Promoting the continuous introduction of blockchain into the real world and focusing on solving practical problems in the real world are the inevitable directions for the development and application of blockchain technology. RWA refers to the equity share and tokenization of various tangible or intangible real assets with intrinsic value in the real world, which is worthy of active exploration, but there are also major challenges and must be actively and steadily promoted.
Since its official launch in early 2009, Bitcoin has become a pureblockchain "native (chain-born) encrypted asset"(also known as cryptocurrency, digital assets, etc.). However, Bitcoin's blockchain is highly closed, with only the functions of "pushing blocks into chains, mining to produce coins, transferring coins between nodes, distributed verification and recording". Moreover, its operating efficiency is low and its cost is high. Except for being sought after by technology geeks, it is difficult to form a good application scenario and realize its value.
Based on Bitcoin,
Ethereum blockchain and Ether were launched in 2013. Not only did they improve their operating methods, but they also added smart contract functions and improved efficiency. They also supported users to raise Bitcoin, Ether and other chain-born crypto assets through ICO (initial digital currency offering) on their open source systems (such as ERC-20) and issue new "
derivative crypto assets (essentially crypto securities assets). The development of derivative crypto assets has boosted the price of chain-born crypto assets such as Bitcoin and Ether, making crypto assets attract more and more attention and investment.
Bitcoin, Ethereum and other crypto assets run on blockchain systems that are decentralized, highly anonymous, open and transparent. Within the same blockchain system, point-to-point rapid transfers can be achieved, "as fast, safe and low-cost as sending text messages." However, different crypto asset blockchain systems are completely independent of each other. It is difficult to achieve point-to-point timely transactions and transfers across chains. The conversion efficiency is very low and the cost is very high. It is difficult to complete without exchanging with legal currency.
However,Bitcoin, Ethereum and other blockchains themselves do not have functions such as exchange with other encrypted assets or legal currencies and loan interest calculation. Therefore, the exchange with other encrypted assets or legal currencies must be connected to a dedicated encrypted asset trading platform (exchange), which has given rise toa dedicated encrypted asset exchange industry.
At the same time, as the traditional legal tender payment and clearing system is still unable to adapt to the needs of 7x24-hour global online trading of crypto assets, this has given rise to legal tender stablecoins pegged to a certain legal tender, such as USDT and USDC, etc. (some people once imagined not to peg to legal tender, but to create pure algorithmic stablecoins, but without real value support, it is easy to form fraud, and practice has proved that this is simply not feasible), as a medium connecting legal tender and crypto asset transactions (stablecoins are actually tokens of their pegged currencies and must be subject to the supervision of token operations in various countries. They themselves also have market prices for transactions with legal tender, and their market prices are only basically stable, not absolutely fixed).
This adds a new operating link for encrypted assets, andencrypted asset exchanges and legal currency stablecoins (including issuers, operating platforms, reserve asset custody and auditing agencies, etc.) are all centrally operated and managed. The "decentralization and security" of encrypted assets such as Bitcoin that operate on this basis actually have great risks.
In addition, chain-born encrypted assets such as Bitcoin are not real-world physical assets (unlike gold), but are only special digital assets. Once trust is lost, they will be wiped out and worthless. Its total amount and the amount added per unit time are completely set by the system, and cannot be adjusted accordingly according to the changes in the value of tradable wealth. It does not meet the essential requirement that the total amount of currency must change accordingly with the changes in the total value of tradable wealth, so as to maintain the basic stability of the currency value. It is even more impossible to subvert or replace sovereign currency as the world currency (it still needs to mark its price with legal currency). Its value mainly depends on the size of its real application space (it needs to work hard to expand the application scenarios) and the changes in people's beliefs and supply and demand. The amount of Bitcoin available for trading is very small, and its price is very easy to fluctuate greatly, and it is increasingly controlled by a few people. Price increases have become the fundamental source of income for investors, and it is impossible to achieve so-called fairness and justice.
The development of Bitcoin and stablecoins has a very important significance in that it provides new inspiration and attempts for the form or operation of currency: Currency is destined to accelerate its move towards digitalization and intelligence. What needs to be encrypted is no longer the currency itself, but the currency wallet (account number). Through a string of special numbers, the identity of the householder, public and private keys, smart contracts, account balances and other elements are included, and encryption technology is used to ensure its security. On this basis, the payment and settlement of currency can be operated on the ordinary public Internet without running on specific local area networks and dedicated lines, thereby greatly reducing operating costs and improving operating efficiency. This provides an important reference for the digitization of legal currency.
As for those
derivative crypto assets, they are essentially digital equity securities products , and it is difficult for the funds they raise to create the expected value (the success rate of ICO coin issuance projects is very low ). If ICO is not closely monitored, it is difficult for investors’ interests to be effectively protected and it is easy for the actual controller or his team who issues coins through ICO to fleece them (such as absconding with the money).Therefore,although the transactions of Bitcoin and other encrypted assets are generally heating up and expanding their influence, they are difficult to solve practical problems in the real world. There is great uncertainty about their true value and they also hide great compliance and regulatory(including tax supervision, bank secrecy laws, anti-money laundering and anti-terrorist financing, financial sanctions and investor protection, etc.)risks.
