Asset Identification: The first step is identifying and valuing the asset to be tokenized. This can range from physical assets like real estate to digital assets like intellectual property.
Token Creation: Digital tokens representing ownership shares in the asset are created on a blockchain platform. Each token corresponds to a fraction of the asset.
Smart Contracts: Smart contracts are programmed to automate the execution of transactions. They enforce the terms of agreements and ensure that all parties adhere to the predefined rules.
Token Distribution: Tokens are distributed to investors, who can buy, sell, or trade them on digital marketplaces. This enables continuous and efficient trading of the asset.
Ongoing Management: The platform manages the lifecycle of the tokenized asset, including compliance with regulatory requirements and distribution of any dividends or returns.
