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Tokenization in the context of blockchain technology is the process of converting rights to an asset into a digital token on a blockchain. This process allows for the creation of a digital representation of a physical asset, financial instrument, or intangible assets. Tokenization enables fractional ownership, increases liquidity, and provides access to a broader range of investors. It can be applied to various assets, including real estate, art, commodities, and even personal data. Tokenized assets are easier to trade and transfer, often leading to increased efficiency and reduced transaction costs.