Core Insights - The article discusses the significance of Real World Asset Tokenization (RWA) in enhancing the efficiency, transparency, and accessibility of asset circulation in the digital economy, facilitated by blockchain technology [1]. Group 1: Definition and Mechanism - Real World Assets (RWA) are defined as physical assets with clear economic value, typically held or managed by legal entities, including real estate, company equity, bonds, and intellectual property [3]. - Tokenization refers to the process of representing ownership or rights to these assets in the form of digital tokens using blockchain technology, which operates on public or consortium blockchains through smart contracts [3]. Group 2: Blockchain's Core Capabilities in RWA - **Asset Digitization and Verification**: Blockchain enables the recording of asset-related information on an immutable distributed ledger, ensuring ownership verification and transparency [6]. - **Increased Liquidity and Trading Efficiency**: Tokenization allows assets to be divided into smaller units, enhancing liquidity and enabling broader participation in investments [8][9]. - **Reduced Transaction Costs and Intermediary Dependence**: Blockchain minimizes reliance on intermediaries by automating transactions through smart contracts, thus lowering costs and streamlining processes [10][11]. - **Global Accessibility and 24/7 Market**: Tokenized assets can be traded globally without time constraints, expanding the audience and trading hours for traditional assets [12]. - **Transparency and Traceability**: All token transactions are recorded on the blockchain, allowing for verification of asset history and enhancing trust [13]. Group 3: Typical Applications of RWA Tokenization - **Real Estate Tokenization**: Commercial properties can be tokenized into multiple shares for global investors, allowing for rental income participation [15]. - **Bonds and Fixed Income Products**: Tokenization can improve issuance efficiency and reduce financing costs for traditional bonds [15]. - **Supply Chain Finance and Receivables**: Companies can tokenize receivables for quicker financing and improved cash flow [15]. - **Art and Collectibles**: High-value artworks can be tokenized as NFTs, facilitating ownership division and liquidity [15]. - **Infrastructure and Public Assets**: Tokenization can attract social capital for public assets like toll roads and utility revenue rights [15]. Group 4: Future Outlook - The growth of RWA is attributed to the maturation of blockchain technology, the demand from traditional finance, and the development of regulatory frameworks [17]. - Challenges remain in technology (e.g., oracle security, cross-chain liquidity), regulation (e.g., varying global standards), and market integrity (e.g., preventing fraudulent RWA projects) [17].