What is RWA#
RWA stands for "Real World Assets," which refers to real-world assets that are tokenized through blockchain technology. Owning a token represents ownership of the asset in the real world, allowing you to engage in activities such as lending, renting, buying, and selling on the blockchain.
The crypto industry has seen successful cases of RWA, with stablecoins like USDT and USDC being examples of RWA.
Why RWA is Needed#
Blockchain operates independently of the real world, with data generated and used on the chain. Assets from the outside world cannot be directly used on the blockchain. "Real World Assets (RWA)" map real-world assets to the crypto world, allowing almost any asset with value to be tokenized, whether it's wine or financial assets. This provides these assets with better liquidity, lower transaction costs, and increases investor confidence and transparency. It is not an exaggeration to say that "RWA" is the ace in the blockchain industry's journey towards a multi-trillion dollar market.