For those conversant with happenings and developments in the web3 space, it's common knowledge that RWA, real world assets, is fast becoming a major topic in the world of web3.
Real World Assets?
The concept behind RWA is one that would go down as a highly welcome one. Imagine the lure of investing in traditional assets found in the real world but now being done on the blockchain.
I Was opportuned to be on the space hosted by @ice-nfts on X and it was an eye opener, especially to those of us new in the space.
According to ice, Real world assets can said to be fungible and non fungible tokens, nfts, used to represent traditional assets that we can see and relate with. Assets like real estate, agriculture, music and the likes.
Through tokenization, there is the ability to create representation of any real world assets in the form of tokens and nfts. According to 'Salamander', (Co host of the showl) real world assets is projected to be about 16 trillion dollars in value in coming years. This just means it is a sleeping giant that the world needs to key into.
To put in another perspective, we need RWA if we really want to see blockchain technology truly take off. The fact is RWA is trying a great deal to revolutionise the way we look and see investments.
Viability?
According to one of the speakers, Stanley, for a RWA project to be deemed viable, it needs to be tied to real assets. This for me is a salient point, as your assets need to be associated with real traditional assets.
Another thing is that they need to be stable in other to earn the trust of investors. They also need to be tied to something who's value has been proven over time. One can fault this takes as they are important consideration for one going into this space.
The fact is, if you can tokenise some important traditional assets, you can actually bring in investors in good numbers. Like said earlier, this space is a sleeping giant. You are not just holding a collectible but something that represents something of great value.
But, despite the promising prospects, RWA are faced with some form of challenges and I believe they need proper addressing. One major challenge is scalability. It needs to increase it's transaction processing capacity in other to accommodate potential investors.
Whichever way we look at it, though a lot needs to be addressed, RWA is gaining a lot of traction and seems an exciting space. For me they are already positioned to be a major bridge between web2 and web3.