RWA’s (Real World Assets) and their part in the cryptocurrency market.
Real world assets or more commonly referred to as RWAs are the idea that real world tangible assets can be represented via a token/coin, this is different to an NFT where these usually do not represent a real world tangible asset.
RWAs help provide yet another fascinating use case for the cryptocurrency asset class in the form of tokenising assets such as real estate assets, private equity investments, fine art fractalization, carbon credits and tokenized commodities.
Bringing tokenization to these assets helps in many ways.
Many of the assets I have just listed face major problems in terms of having an immediate illiquid market opposed to an immediate liquid market, making it increasingly harder for the buy/sale of these assets smoothly and quickly. Being able to tokenize the asset as a whole or to be able to fractionalise the asset in the form of many tokens will help provide solutions to the lack of readily-available liquidity of the markets for these assets such as fine art, this will also make these assets much more appealing to the smaller investor, with the implementation of RWA’s one should also see the entry barrier be lowered in terms of cost to having ownership in any of the listed assets.
So what actually are some interesting RWA’s that i've been keeping my eye on?
$BOSON - Boson Protocol
$PENDLE - Pendle Finance
$LCX - LCX Exchange
$LTO - LTO Network
Are just to name a few of the most noticeable projects…
RWSs bring the principles of blockchain – decentralisation, transparency, and efficiency – to various sectors such as ride hailing and delivery services, ecommerce and the sharing economy. The difference between RWAs and RWSs is while RWAs focus on tangible assets such as bonds, stocks, and real estate, RWSs tokenizes the value of services.
Projects such as, DTravel, Hyve, Devour
Real World Services (RWS) are not just an extension of the RWA narrative, but a significant leap forward in the way every single person in the world could interact with blockchain technology. By addressing real-world challenges in service sectors like vacation rental bookings and ride-hailing, RWSs demonstrates the potential for mainstream adoption. The future of RWS, riding on the success of RWAs, signals a new era of synergy between DeFi and traditional finance, promising greater efficiency, flexibility, and inclusivity.
All in all RWAs and RWSs look to play a big part in cryptocurrencies future relation with tangible assets in the real world, please feel free to look over the projects and coins listed and remember to do your own due diligence and research. What are some RWA/RWS coins and projects you've been keeping an eye on? Let me know in the comments below ⬇️
