Ideas Continue To Evolve
The concept of the Machine Economy is a fascinating and attractive idea in the age of intelligence. It presents an exciting opportunity closely tied to technology, in particular, decentralized node infrastructures and AI. Essentially, individuals can utilize machines to generate revenue streams and alternative sources of income. This has been effectively proven with the arrival of DePIN.
Unlike many ideas, DePIN has a low barrier to entry and can be utilized by anyone with a laptop, smartphone, or other machines, such as vehicles. DePIN enthusiasts can level up their game by investing money and purchasing DePIN miners, such as weather miners. Evolution is a guarantee in the age of intelligence and technology appears to be without restrictions. DePIN evolves around the collection and accumulation of data.
As I have alluded to in the past, data is a new currency, and one that will eventually dominate. Why? Because it is backed by information and data that has inherent value, primarily if effectively utilized. This idea aligns with the tokenization of everything and the concept of an interoperable world of tokenized assets, rewards, and incentivized participation. A token that has been verified as holding inherent value can then be swapped and utilized in a tokenized economy.
This is another idea that I have envisioned and often addressed in recent years. However, as these ideas continue to mature and materialize, innovation does not stop. The subsequent development regarding tokenization and machines has been born.
The Expansion
The tokenization of real-world assets (RWAs) is not a new idea. This has been seen regarding assets such as gold, real estate, and art. The concept is simple; it promotes ownership and participation among individuals who are typically excluded from specific markets and investments. For example, the real estate market is a challenging one to enter. However, with the arrival of tokenization and RWAs, it has become affordable for almost anyone.
RWAs being tokenized and put onto blockchains enables investors to own a portion of a property, rather than needing to purchase a piece of real estate outright. The Machine Economy has now adopted this idea. Yes, everyone can use their existing devices to run free DePIN applications and generate an alternative passive income stream. However, not everyone can afford to purchase or invest in a robo-cafe or robo-supermarket.
With the arrival of Machine RWAs, investors can enjoy fractional ownership of more expensive and sophisticated machinery. The motivation behind this idea is to enjoy a portion of the revenue generated by these machines. This concept promotes expansion within the Machine Economy, ultimately promoting the advancement and development of an AI-based world. Yes, not great for restaurant and supermarket workers. However, it’s inevitable.
Machine RWAs extend beyond these sectors and are possible wherever machines can be automated and replace traditional workforces. Tokenization also removes barriers to entry, as many investors can participate in a venture, thereby alleviating the burden of capital investment from a single individual or entity. Peaq Network will be the obvious project to watch regarding the introduction of Machine RWAs.
Final Thoughts
I maintain my view that the Machine Economy, particularly DePIN, will experience enormous growth in the next few years. By 2030, I anticipate the combined market capitalization of these sectors to exceed trillions of dollars. It might sound hefty. However, with the arrival of Machine RWAs, a lot of value will arrive on-chain. It will create a compounding effect and ultimately cause valuations to skyrocket.
The adoption of existing RWAs will also facilitate the rapid adoption of this idea. RWAs, as we know them, are also yet to truly enter into their prime. In other words, tokenization will remain a strong narrative moving forward. All the best, see 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 my 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.