Asset Divisibility

Definition ∞ Asset divisibility refers to the capacity of a digital asset to be broken into smaller, fractional units. This characteristic allows for transactions involving minute portions of an asset, greatly enhancing its liquidity and accessibility for various economic activities. Cryptocurrencies like Bitcoin exemplify this, being divisible into millions of satoshis. High divisibility supports microtransactions and partial ownership.
Context ∞ News reports frequently discuss asset divisibility in relation to tokenization of real-world assets, enabling fractional ownership of expensive items such as real estate or art. Debates exist around the practical limits and technical implementation of divisibility across different blockchain architectures. The future holds continued innovation in making traditionally illiquid assets more accessible through granular tokenization.