- According to Sergey Nazarov, co-creator of Chainlink (LINK), a blockchain oracle service, one of the emerging areas of the digital asset field is going to become a major trend.
On the social media site X, Nazarov informs his 150,000 followers that real world assets (RWAs) appear to be destined to become the next big thing in blockchain.
Tokenizing assets in conventional markets, like as real estate, loans, bonds, and more, on-chain is the goal of the RWA trend in cryptocurrency.
Only a very small portion of value is currently in the RWA format, but tens of trillions of value can be swiftly converted into a RWA. This covers everything—all finances, all real estate, all commodities, and much more.
According to Nazarov, on-chain RWAs are a better format than traditional infrastructure for safe asset ownership and transferability. He also points out that these RWAs may be bought and transferred more easily between different nations and financial systems.
The founder of Chainlink claims that RWAs make it simpler to access global liquidity, which has long helped to fuel the rise of cryptocurrencies.
Compared to typical systems, RWAs can hold crucial data points that demonstrate significant aspects of the underlying asset much more quickly and efficiently. Good examples include the use of Chainlink to provide proof of reserve of the present condition of an underlying asset and NAV (net asset value) data for major CSDs (central securities depositories) on-chain.
RWAs are just beginning to use on-chain reasoning to make their assets more efficient. Over time, there will be significant reductions in operating expenses along with significant gains in efficiency as more of a fund’s administration and operations are done online.
For instance, the timing for redemption can be greatly accelerated, from months to minutes, by placing NAV data on-chain at rates quicker than the existing system. This has a significant positive economic impact.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
