Fractional ownership allows multiple individuals to co-own a digital asset by dividing it into smaller parts, often represented as tokens on a blockchain. This method enables investors to purchase a fraction of a high-value asset, making it more accessible.For example, instead of buying a full piece of art or real estate, investors can acquire tokens that represent their share of the asset. This democratizes investment opportunities, allowing people to participate in markets they otherwise couldn’t afford.Fractional ownership also increases liquidity. Tokens can be traded on exchanges, offering a way for owners to sell their shares without needing to liquidate the entire asset. This feature attracts more investors, enhancing the overall market.However, fractional ownership requires trust in the underlying smart contracts and governance structures that manage the asset. It’s essential for participants to understand the risks, including potential market fluctuations and regulatory issues. Overall, fractional ownership offers a new avenue for diversifying portfolios and engaging with valuable assets.