RWA and iExec: A New Era
As eras come and go, so have centralized computing, traditional finance and more. iExec has been present in these eras but has worked its way out and around them by creating sustainable solutions that not only keep developing but stand the test of time.
Always keen on exploring new fields in different eras, iExec has been called the cloud computing giant exploring a Web3 monetization platform, decentralized cloud computing project and DePIN powerhouse. But now a new era is upon iExec, the Real World Assets one.
What is RWA
Real World Assets (RWA) refers to the tokenization of tangible assets existing in the physical world, that are then brought on chain. These tokens represent tangible or intangible assets from real estate to bonds. This sector intertwines Traditional Finance (TradFi) and Decentralized Finance (DeFi). It is huge in the Traditional Finance industry but doesn’t possess the liquidity strength that Decentralized Finance offers. A combination of both ensures a win-win situation, with the volatility of crypto not affecting its yield and offering investors low-risk to enjoy better yields.
Real World Assets since its tokenization, has adopted the benefits of the blockchain. Aside from the increased market efficiency it offers, transparency and security also come into play. Traditional Finance has its limits but these are tackled with the efficiency blockchain technology offers.
Democratic access to investment opportunities i.e. Decentralized finance, has enabled Real World Assets to become a more inclusive financial ecosystem. Naturally, there are certain pedigrees for those who could access real-world assets in the past but not anymore. To a certain degree, we’re seeing a reduction in the regulatory and legal hurdles which can be traced back to the Blockchain and Real World Assets merger.
How to do Real World Assets work
Real World Assets represent the new age of tangible assets. Assets ranging from bonds, real estate, commodities, and machinery are now more accessible and available. RWAs allow these assets to find a place within the Decentralized Finance (DeFi) ecosystem leading to a vast amount of applications.
The tangible assets represented by RWAs are assets with substantial value and are universally accepted, making the value and ownership of these assets widely acknowledged, easing their usage for global financial operations and transactions. They make up a major percentage of the total global financial value due to them having economic value, being owned by individuals or enterprises and having future economic benefits as investments.
Through the Blockchain and DeFi, the tokenization of these assets is made possible, and represented on various chains, enabling them to be easily purchased, sold, or traded securely on digital platforms. Imagine owning a piece of the Monalisa on the Ethereum chain, or a major real estate item in the Maldives maintaining fractional ownership and rental income respectively. The fusion of traditional finance and blockchain to birth RWAs has led to the enhancement of liquidity, transparency, and accessibility with an overall increment in the experience for buyers and sellers alike.
Crypto RWAs are innovative solutions to the limitations present in traditional finance assets. A major solution is the ability to lower entry barriers. With fractional ownership of these real-world assets being enabled, possibilities have been created for people to purchase tokens that represent a portion of these assets like real estate and art. People who couldn’t access these kinds of assets due to being priced out or capital requirements can now access these markets.
Accessibility is another solution, geographical and regulatory disparities face huge reductions due to blockchain technology. Anyone, anywhere now has the opportunity to engage in the acquisition of these assets. People also become more equipped to enter and exit positions with cryptocurrency exchanges making liquidity enhanced and tailored to the evolving market environment.
iExec and RWAs
iExec, the leading Artificial Intelligence (AI) project, has been classified as a DePIN, and Web3 stronghold in recent times and since the surge of the merge between AI and RWAs, we could equally call them a promising RWA project. This merger offers a strong foot to both ends as the future of both can go beyond what we know.
AI models are one of the fascinating languages of Machine Learning, cumulatively made up of datasets, computing power and resources. These vast amounts of data to make up AI models can be described as assets as they solve real-world use cases, making them more valuable to own. Imagine owning a patent right to the Grok LLM, or in RWA terms, a piece of it but in iExec’s native token RLC. AI models, patent rights etc. are accurately qualified to be called Real World Assets.
iExec has a marketplace powered by blockchain technology and confidential computing to ease the flow of these AI models and assets that generate the RLC token. Running on its iExec sidechain, you could access a piece of an AI model (both CPU and GPU) assets securely (backed by Trusted Execution Environments) and own it in RLC tokens. Imagine owning a piece of its iExec stack, DataProtector, you’d be investing in the iExec stack and also creating Trust in AI as these models become transparent for the public.
Owning these assets is not the only moment to look forward to, iExec offers RWAs enhanced security and fortified user privacy. Transactions can become more protected and identities more secured, a whole new level to acquire these assets from anywhere in the world can be created and carried out seamlessly.
This merger harnessing the power of AI and iExec can unlock and create new possibilities. With each strength complemented and limitation tackled, there’s no room to quantify what to expect. The potential of the financial, RWAs and AI industry is limitless, curating a new era of digitized assets and decentralized finance.
