Tokenization is a method that converts rights to an asset into a digital token. Suppose there is a $200,000 apartment. Tokenization can transform this apartment into 200,000 tokens (the number is totally arbitrary, we could have issued 2 million tokens). Thus, each token represents a 0.0005% share of the underlying asset. Finally, we issue the token on some sort of a platform supporting smart contracts, for example on Ethereum, so that the tokens can be freely bought and sold on different exchanges. When you buy one token, you actually buy 0.0005% of the ownership in the asset. Buy 100,000 tokens and you own 50% of the assets.
Thus, STP(Standard Tokenization Protocol) take an asset, tokenizs it and creates its digital representation that lives on Blockchain. Blockchain guarantees that the ownership information is immutable. STP Provides a new smart contract protocol framework for token offerings of all types. By issuing a permissioned ERC-20 token (STP) on the Ethereum blockchain, STP ensures that compliance considerations are met at the token level through STP token’s adherence to the Compliance Validator restrictions. So , we can say that Standard Tokenization Protocol’s STP-Standard is an open-source decentralized standard that defines how ownership of tokenized assets are generated, issued, sent, and received while complying with all necessary regulations.
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Website: http://stp.network/
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Twitter: https://twitter.com/STP_Networks