What is a Digital Token?

The process of converting rights of real-life assets on a blockchain is known as tokenization. The conversion of assets into tokens is done by companies. The introduction of digital tokens has evoked a great sense of interest in financial intermediaries and technology giants.

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Attainable rewards

How Digital Tokens Work?

A digital token is an electronic ticket received in replacement for money or a check. This token can be used to claim any asset available for an equivalent price. The holder of it can use for buying any transferrable asset like a house, a car, a mobile phone or any commodity with a physical existence. Digital tokens have a wide range of usage in the volatile times these, assets such as property licenses can also be presented in the form of digital tokens.

Commodity exchange is a common business in the world today, therefore the use of the digital token is quite valid now. For instance, if a person wants to trade assets like diamonds or gold, digital tokens can play as the apt solution for this person to conduct the trade. The seller and trader, instead of using trade paper can rely on these tokens for the representation of the assets. Use of token makes the transfer and tracking of the assets an easy process.


Moreover, these tokens can further be used to pass the tokenized commodity to other people. Since these tokens are all present on the blockchain, each transaction that takes places during the transference of the tokens is secured on the blockchain in its full transparency. The process saves a huge time for the user and eliminates the need for any middleman or central authority to regulate or verify the transparency of the transaction.

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