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Here are some definitions to help you better understand the explanation
Tokenization is the process of exchanging sensitive data for non-sensitive data called “tokens” that can be used in a database or internal system without bringing it into scope.
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NFTs can be used to represent real-world items like artwork and real-estate.
“Tokenizing” these real-world tangible assets allows them to be bought, sold, and traded more efficiently while reducing the probability of fraud.
NFTs can also be used to represent individuals’ identities, property rights, and more.