WEB3 – A Natural & Logical Progression
The Direction Is Set
The acceptance and promotion of Bitcoin from the likes of BlackRock and others would have shocked Crypto enthusiasts a few years ago. However, this moment has been in the making for some time now. Similarly, a WEB3-based world is in its formative stages, and though many still regard it as an unlikely outcome, I believe it’s on the way. Consider for a moment Larry Fink, and his recent comments regarding the Crypto space.
It didn’t take him long to move from the idea of Bitcoin to the concept of tokenization. Bitcoin ETFs are still busy attracting new users, as well as finding their feet amongst a global audience… and this chap is already talking about tokenization. Regardless of what many think or believe, a tokenized world functions best in a WEB3 infrastructure. The idea behind a tokenized system is the ability to move and interchange assets seamlessly.
Trying to achieve this goal via WEB2 would be somewhat clunky, and even frustrating. At the end of the day, tokenization was designed in a WEB3 world and therefore functions best in a WEB3 world. Some would argue that tokenization within WEB2 makes little to no sense. The broader adoption and acceptance of Bitcoin have set the world in a completely different direction.
Financial “movement” and the transfer of ownership operate at their best running upon WEB3 rails. This is a reality that cannot be disputed. Many arguments can be made against it and for various reasons. However, its efficiency cannot be denied. At the end of the day, efficiency is key in a fast-paced world. WEB3 is an inevitable outcome, especially since financial behemoths such as BlackRock are proposing a tokenized future.
The Most Logical Outcome
When we examine tokenization as it currently exists, such as in the tokenization of real estate, we can see how this model works to simplify and reduce friction, regarding the exchange of ownership and transactional interaction. Smaller investors can choose to own a fraction of a property, as well as earn rental income in proportion to their percentage of ownership.
Due to the ownership being in the form of a tokenized model, it can be sold/traded as any other Crypto asset on a public platform. A real estate sale can often take months to finalize, whereas tokenization enables immediate settlement. These are just some of the benefits that are already beginning to manifest in a tokenized scenario. The transfer of ownership and finality are superior on every level.
It’s important to remember that unique industries and sectors will also have unique benefits in a tokenized world. In many ways, it will be a journey of ongoing discovery and innovation. Traditional and lengthy transactions will be reborn as superior and speedy. Not only that, but the aspects of private ownership, liquidity, and portability are incredibly attractive to just about every human being on the planet.
The progression of tokenization is strongly tethered to the adoption, innovation, and development of WEB3 and DeFi. This is a journey that requires all three sectors to come along for the ride. I guess Gary and the SEC are waiting for just the right moment… before they launch their attack on DeFi. However, his previous attack had little to no effect. The correction in the most recent regulatory crackdown was simply a knee-jerk reaction.
Final Thoughts
Bitcoin ETFs are doing an amazing job, and the halving is just two months away. Although it’s not an impossibility, there is very little that can deter Bitcoin and the broader Crypto market at this stage of the game. In my mind, WEB3 and RWA are likely to rally significantly during the final stages of this cycle. For investors looking for a niche that is likely to provide an extended period of accumulation, WEB3 and RWA might be a good call.
Just today, I came across what I believe to be a possible super gem in this arena. I found myself researching altcoins between 12 am and 3 am this morning after a rather eventful day, which I may still write about. Let’s just say, it was an interesting day. Anyway, that’s it for this one. Catch you next time!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.