What is tokenization in blockchain?

Tokens serve as a representation of a specific asset or utility, particularly in the realm of blockchain technology.

Tokenization, within the blockchain context, refers to the transformation of valuable items into digital tokens that can be utilized on blockchain-based applications.

These tokens, once tokenized on the blockchain, exist in two primary forms. The first form encompasses assets that have inherent value and are tokenized for purposes such as trading, investment, or representation of ownership.

The second form comprises utility tokens, which are designed to provide access to a service or product within a blockchain ecosystem. These tokens often function as a means of payment or reward within the system.

One example of a company providing tokenization services is BTCC, a UK-based cryptocurrency exchange. BTCC offers a comprehensive range of services, including spot trading, futures contracts, and wallet management, that cater to both investors and traders.