Tokenization involves converting real-world assets into digital tokens on blockchain, allowing assets to be fractionalized and made more liquid and accessible globally. The document discusses key concepts like tokens, blockchain, and smart contracts. It outlines the tokenization process and how blockchain and distributed ledger technology enable the creation and automated trading of tokens. Tokenization benefits include increased liquidity, lower investment barriers, and reduced transaction costs. Emerging trends like decentralized finance and NFTs present new opportunities, though security risks must be addressed for digital assets to transform finance.