Blockchain is increasingly influencing record-keeping and asset tokenization, unveiling new opportunities for the industry and Web3 projects.
Blockchain Record-Keeping
One of the earliest promised yet least-fulfilled use cases of blockchain was replacing legacy databases. Over a decade later, blockchain databases are caught between the need for transparency and the protection of private information. Blockchain-based data management can enhance transparency in fund management without revealing personal information. Citizens and journalists can track the progress of complaints submitted to authorities without disclosing sensitive data.
Real-World Asset Tokenization
The tokenization of real-world assets (RWAs) is a prominent use case for blockchain. Tokenization refers to the fractional ownership of high-value assets like real estate or engineering equipment, increasing liquidity. This secures ownership and transaction records on the blockchain, minimizing intermediaries in processes such as provenance verification. Tokenization is expanding into private credits, addressing investor concerns of liquidity and efficiency.
The Importance of Experiments for Trust in Web3
The Web3 industry faces a trust deficit. Many projects and experiments discussed in the article are crucial for demonstrating the tangible value needed to build trust in Web3. Thanks to advanced cryptographic techniques, such as zkFHE, Web3 data no longer has to compromise between security and privacy. These innovations set the stage for tokenization of assets and the use of data in AI model training.
Proven use cases should become a prerequisite for investment by professionals. Tackling fundamental issues positions Web3 as a significant force in building a better version of Web2.
