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Land tokenization refers to the process of transforming physical land ownership rights into digital assets managed on a blockchain. These assets, known as real-world assets (RWAs), represent either full or partial ownership of a property. This enables flexible ownership models—ranging from sole ownership to fractional ownership, where multiple individuals can hold shares in the same piece of land. By digitizing land rights, tokenization makes it easier to transfer, divide, and trade ownership through blockchain-based platforms.

Real-World Assets (RWAs) are tangible assets that exist in the physical world, such as real estate, commodities, bonds, and machinery. In the context of blockchain, RWAs are represented by digital tokens that mirror the value and ownership of these traditional assets—including currencies, equities, and fixed-income instruments. Tokenizing RWAs is considered one of the most significant growth opportunities within the blockchain space, bridging the gap between traditional finance and decentralized technologies.