🤝7.1 The Challenge

The challenge of fragmentation in tokenization and decentralized exchanges is multi-faceted. Consider these key aspects:

Interoperability: Fragmentation hinders seamless communication and compatibility between different fragmented tokens and platforms, leading to a lack of interoperability.

Liquidity Fragmentation: Fragmentation can disperse liquidity across different fragmented tokens, impacting market efficiency and the overall trading experience.

Complexity for Users: Managing and tracking fragmented tokens across various platforms becomes complex for users, requiring a deeper understanding of the fragmented token landscape.

Fragmentation Risks: Increased market volatility and potential security vulnerabilities arise with a fragmented token landscape, introducing risks for traders and investors.