Sirwin
Sirwin
Wall Street

Real World Assets

By Sdom | Sdom84 | 30 Jan 2023


I'd like to draw an attention to trend called Real World Assets (RWA).
What is that?
To be honest, I don't know...
I found a bunch of information about it, at very first sign, it seems to be kind of STOs.
As I read, the whole idea of RWA is to tokenize real assets like: properties, lands, art, different type of luxury stuff in general.
The easiest example will be property - hotel, luxury apartament or office building,   divided into equal digital parts (Tokens), and offered to investors.
The tokens act as a transferable unit and represent real-world assets, this allows to enter them to the DEFI market.
For a more detailed description I will put a quote (from https://www.zeeve.io/blog/comprehensive-guide-on-tokenized-real-world-assets)


"How the Real Asset Tokenization Works 

The work mainly depends on the smart contract functionality. Smart contracts turn real assets into digital assets. The conditions are coded on the contract and are shared with the blockchain network. And as we know, smart contracts are self-executing once the contract terms and conditions are met, the deliverables, i.e tokens, are allotted. 
Tokenized real estate investing employs a special-purpose vehicle for investing in real estate. Furthermore, a private placement offering is created to maintain details of the investment."


I firmy recomend to read information cointained in this blog, especially in referance to tokenization step, its quite clearly described, and I don't think, I could do it better.

As I mentioned before, RWA tokens according to me, are preety similiar to STOs (Security Token Offering).
In this case its tokenization of companies assets and distributed to investors.
This idea is quite old, it last few years, mainly refers to backed on different blockchains (ETH, Stellar and others).
We can find companies from various branches such: banking, real estates, healthcare, technologies, food production and many more.
STO is something like an IPO (Initial Public Ofering)
There is more accurate defitition (https://hedera.com/learning/tokens/what-is-a-security-token-offering-sto)


"A security token is a unique token issued on a permissioned or permissionless blockchain, representing a stake in an external asset or enterprise. Entities like government and businesses can issue security tokens that serve the same purpose as stocks, bonds, and other equities."

Coming back to RWA, they looks like a next stage of security tokens, due to they are being managed by smart contracts, it will make them part of DEFI (Decentralized Finance)
Good idea to connect the classical types of businesses with the web 3.0 ones
Great explanation of this process, you can se on that movie:



Do you have your own idea, how this tokens could be used? Put a comment, please.
...actually I've got some, I think its good materiał for future articles 

 

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Sdom
Sdom

Intrested in crypto, economics, numismatcs and so...


Sdom84
Sdom84

Blockchain and cryptos technologies enthiusiast

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