分類: RWA 101 Articles

Security Token Offerings (STOs) and Real-World Assets (RWAs) involve asset tokenization on blockchains but differ in nature and regulation.  STOs offer regulated investment avenues, suitable for institutional investors; RWAs democratize asset access, appealing to retail investors. STOs face complex compliance requirements, while RWAs involve challenges in asset valuation and custody. According to BCG, the RWA…

Ethereum Virtual Machine (EVM) compatibility refers to blockchains supporting EVM to run smart contracts, enabling cross-chain deployment of Ethereum-developed dApps. The EVM, proposed by Vitalik Buterin in 2013, is Ethereum’s core computing engine, executing smart contracts and maintaining blockchain state. EVM-compatible blockchains (e.g., Polygon, Binance Smart Chain, Avalanche) support ERC-20 tokens and NFTs, offering low-cost,…

Tokenomics refers to the economic model of tokens, designing issuance, distribution, incentives, and burning mechanisms that impact their value and sustainability. Key elements include:  For example, MakerDAO adjusts DAI supply via stability fees to maintain its dollar peg. Well-designed tokenomics enhance project appeal, attracting investors, as seen in Uniswap’s UNI airdrop incentivizing participation. Poor design…

Virtual asset custody and securities custody aim to protect investor assets, but they differ in nature, regulation, and operations.  Virtual Asset Custody: Involves secure storage of cryptocurrencies (e.g., USDC), addressing risks like hacking and private key loss. Techniques like cold storage, multi-signature wallets, and multi-party computation (MPC) ensure asset security. Regulatory frameworks are evolving, requiring…

Wrapped tokens convert one asset (e.g., BTC) into a standardized token (e.g., ERC-20 WBTC) on another blockchain to enable cross-chain interoperability. They work by locking the original asset in a smart contract or digital vault and minting equivalent tokens on the target blockchain, addressing blockchain incompatibility. For example, WBTC allows Bitcoin to be used in…

Decentralized finance (DeFi) protocols are blockchain-based financial applications that provide lending, trading, and liquidity mining services through smart contracts, eliminating traditional intermediaries like banks or brokers. Operating on public blockchains like Ethereum, they ensure transparency, security, and global accessibility. For example, MakerDAO enables RWA lending via its DAI stablecoin, with a market size of $436…

Whitelisting restricts blockchain transactions to addresses verified through KYC/AML processes, ensuring regulatory compliance and security. This mechanism is common in initial coin offerings (ICOs), initial exchange offerings (IEOs), and NFT launches, where participants must meet criteria like providing identity information or minimum investment amounts. Whitelisting prevents fraud and bot participation, ensuring fair token or asset…

Smart contracts are self-executing programs on a blockchain that automatically execute transactions or operations based on predefined conditions (e.g., paying USDT). First proposed in 1994 by legal scholar and cryptographer Nick Szabo, smart contracts are now widely used on blockchain platforms like Ethereum, supporting complex decentralized finance (DeFi) and non-fungible token (NFT) applications. They are…

Tokenization is transforming asset management by converting real-world assets (RWAs) like real estate, bonds, art, and gold into digital tokens on a blockchain. For traditional finance professionals navigating Web3, tokenization offers a powerful tool to optimize portfolios with reduced costs, enhanced liquidity, and improved transparency. Drawing parallels with Nasdaq’s 1971 electronic trading revolution, this article…