> For the complete documentation index, see [llms.txt](https://docs.allo.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.allo.xyz/tokenize/architecture.md).

# Architecture

<figure><img src="/files/BF0oNmongxPk7DKfWFdD" alt=""><figcaption><p>Tokenization flow</p></figcaption></figure>

1. **User**: The process begins with the user, who initiates the tokenization process.
2. **Create Token**: The user creates a digital token that represents ownership of the real-world asset they wish to tokenize.
3. **Asset Preparation**: After the token is created, the user prepares the asset for tokenization, ensuring it meets the necessary legal, financial, and technical requirements.
4. **Launch Token**: The user then launches the token, making it available on the blockchain, allowing others to participate in or invest in the tokenized asset.
5. **Trade**: Once launched, the token can be traded, enabling liquidity and allowing users to buy, sell, or transfer their ownership stake in the asset.