Smart Contracts and Tokenization
Blockchain is a technology that enables smart contracts and tokenization on the ledger. Smart contracts are self-enforcing and programmable contracts that run on the blockchain and execute business logic and rules based on certain conditions or triggers. Tokenization is the process of creating and exchanging digital tokens that represent real-world assets or value on the blockchain using smart contracts. Blockchain can enable smart contracts and tokenization in various domains where trust is essential for efficient and secure operations. For example, in finance, smart contracts can enable peer-to-peer lending, insurance claims, derivatives trading, and asset tokenization, among others. Tokenization can enable the creation and exchange of digital tokens that represent real-world assets or value, such as cryptocurrencies, stablecoins, utility tokens, security tokens, or non-fungible tokens (NFTs).