Digital Assets Revolution thanks to the blockchain is a fact. Exploring the excitement and reasons behind tokenizing assets like real estate, gold, vehicles, bonds, or CO2. An enlightening introduction to NFTs, DeFi, and their economic and corporate advantages in tokenization.
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ToggleDigital Assets Potential Impact
Remember this: BCG predicts over $16Tn in illiquid assets (difficult or slow to trade) could be revolutionized by tokenization by 2030. Quite a significant number. Many quickly dismiss DeFi and Cryptocurrency as mere ‘Ponzi schemes’ without understanding the advantages of round-the-clock markets, automated trading, and the transparency and auditability they offer.
Put simply: You can trade anything, at any time, anywhere, with the ability to completely audit the underlying code. The assets in question could be physical (like gold, real estate, consumer items, collectibles) or non-physical (like government bonds, carbon credits, intellectual property), offering a wide range of industries and markets to innovate and enhance.
Auditing and Verification in Blockchain
Of course, some level of auditing and verification is necessary for any digital counterparts of assets we create. Questions like ‘Is the real estate in prime condition?’, ‘Is the existence of the gold verifiable?’, ‘Does the seller legally own the intellectual property?’ remain. Blockchain technology alone can’t resolve these issues – additional physical and digital processes are still essential.
The Value in Market Advancements
The cost of implementing these verification processes usually becomes insignificant when compared to the marketplace advantages like attracting more capital, enhancing transparency, reducing risks, and fostering new product development. That’s where the true value lies.
Comprehensive Report Overview About Digital Assets
Do explore this report, starting with an accessible 1-page summary for those who prefer brief overviews, but it also covers:
- What ‘Real World Assets’ are
- The functioning of asset markets
- Instances of Real World Asset protocols (e.g., MakerDAO, Centrifuge, Goldfinch)
- Trends in Blockchain-based Real-World Assets
- Regulatory aspects to consider
- The comparison between Macro Finance and DeFi
Always remember, that relying on a single report or author for all insights on Web3 (or any subject) isn’t advisable. If you have queries, engage with the community and continue exploring. There’s much more to learn.
Are you enthusiastic or skeptical about this emerging trend of financial products and markets for personal investment or as a business seeking quicker revenue and funding opportunities?
Working across multiple aspects of Blockchain and Web3 technologies since 2016; He has helped large organizations and start-ups to harness the benefits of using decentralized technologies to create commercially viable businesses and digital transformations. He has experience in leading and scaling large ecosystem and delivery teams to bring Blockchain-enabled platforms into production.
