In recent years, investing has seen change in both what to invest in and how to invest? It would be wise to say that tokenization could be one thing where the shift developed promisingly. While everyone talks about crypto and blockchain, tokenization comes out as their most practical application. It is silently reshaping the idea of investment calling traffic from everyday people.
But what exactly is tokenization and how it is leaving its marks for regular people? Say you have ownership of an asset, say some kind of art, stock or any real estate and you cover it into a digital token on a blockchain. This is called tokenization. The best part about this is that these tokens can be then traded like shares on the stock exchange. Let it understand properly. Suppose you want to invest in real estate but do not have enough funds. However, if the tokens of this property are available on the block chain, then you may buy a fraction of it. By doing so, this token will let you a share of future profits.
Next thing to understand is how investing in tokenization can be a game changer. First things first, it offers low entry barriers. We all know that investing in assets like real estate or fine arts etc requires large sums of money and not all can really invest in it. However, by buying its tokens one gets allowed fractional ownership. Meaning a small amount even under USD 100 one gets exposure to high value assets. 
The part of this investment is that it can be done from anywhere. All you need is a digital wallet and an internet connection. Tokenized assets bring the global financial market to the world. This lets everyone become a part of it. Also, these assets can be traded 24/7 on blockchain based exchanges. This caters the needs of people living in different time zones.
One more thing that makes tokenization more attractive is its capability of faster transactions and lower fees. Blockchain technology does not require any bank or broker. They work on peer to peer transactions which make investments easy for small investors. However, this doesn’t mean that there can be a breach of security. Every tokenized investment is recorded on the blockchain. This provides clear transaction history which reduces the risk of fraud.
So what are the challenges? Well one still has to comply with the country’s regulatory policies. Also, as easy purchasing sounds, it could be difficult selling tokens quickly. This happens due to low liquidity on smaller platforms. Lastly, tokenization still needs more adoption. People are still more or less unaware of investment in blockchains and tokens.
Irrespective of given odds, tokenization can emerge as a turning point in the coming future. People are already investing in it. With better terms and regulations and more acceptance, we can assume that tokenization will bring and benefit regular investors.
