# Data Tokenization

<figure><img src="/files/QCicrf365x3KkfIr9TGh" alt=""><figcaption></figcaption></figure>

### Data Tokenization Flow

1. *Validation of Data*
   * *Objective*: Ensure that only high-quality, validated data is eligible for tokenization.
   * *Process*:
     * After data is submitted and validated using smart contracts, it is marked as "validated" or "rejected."
     * Only validated data will proceed to the tokenization step.
2. *Creating Tokens*
   * *Service Used*: Hedera Token Service (HTS)
   * *Inputs Required*:
     * *Data File Hash*: Unique identifier for the validated data file.
     * *Token Name*: A descriptive name representing the data asset (e.g., "Validated Data Set 1").
     * *Token Symbol*: A short identifier for the token (e.g., "VD1").
     * *Token Supply*: The number of tokens to be created, typically set to one for unique data assets.
     * *Decimals*: Number of decimal places the token can have (usually set to zero for unique assets).
     * *Metadata*: Information about the data, such as origin, type, and validation date.
   * *On-chain Recording*:
     * Create the token using the Hedera Token Service, linking it to the validated data file.
     * Store the token ID and relevant metadata on the Hedera ledger, ensuring traceability.
3. *Distributing Tokens*
   * *Objective*: Allow data owners or providers to distribute tokens representing their data.
   * *Process*:
     * The token can be transferred to buyers, researchers, or organizations needing access to the data.
     * Each transfer is recorded on the Hedera ledger, maintaining a clear ownership history.
4. *Access Control and Licensing*
   * *Inputs Required*:
     * Token ID
     * Licensing terms (e.g., usage rights, duration)
   * *On-chain Recording*:
     * The Climate Intelligence smart app can enforce licensing terms and record them on-chain, ensuring compliance and clarity regarding how the data can be used.


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