The large-scale adoption of RWA will begin with NFT being accepted by the market

Written by: WILLIAM M. PEASTER

Compiled by: Xiaobai Navigation Coderworld

In short, there are two types of real-world assets (RWAs): one that represents financial instruments (bonds, real estate, stocks, etc.) and the other that represents cultural items (baseball cards, Pokémon cards, etc.).

In either case, more and more people and organizations are going through the process of moving “offline” items “on-chain” to take advantage of the unique capabilities that networks like Ethereum can offer. Think of non-custodial lending capabilities in decentralized finance (DeFi), or using non-fungibleToken The public, global auction infrastructure provided by NFTs. Its core is to make illiquid assets more liquid.

However, RWAs are not new in the crypto space. For example, Maker, the first DeFi protocol to gain mass adoption, has been increasing its use of treasury-like tokens since April 2021. RWAsXiaobai Navigation To support its Dai stablecoinOther DeFi projects, such as Canto, Frax, Maple, and Polygon have also recently made further progress in the RWA field.

However, if you look closely, the dominant approach so far in DeFi has been through fungible ERC-20 tokens like Maker. Token池来为 RWAs 进行代币化。Judging by the fact that RWAs now have the majority of support behind Dai, this approach has worked well, at least so far..

Conversely, in culture, NFTs have become the tokenization tool of choice because they lend themselves to a one-to-one mapping with unique collectibles, such as a first edition “brand new” Charizard card that is not interchangeable with other collectibles.

One of the most noteworthy major projects at present is Courtyard.io, which recently made a splash with the release of its Pokémon cards on Polygon.

Courtyard is not only a tokenized service, but also a marketplace that allows collectors toCustody and tokenizationtheir own graded trading cards,or buy and sellCards that have been chained by others. Its card packs, some as low as $5 each,In a few secondsSold out, and a recent pack opener won onePristine "Mario and Pikachu" cards worth about $6,000!

All cards on the platform are authenticated and then stored in Brink's Vault, ensuring that the associated NFT remains intact and redeemable at all times.

But it’s not all fun and games at the intersection of NFTs and RWAs, we’re also seeing some finance-centric use cases starting to gain initial traction.

For example,Roofstock onChain Several houses have been resold in the real world via NFTs on OpenSea, with the highest current sale price being 218k USDC.

Over time, I predict we’ll see more and more DeFi projects adopting NFT tokenization methods as more unique financial assets are brought on-chain and innovation around NFTs continues to emerge.

In fact, we have opened up new possibilities, both culturally and financially, such as accommodation and composability – e.g.Now you can put other tokens into your RWA NFTs via ERC-6551, or put your RWA NFTs into other on-chain transactions, such asOn-chain game engine.

This stuff might sound a bit far-fetched right now, but that’s the power of RWAs and why they’re so attractive in the future, they pave the way for doing things on-chain that you can’t do anywhere else, and that’s the magic.

However, at least for now, the RWA field is still a relatively experimental and pioneering field as the frontiers are being established. Many challenges remain, such as the currentcryptocurrencyThe lack of regulatory clarity has kept many companies and major financial institutions on the sidelines.

As we gain more clarity over time, there may eventually come a day when all financial instruments and many cultural items will be released on-chain, so what is my overall point? If that future does arrive, NFTs will undoubtedly play a big role in making it all happen!

The article comes from the Internet:The large-scale adoption of RWA will begin with NFT being accepted by the market

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