# Terminology

To ensure clarity and understanding throughout this litepaper, the following key terms associated with Hedge's platform are defined:

* **Blockchain:** A decentralized digital ledger technology that records transactions across multiple computers securely and immutably.
* **Tokenization:** The process of converting rights to an asset into a digital token on a blockchain network.
* **Dividend**: A profit share payout to investing token holders
* **Real World Assets (RWA):** Tangible, physical assets such as real estate properties that exist in the physical world.
* **Non-Fungible Tokens (NFTs):** Unique digital tokens that represent ownership or proof of authenticity of a specific item or asset on a blockchain.
* **Fractional Ownership:** The division of asset ownership into smaller shares or fractions, allowing multiple individuals to hold a portion of the asset.
* **Smart Contracts:** Self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code.
* **Liquidity:** The ease with which an asset can be converted into cash without affecting its market price.
* **Decentralization:** The distribution of power away from a central authority in a network, characteristic of blockchain technology.
* **Compliance Framework:** The set of guidelines and regulations that govern the operation of a platform, ensuring legal and ethical standards are maintained.
