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What is tokenization?

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Within the metaverse there are a series of possibilities. You can buy and sell items and also use them. The so-called “tokens” are, more or less, virtual objects traded using cryptocurrencies. With the expansion and popularization of web 3.0, things present in the physical world can gain virtual representations and begin to be used in the metaverse. Some practical examples of tokenization are clothing, arts, audio, land and even financial assets. O Curto News explains it to you.

In virtual environments, tokens are the representation of assets that were previously only traded in the physical world. In this way, even land is tokens, and can be sold in the metaverse. Image: Johan ORDONEZ / AFP

According to Rodrigo Pimenta, MBA in Economics, Finance and Operations at FGV-SP and TEDx Speaker on “blockchain”, the moment of tokenization This is due to the apprehension about this new moment on the web. “With the great rise of this universe, the market has created several new types of tokens with different purposes. There are several options for token categories,” he says.

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See also: What are NFTs?

Tokenization draws the attention of the financial market

Tokens move the financial market (Photo by Justin TALLIS / AFP)

With an eye on new technologies that are shaking up the market, including the financial market, tokenization opens up a range of new asset options. Made possible by “blockchain”, a technology that allows security in digital capital transactions, Rodrigo Pimenta sees potential in the tool:

“We are talking about transforming any asset into a token, whether real or financial. When it comes to tokenization, It is this technology that allows the exchange of information, in which everyone involved in the network guarantees the veracity of the terms and conditions. This way, there is no questiontrust”. 

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See also: What is the metaverse?

NFTs are examples of tokenization

Os non-fungible tokens, for example, became popular after being responsible for millions of dollars in transactions around the world. Digital works of art were responsible for attracting thousands of investors, as was the case with Brazilian player Neymar, who bought an art for more than three million reais. 

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Physical version of an NFT sold on the web. NFTs moved the digital market this year. Mario Tama/Getty Images/AFP (Photo by MARIO TAMA / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)

Have you ever imagined everything you can see in the physical world being sold in the metaverse?

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