The emergence of Web3 and tokenization of real-world assets (RWAs) is set to transform the economic landscape by unlocking a computable economy. This shift is expected to break free from antiquated systems and usher in significant wealth creation by embracing a new economic order.
Historically, each technological breakthrough, from the agricultural to the industrial and digital revolutions, has opened up new wealth opportunities. However, these systems have limitations, and the current digital economy faces challenges in sustainability and inclusivity. This calls for an upgrade, which Web3 and the tokenization of RWAs can potentially offer. Tokenization, especially of luxury goods like high-value jewelry, facilitates the creation of a more inclusive and computable economy by introducing new forms of ownership and broader access to the luxury market.
Institutions that facilitate social coordination play a crucial role in this technological progress. Such advancement in institutions has, in the past, led to significant leaps, such as the development of written language and the establishment of universal time. The blockchain and Web3 technologies are seen as the next significant leap, promising enhanced economic coordination by eliminating intermediaries and ensuring trust through verifiable transactions.
In contemporary economies, complex systems face limits due to slow, costly, and unreliable intermediation. Blockchain technology can redefine these parameters by enforcing hard property rights and automating commitments, leading to immutable, verifiable transactions. This change aims to create a more efficient, trustless economy.
A major challenge remains in integrating off-chain RWAs into the crypto-economy while maintaining dependable, computable features akin to native on-chain assets. Solving the physical asset oracle problem is crucial, as the current tokenization protocols still rely on IOUs, which can be unreliable.
The fashion and luxury sectors are early adopters of this technological transformation. Facing a significant slowdown due to economic uncertainties, rising prices, and a shift in consumer preferences toward experiences, luxury brands are tapping into fractional ownership of ultra-luxury items. This model enables a broader audience to participate in luxury markets, providing brands a direct route to global audiences.
The computable economy promises to extend beyond individual wealth generation to address broader existential challenges. The tokenization of RWAs is anticipated to form the backbone of future economic growth, potentially transferring trillions of dollars of value into the crypto space. This new economic order, with its complexities, holds the potential for remarkable human achievements and could redefine global sustainability and our future as a species.
