Tokenization is the process of converting a physical asset into a digital token on a blockchain. This allows for ownership and the ability to transfer ownership with ease. Digital assets are assets that exist solely in digital form, such as artwork, music, videos, and other forms of digital content.

When these digital assets are tokenized, they become unique and verifiable on the blockchain, allowing for proof of ownership, authentication, and transferability. This is why NFTs are becoming increasingly popular as a way to tokenize and trade digital assets.