Abstract:

This paper is analyzing the use of Blockchain technology to issue and trade digital tokens representing real-world assets. From the beginning of trading (in ancient history) to the modern stock exchange, technology made a powerful impact on how this industry works. Until very recently (the 2010s), the technology only affected the trading itself and how assets are priced and traded, but now, digital assets are reinventing the commodities themselves (like Bitcoin). The paper will present in-depth how asset tokenization is done, as well as what are the advantages of using digital assets in accomplishing settlements between buyers and sellers on a free market.