The tokenization of commodities and resources consists of representing these physical assets as digital tokens on a blockchain.
In few steps
A company could tokenize a certain amount of gold, allowing investors to buy tokens that represent a fraction of that gold. This would give them exposure to the value of gold without the need to physically store the gold themselves.
An oil producer could tokenize a portion of its future production. Investors who buy these tokens would then be entitled to a share of that oil production once it is extracted.
A vineyard could tokenize a rare vintage. Each token represents a fraction of the wine. Token holders could receive a share of the profits from the sale of the wine or exchange their tokens for bottles.
In some areas where water is a precious and limited resource, it could be tokenized. Token holders would then be entitled to a specific amount of water.
A company that mines rare metals could tokenize a portion of its future production. Investors who purchase these tokens would then be entitled to a share of that rare metal production once it is mined.