There are several ways to represent assets on the blockchain. The most popular is converting physical assets using the ERC-20 token standard. This standard defines a set of rules for issuing new tokens and allowing them to be traded on an exchange. These rules include details on transferring of ownership, the value to is transferred, what is transferred, and other custom categories if created. In general, there is a legal piece of contract stating names of party, subject of transfer, value at it is transferred at and ownership transfer. Similarly in decentralized blockchain, a token holds this information. As a blockchain is immutable and hack-proof, there is no question of authenticity and thus makes it legal when used in applications such as decentralized real estate trading. So if you hold a token that holds physical real estate ownership, you basically are holding that property’s deed. Tokenization Tokenization is the process of converting an off-chain asset onto a blockchain and represent it on “on-chain”. Depending on the blockchain and region of physical assets, it goes through various legal verification processes and authentication of past information takes place before putting it on the chain and thus finally completing the tokenization process.