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Energy Tokenization

Definition

Energy tokenization involves converting units of energy, such as kilowatt-hours, into digital tokens on a blockchain. This process enables the fractional ownership, peer-to-peer trading, and transparent accounting of energy resources. It can apply to various energy types, including renewable energy credits or direct power output, facilitating more efficient and decentralized energy markets. Tokenization allows for automated settlement and verification, potentially democratizing access to energy investments and consumption.