Web3 Popular Science | What is RWA in the encrypted world?

Aug 20, 202458

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RWA stands for Real World Assets, which are tangible assets tokenized using blockchain technology. This allows ownership of real-world assets to be represented by tokens, enabling transactions such as lending, renting, buying, and selling on the blockchain. RWA is important because it bridges real-world assets to the crypto world, providing better liquidity, lower transaction costs, and increased investor confidence and transparency. It is considered a key factor in the blockchain industry's potential growth to trillions of dollars. Examples of RWA include stablecoins like USDT and USDC.

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What is RWA#

RWA stands for "Real World Assets," which refers to real-world assets with actual value 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 RWAs, with stablecoins like USDT and USDC being examples of RWA.

Why do we need RWA#

Blockchain operates independently from 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 trillion-dollar scale.