# WHAT ARE TOKENIZED COMMODITIES?
Tokenized commodities are digital versions of real-world items like gold, oil, or crops recorded on a blockchain. Each token represents a part or whole of a commodity, making it easier to divide and trade. This method provides more liquidity and simplifies the buying and selling of small portions for investors, thus also offering access to markets that are usually hard to trade in.
Tokenization works in a way in which a commodity like gold, oil is divided into small portions, and instead of buying the whole commodity, which is very expensive, it is divided into smaller parts called tokens. Each token represents a small portion of the commodity.
# PROCESS OF TOKENIZATION🛣️
These are the steps involved in the process of tokenization:
- Create the tokens
- Execution of smart contracts
- Token distribution and sale
- Asset management
- Trading in secondary markets
# TYPES OF TOKENIZED COMMODITIES:
- Precious metal
- Energy resources
- Agricultural resources
- Real estate
# USE CASES OF COMMODITY TOKENIZATION 🪙 :
###
[Follow FinFarm For More✨](https:linktr.ee/finfarm)
Crypto learning made fun!
