What Are the Technological Prerequisites for Tokenizing Real-World Assets?
The primary prerequisites are a secure, immutable blockchain platform and a robust smart contract system. The smart contract must be capable of representing the ownership rights of the physical asset digitally.
A reliable oracle system is also essential to feed real-time, verified data about the physical asset (e.g. its value or status) onto the blockchain. Finally, secure digital wallets are needed for token storage and transfer.
Glossar
Physical Asset
Tokenization ⎊ The process of creating a digital representation of a tangible asset, enabling its use as collateral or an underlying for crypto derivatives.
Secure Digital Wallets
Custody ⎊ Secure digital wallets provide the essential function of custody, managing the private cryptographic keys that control access to a user's cryptocurrency holdings on the blockchain.