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Tokenization Standards

Definition

Tokenization standards are established protocols and guidelines that govern the creation, issuance, and management of digital tokens on a blockchain. These standards ensure consistency, compatibility, and security across different tokenized assets and platforms. Adherence to recognized standards, such as ERC-20 for fungible tokens or ERC-721 for non-fungible tokens on Ethereum, facilitates interoperability and simplifies integration into broader financial systems. They are foundational for the reliable functioning of tokenized economies.