Real World Assets

8rvz...SVQt

3 Aug 2023

I'd like to draw attention to a 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 the very first sign, it seems to be a kind of STOs.
As I read, the whole idea of RWA is to tokenize real assets like properties, lands, art, and different type of luxury stuff in general.
The easiest example will be property - hotel, luxury apartment, 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 into 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 firmly recommend reading the information contained in this blog, especially about the tokenization step, it's quite clearly described, and I don't think, I could do it better.

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

"A security token is a unique token issued on a permission 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 look like the next stage of security tokens, they are being managed by smart contracts, which 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, as you can see in that movie:

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

Resources

Cryptocurrency Blockchain DeFi Investments STO