⛓️Advantages of RWA + Blockchain

The application of RWA in the blockchain field is an emerging trend that can provide more asset sources and revenue opportunities for decentralized finance (DeFi) and also offer more innovation and efficiency for traditional finance. RWA can cover various types of assets such as real estate, commodities, artworks, bonds, stocks, loans, etc.

Blockchain technology includes features such as distributed efficiency, transparency, decentralization, security, and cross-border convenience. Through contract technology, it significantly increases the frequency of RWA transactions while reducing transaction costs. In summary, it has several advantages:

• Increased Transparency: Transaction information in blockchain networks is publicly visible, allowing anyone to view and verify, thus enhancing transaction transparency and credibility.

• Enhanced Security: Blockchain technology uses cryptography and distributed ledger mechanisms to ensure transaction security and tamper resistance, effectively preventing forgery and tampering of digital assets.

• Decentralized Trading: Blockchain networks are decentralized distributed networks without centralized control and intervention. This means that RWA transactions can be conducted without geographical and political restrictions, reducing the costs and risks of intermediaries.

• Improved Liquidity: Through digitization and blockchain technology, RWA transactions can be more efficiently conducted and ownership can be swiftly transferred. This increases RWA liquidity and enhances market efficiency.

A typical case of RWA is real estate. Traditional real estate transactions usually require a lot of intermediaries and fees, and the transaction process is cumbersome and prone to disputes. However, by digitizing real estate assets and using smart contracts based on blockchain technology for transactions, the process of buying and selling real estate can be quick, transparent, and secure.

Another case is the art market. Buying and selling artworks has always been a limited, complex, and opaque process. However, through RWA digitization, investors can purchase and trade ownership of artworks through blockchain networks, enabling greater participation and liquidity. Furthermore, digital art assets can provide more certificates and verification information, increasing investors' trust in the value of artworks.

In conclusion, the emergence of RWA enables the digitization of traditional assets, achieving higher transparency, security, and liquidity through blockchain technology. This brings more innovation and opportunities to financial markets while allowing investors to participate more freely and conveniently in the trading of various assets.