Tokenization is the process of converting sensitive data, such as credit card numbers or personal information, into a unique identifier called a token. This token can be used in place of the original data for transactions or storage, ensuring that the sensitive information remains secure and is not exposed during processing. In the context of blockchain and cryptocurrencies, tokenization refers to representing real-world assets, like real estate or art, as digital tokens on a distributed ledger. This allows for easier transfer, ownership tracking, and fractional ownership, making it simpler for individuals to invest in high-value assets.