According to a Binance research report, tokenized real-world assets (RWAs) are expected to be a market worth $16 trillion by 2030. That’s 10% of global GDP, and yet it makes up only a fraction of the total global asset value ($900 Trillion).
Hence, there is a high chance for this market to even grow beyond the $16 trillion mark. This makes RWA tokenization one of the biggest upcoming market opportunities.
But what is RWA tokenization? It is a process of splitting a real asset into smaller units called tokens that exist digitally on the blockchain, where each token represents a fraction of the actual asset. Anything that has real-world value can be tokenized, such as gold, real estate, cars, artwork, intellectual property, bonds, cash, etc.
For example, if an artwork is tokenized into 100 tokens, each token will have a value equivalent to 1% of the artwork. Blockchain enters into the picture due to its immutability. Once the tokens go on-chain, their ownership and supply can be verified.
Fast-forwarding the Adoption
Forward Protocol is at the forefront of this revolution. It is a no-code platform where users can deploy dApps and smart contracts for various use cases, including RWA tokenization, using a simple drag-and-drop interface.
RWA tokenization from scratch requires a high level of technical expertise. The general steps include token specification, choosing a blockchain, coding a smart contract, security auditing, deploying, and minting.
On the other hand, Forward Factory allows non-technical users to tokenize assets within 5 minutes and without writing a single line of code. This gives businesses in various industries an opportunity to participate in this upcoming boom without paying high exorbitant developer fees.
Forward’s Winning Strategy to Dominate the RWA Market
Improving Trust in Tokenized Assets
A critical challenge in tokenizing real-world assets is the prevailing lack of trust, often stemming from human errors in smart contracts. Compared to Web2, the blockchain space is less forgiving of oversights during the development and testing of smart contracts.
Inefficient smart contracts and security vulnerabilities in dApps can lead to higher gas fees and possible cyber attacks, resulting in huge monetary losses. At the same time, follow-up maintenance after deployment and security audits can be very costly and cumbersome as the blockchain is immutable. Due to these hassles, users can be hesitant to tokenize RWAs.
Forward Protocol counters this by cultivating trust through a collaborative community marketplace, which shows transparently the number of people using a template, its various security audit reports, updates frequency, support services, and user reviews and ratings.
This isn’t just data; it’s a trust signal, a collective nod of approval from a community that values reliability and efficiency. This process mirrors the trust-building mechanisms prevalent in Web2 platforms like Google Play Store, where app ratings, number of reviews, and total downloads guide user choices.
ERC2535 Diamond Contracts for On-chain Updates
Forward’s ERC2535 Diamond contracts are another testament to the platform’s winning approach. This allows template developers to release periodic on-chain updates, giving users the flexibility to adapt to new developments akin to updating a WordPress blog. All of this happens on-chain, and every user who deployed a dApp can decide to update or skip.
By simplifying the tokenization of real-world assets, Forward Protocol is effectively democratizing accessibility for everyday users. What sets Forward Protocol apart is its commitment to trustworthiness and ease of use in a burgeoning new industry, which was traditionally perceived as complex and exclusive.