Korea IT Times celebrates its 20th anniversary with insightful columns from local and international thought leaders. Following contributions from experts from all walks of life in July, August, and September, we are pleased to present our October contributors.
- Jong-Shik Kim, Chair Professor: Brain-Computer Interface (BCI)
- Byoung Min Im, Columnist: In the Age of AI, the Best Language Mankind Can Dream of Is Hangul
- Hyoung Joong Kim, Chairman of the Korean Society of Fintech and Chair Professor of Digital Financial Management at Hoseo University: Movement to Establish a Desirable Virtual Asset Protection Foundation
- Piyush Gupta, Founder and CEO of Polytrade: RWA’s IRL: The Power of Tokenization to Disrupt Legacy Industries
- Cho, Sung Kap, Chair Professor at Anyang University: Reviewing the presentations of the global top 10 IT companies
- Miguel Buffara, Lead Financial Engineer at RACE: New Opportunities Unlocked by Tokenizing Luxury Goods for HNWIs in Asia
- Dana Cohen, Product Marketing Manager at Sony Semiconductor Israel: Optimizing Trackers with LTE-M: Connectivity Advantages Explained
- Choe Chong-dae, Columnist: Celebrating Thai Heritage and Friendship: The Sawasdee Seoul 2024
By Piyush Gupta, Founder & CEO of Polytrade.
As inflation rises and economic instability becomes more pronounced, the traditional financial industry is under increasing strain. Many individuals find themselves struggling to make ends meet, often without access to viable wealth-building opportunities. In this challenging environment, we must explore alternative solutions that empower individuals, families, and businesses to thrive. Real world asset (RWA) tokenization – a process which converts physical assets and commodities into digital tokens – has emerged as a viable answer, reshaping global industries and democratizing wealth access. With on-chain RWAs surpassing $12 billion USD in September 2024, trust and urgency are clearly building. The pressing question is: Can RWAs unlock new avenues for investment, efficiency, and opportunity amid today’s uncertainty?
Enhancing Liquidity and Democratizing Wealth
One of the primary challenges in traditional investments is accessibility. High-value assets like property or fine art often require substantial capital, effectively locking many out of wealth creation. Tokenization dismantles these barriers by allowing for fractional ownership, enabling investment in part of an asset rather than requiring the full upfront capital. For instance, an investor could own a fraction of a Van Gogh painting or a portion of a mountain-top chateau, making high-value investments more attainable. This shift enhances liquidity and disrupts long-standing power structures, creating a more equitable landscape for wealth generation.
A New Era of Transparency and Security
In addition to barriers from the traditional finance industry, legacy industries often face lengthy processes. Though designed to ensure security and accountability, these practices can significantly hinder efficiency. Blockchain technology offers a powerful alternative by providing immutable transaction records that enhance trust through transparency. For example, tokenized RWAs enable real-time tracking of ownership and provenance, giving investors greater confidence in their holdings. The automation provided by smart contracts further streamlines operations, reducing the need for intermediaries and cutting transaction costs. In supply chain management, where processes are typically slow, blockchain facilitates real-time tracking to optimize logistics, ensuring all stakeholders have immediate access to accurate data. This enhances transparency, improves efficiency, and reduces the risk of errors or fraud.
Breaking Down Silos: The Rise of Interoperability
A major challenge across industries is the lack of alignment between systems, which hinders innovation and reduces operational efficiency. By utilizing blockchain and tokenization, different industries can create interoperable systems that manage intellectual property rights more effectively. For instance, a music streaming service could seamlessly connect with a blockchain platform that tracks copyright ownership, allowing for instant royalty payments to artists whenever their music is played. Similarly, a film production company could use the same technology to ensure that all contributors—from actors to screenwriters—are compensated fairly and transparently, fostering collaboration across various sectors. This integration not only streamlines royalty distribution but also enhances the overall efficiency of managing IP rights, driving growth and creating a more equitable landscape for creators.
RWAs IRL – More Than a Trend, a Paradigm Shift
RWAs are no longer a concept of the future — they are the engine driving profound changes in how industries operate today. As tokenization unlocks new opportunities for fractional ownership, liquidity, and transparency, it transforms legacy systems that were once rigid and inaccessible. Moreover, tokenization has the potential to democratize wealth-building opportunities, granting individuals and underserved markets unprecedented access to high-value assets. In a world facing increasing economic uncertainty, RWAs provide a path forward – an invitation to disrupt traditional power structures, reimagine wealth creation, and unlock new avenues for growth, innovation, and inclusion. The time to embrace tokenization is now – let’s seize this opportunity together.