In 2017, a pixel avatar project called CryptoPunks appeared on the Ethereum blockchain system. Each pixel avatar is unique and cannot be copied, thus forming a new tradable product, named "NFT" (Non-Fungible Token, literally translated as "Non-Fungible Token", which is essentially an indivisible and unique digital encrypted asset. Some peopletranslate "Token" as "Token", which is inappropriate because "coin" must be homogeneous and divisible).
NFT is no longer completely a chain-born crypto asset or a derivative crypto asset, but a digital tradable crypto equity certificate (token) of pictures, artworks, games, cards and even virtual real estate in the real world that can be encrypted, protected and collected and displayed to facilitate its trading and circulation and achieve better protection of the owner's rights and interests. As a result,
digital assets are no longer just crypto assets (cryptocurrency), but include two major types: homogeneous crypto assets and non-homogeneous NFT crypto assets.
Currently, NFTs are mainly issued, traded and circulated based on the Ethereum blockchain system. Due to the low operating efficiency of the Ethereum network and high handling fees, most NFT trading markets have not completely decentralized. In addition, since large files cannot be stored on the chain, NFT-related pictures, videos and other files are still stored off-chain, and only the hash values of these files are stored on the chain. This poses a great risk to NFT holders, and the protection of NFTs is insufficient. Investors generally suffer losses, and supervision has been strengthened, reflecting that the development of NFTs has its own defects and it is difficult to have a large space.
However,
The emergence of NFTs has opened up people's exploration of sharing and tokenizing real assets in the real world to enhance their tradability and circulation.
RWA (Real World Assets) refers to the equity share and tokenization of various tangible or intangible real assets with intrinsic value in the real world (including real estate, commodities, stocks, bonds, credit, energy, artworks, intellectual property, etc.) so that they can be widely (globally) traded and managed on the blockchain, and transaction efficiency can be improved through smart contracts, thereby improving the liquidity and security of these assets, enhancing market transparency and credibility, and expanding transaction participants and social investment and financing opportunities.
From blockchain-born crypto assets such as Bitcoin, derivative crypto assets launched through ICO, and supporting trading platforms and stablecoins, to NFT and RWA,the development trend is to push blockchain into the real world, focus on solving practical problems in the real world, create more application scenarios and market value, and promote
the development of new models of decentralized finance DeFi (Decentralized Finance) and related technologies and service industries (lawyers, accountants, taxation, etc.).
This is the inevitable direction of blockchain technology research and development and implementation.
Of course,this also brings up two new questions that need to be pondered: If RWA can really develop fully, do crypto assets such as Bitcoin still have value and space to exist? Fiat stablecoins have been introduced and operated for more than ten years, with continuous improvement of rules, continuous expansion of scale, and overall stability. So, why can't fiat currencies learn from the technology of stablecoins and directly transform into digital legal tender that can replace stablecoins?
Since the underlying assets can be greatly expanded and enriched, RWA should have huge room for development, including global transactions, which will also enable blockchain technology to play a full role.
However,the authenticity, legality, and accuracy of RWA's underlying assets require higher and more difficult management. If the authenticity, legality, accuracy, and effective supervision of transactions of its underlying assets cannot be guaranteed from the source of the chain, its transaction flow will face serious problems and challenges, and the interests of investors may be difficult to be effectively protected
.
The current problems of NFT have not been effectively solved in RWA. Compared with traditional securities or commodity exchanges, the actual efficiency and cost of RWA and DeFi in asset authentication, registration, custody, trading, and liquidation are not broad enough for participants, and the advantages are not obvious enough. There are still many problems and challenges. It is difficult to say that it is successful if the issuance is successful but the overall expected benefits are not finally achieved.
Therefore, The development direction of RWA is unquestionable and deserves high attention and active exploration. However, it is necessary to ensure the authenticity, legality, accuracy and completeness of the underlying assets from the source of the chain, and continuously improve the security and convenience of the entire transaction and circulation process. In China, to develop RWA, it is necessary to accelerate relevant technological breakthroughs, especially to establish and improve relevant laws, regulations and financial supervision, encourage financial innovation (including the creation of encrypted assets, supporting trading platforms, stablecoins, NFT, RWA and other research and development), and the supporting RMB stablecoins and even digital RMB (which need to learn from the stablecoin model and be transformed) must also keep up. In addition, judging from the existing data asset management and transactions in my country, there are actually still big problems. For example, from the perspective of the initiator (legal person or individual) of the behavior that generates the data, there is a serious problem that the identity information and transaction data are widely dispersed to and owned by the business handlers, but the business handlers find it difficult to obtain all (complete) transaction data of the initiator of the behavior, and many data have to be purchased from outside, and their authenticity and accuracy are difficult to guarantee. There are obvious loopholes in the protection of the identity information of the initiator of the behavior and the confirmation of transaction data. It is urgent to comprehensively collect transaction data from the perspective of the initiator of the behavior and the entire country to effectively protect the identity information. On this basis, the rights and interests of the initiator of the behavior to its transaction data can be fully protected, and the safe and efficient transaction of digital assets can be promoted, and the intrinsic value of digital assets can be fully explored. This must also be seriously faced and effectively solved in promoting the development of RWA.
It can be seen from this that RWA is worth actively exploring, but there are also major challenges, which must be actively and steadily promoted.
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CatherineIn Thailand, armed robbers forced a Ukrainian man to transfer $250,000 in USDT under threat. They restrained him and warned against reporting the crime before fleeing. Thai police soon arrested four suspects, including a regular USDT buyer from the victim.
Kikyo