. @BlackRock has entered the TOKENIZATION building.
Let's try to understand what they are actually saying here.
1. Tokenization is a wrapper: Simply put, it's the digital representation of a real asset. To translate a real asset into digital form, you need data. Lots of data.
This data can then be programmed, automated, used, traded, settled across many chains.
2. Adoption is growing. (still early)
The biggest piece of the puzzle today to achieve that goal is INTEROPERABILITY.
Simply put: the ability to work between chains, as chains are designed to be digital islands.
3. The risks, and the benefits: The benefits are simple.
Automation, 24/7 markets, instant transactions, transparency and access.
The risks: Traditional risks stay the same, but at the moment, regulatory inefficiency is slowing down progress, and infrastructure as of today is still lacking on many chains, and some interoperability layers still have major issues with security, like @LayerZero_Core and @wormhole .
There is however one protocol that effectively has the best track record on both the data side and security side as it has never had a faillure before. That is of course $LINK
Let's try to understand what they are actually saying here.
1. Tokenization is a wrapper: Simply put, it's the digital representation of a real asset. To translate a real asset into digital form, you need data. Lots of data.
This data can then be programmed, automated, used, traded, settled across many chains.
2. Adoption is growing. (still early)
The biggest piece of the puzzle today to achieve that goal is INTEROPERABILITY.
Simply put: the ability to work between chains, as chains are designed to be digital islands.
3. The risks, and the benefits: The benefits are simple.
Automation, 24/7 markets, instant transactions, transparency and access.
The risks: Traditional risks stay the same, but at the moment, regulatory inefficiency is slowing down progress, and infrastructure as of today is still lacking on many chains, and some interoperability layers still have major issues with security, like @LayerZero_Core and @wormhole .
There is however one protocol that effectively has the best track record on both the data side and security side as it has never had a faillure before. That is of course $LINK
