Tokenization of an asset means creating a digital entry on a blockchain ledger which is tied or tethered to the asset being tokenized.
The token is thus minted. Once a token is minted, it can be sold to any willing buyer on the same platform where it was minted or elsewhere.
Non-Fungible Tokens (NFTs) are being touted as the next big thing in the digital world. The enthusiasts proclaim that NFTs are the future of digital property, and tokenization of assets has the potential to disrupt how digital (and in future, the real world) assets are acquired, owned, and transferred.
Please refer to the below document to read the full article by Amar Gupta, published in Legal Era.
Amar is amongst the founding members of JSA’s Disputes Practice. He has in past served as the Practice Chair and a member of the Firm’s Executive Committee.