SMART CONTRACTS AND TOKENIZATION: A SYNERGISTIC APPROACH TO TRANSFORMING FINANCIAL INDUSTRY

Abstract

This article explores the synergistic effect of combining smart contracts and asset tokenization in the context of transforming financial transactions. The author analyzes the essence and features of smart contracts and tokenization processes, considering their advantages and potential risks in the financial industry. The paper highlights key challenges in implementing these innovative tools, including imperfect legal regulation, ensuring data security and confidentiality, and the volatility of cryptocurrency markets. The author emphasizes the need to create clear legal frameworks, develop security standards and best practices for smart contracts, and foster the development of appropriate infrastructure and ecosystem. Special attention is given to the synergistic effect of combining smart contracts and tokenization. It is noted that such synergy allows for the automation of tokenized asset management processes, ensures transparency and efficiency of transactions, and creates new investment products and business models.