everyone's talking about tokenisation. but what is tokenisation and how does it work? by popular demand, here's everything you need to know about one of the hottest topics in blockchain right now. in short, tokenisation is the process of converting ownership rights of physical or digital assets into digital tokens on a distributed ledger. this allows traditionally illiquid assets like real estate to be bought, sold and traded online, often in fractional pieces. how it works: 1/ an asset is selected to be tokenised an asset (such as a commercial building) is selected, appraised, and legally structured for digital representation (ie tokenisation). 2/ the asset is represented on the blockchain developers write the code to tokenise the asset on the blockchain. these smart contracts establish the rules of the token, including ownership rights, dividend distributions, and how the token can be transferred etc. 3/ tokens are minted digital tokens are generated on the blockchain. these tokens represent specific shares or rights to the underlying asset. 4/ distribution and storage investors can freely buy and sell the tokens. because the tokens are fractional, people can easily own a small percentage of a high-value asset (like real estate). 5/ trading and settlement because tokens are traded on the blockchain, all trades are recorded permanently and transparently, without the need for a traditional bank or clearinghouse.