Tokenization Models on Hedera Hashgraph

This technical report provides an overview of the two primary models supported by Hedera Hashgraph for tokenization: the Hedera Token Service and the Hedera Consensus Service. It outlines the technical fundamentals of each model, aiming to assist token issuers in determining the most appropriate deployment model for their specific use cases. The report details the key concepts involved in tokenization, including token contracts, state management, and account structures. It also distinguishes between fungible and non-fungible tokens, explaining their respective characteristics and use cases. Furthermore, the document discusses the benefits of using Hedera's tokenization solutions, such as enhanced market efficiencies, transparency, and increased liquidity. The report emphasizes the importance of public networks in achieving mainstream adoption of tokenization, addressing performance, cost, and compliance requirements. Additionally, it presents a roadmap for future developments in Hedera's tokenization capabilities.