that the user have over a real estate property that already exists. This process replaces the paper documents involved in the transaction of a property and lets the buyers as well as the sellers to use digital tokens for transactions. Thus speeds up the whole transaction involved in the real estate industry.


Digital Currency & Payment:


These digital tokens are also in online payments in the form of digital currency.Crypto token is considered as another form of currency that is available in a digital format. Making payments using these tokens has several benefits like no limitation, no intermediaries and instant transaction etc.


Other than these above mentioned use cases of tokenization, there are several other popular business cases like Digital collectibles, Logistics and many more. If you are planning to get involved with tokenization, then it is better to get assistance from a professional token development company like Security Tokenizer, so that you can find the right token development service that suits your industry and enhance your business.

Articles authored by Brian Richards