From December 31, 2024 to January 1, 2025, Chafang Blockchain held the 2024 Web3.0 New Year's Eve Sharing & New Year's Gift with the theme of "Going to the New Era of Web3.0". Many experts and big names in the Web3.0 field reviewed 2024 and looked forward to 2025 in the Web3.0 field, contributing their insights, which was very colorful. Zhang Feng, partner of Wanshang Tianqin Law Firm, was invited to participate and shared his views on the integration of data assets, encrypted assets and RWA and its market opportunities.
1. Data assets, encrypted assets and RWA tend to converge
The convergence of data assets, encrypted assets and RWA refers to the integration of the three practices of playing the role of data elements, decentralizing encrypted assets and issuing and trading RWA. In essence, it can be considered as the organic combination and innovative application of data resources owned by enterprises or individuals, decentralized encrypted assets based on cryptographic principles, and various assets in the real world through blockchain and other technologies.
Asset digitization
The convergence of data assets, encrypted assets and RWA is also the process of asset digitization and digital assetization. RWA is the integration of digital assets and traditional or real assets from the perspective of the financial industry, encrypted assets are the creation of new assets and new value from the perspective of technology geeks using encryption technology, and data assets are the continuous mining of data element resources from the perspective of industry needs to optimize business processes, reduce costs and increase efficiency, and innovate value circulation models. And these three are finally integrated into real and specific application business scenarios.
RWA converts real-world assets into encrypted assets on the blockchain, that is, the so-called real-world assets include traditional financial assets such as stocks, bonds, funds, accounts receivable, etc., and the relevant rights of physical assets such as real estate, artworks, precious metals, etc., so that these assets can be traded and managed in the digital world, representing the process of digitization of traditional assets. For RWA, its form is encrypted assets, but its value is carried by the role of data elements.
Playing the role of data elements also includes quantifying and tokenizing the value of data assets, that is, the data assets of enterprises or individuals, such as customer data, business data, etc., are valued and quantified through specific technologies and methods, and then their value is mapped to the corresponding digital assets, so that the value of data assets can be reflected and traded in the blockchain network. In essence, valuable RWA and encrypted assets are both data assets.
As a technical tool, encrypted assets are a good medium for transaction and value bearing. Crypto assets such as Bitcoin, Ethereum and other digital currencies, as well as various tokens, NFTs, etc., can be used as a medium for data assets and RWA digital token transactions during the integration process, and can also be used as a form of value carrier, which can be converted and circulated with data assets and RWA. Any valuable data assets and crypto assets are real-world assets, namely RWA, but their forms of expression may be traditional or innovative and never seen before.
Technology Integration and Innovation
Blockchain technology is the core technical support for achieving integration. Utilizing the decentralized, tamper-proof and traceable characteristics of blockchain, a credible, secure and efficient technical platform is provided for the integration of data assets, crypto assets and RWA, based on which the ownership, transaction records, value changes and other information of various assets can be accurately recorded and traced, ensuring the authenticity and security of assets.
Smart contracts are the key to the intelligent management of assets. Through smart contract technology, the automated issuance, trading and management of data assets, encrypted assets and RWA transactions can be realized. When certain conditions are met, smart contracts can automatically execute the authorized use of data assets, the distribution of income, and the issuance, trading and redemption of RWA digital tokens, which improves transaction efficiency and reduces the risk of human operation, thereby enhancing trust and creating value.
Value integration and enhancement
The analysis and mining of data assets can provide important decision-making basis for the transactions of encrypted assets and RWA. The process of digital development is essentially a process of continuous mining of data value. For example, through the analysis of market data, user data, etc., investors can better understand market trends and investment opportunities, so as to more accurately invest in encrypted assets and trade RWA digital tokens.
The characteristics of high liquidity and globalized transactions of encrypted assets can bring better liquidity and transaction efficiency to data assets and RWA. Data assets and RWA can more easily achieve global transactions and circulation with the help of crypto asset trading platforms and markets, attracting more investors to participate.
RWA introduces real-world assets into the field of digital assets, expands the application scenarios and value realization methods of assets, and promotes industrial digitization and digital industrialization. Data assets and crypto assets can be combined with traditional financial assets and physical assets represented by RWA to create more diversified financial products and services, meet the needs of different investors, and maximize asset value.
Eco-integration and synergy
The integration of data assets, crypto assets and RWA helps to build a unified digital asset ecosystem, in which various types of assets are interconnected and interact with each other to form a complete value network. Different types of asset owners, investors, developers, service providers, etc. can interact and cooperate in this ecosystem to jointly promote the development of the digital asset market.
During the integration process, enterprises and institutions in different fields such as finance, technology, and data need to carry out cross-field collaborative innovation. Financial institutions can cooperate with technology companies to innovate financial products and services by leveraging the advantages of blockchain technology and data assets; data companies can cooperate with crypto asset platforms to tokenize and trade data assets, etc., to achieve mutual benefit and win-win results for all parties.
Key points and key points
To determine whether a project can issue RWA, there are many issues to consider, including the quality of the asset itself, legal supervision, technical and infrastructure support, market and investor demand, etc., but under specific technical and market conditions, the most critical thing is the profitability of the asset itself and the market's acceptance, that is, the confirmation of potential investors.
For the assets to be issued RWA, first of all, it must be ensured that they are real. For example, if it is a real estate project, there needs to be a clear property certificate to prove that the ownership of the property is clear and there is no property rights dispute. For financial assets, such as bonds, legal and compliant issuance documents and regulatory approval are required. In addition, the source of the assets must be legal. For example, artworks cannot be obtained through illegal means such as theft or smuggling. Before issuing RWA, strict due diligence on the source of the assets is required, including reviewing relevant transaction records and ownership transfer documents.
The quality and stability of the assets ensure reliable and stable returns. If it is a physical asset, such as real estate, its physical condition needs to be assessed, including whether the building structure is safe and whether the facilities are complete. For financial assets such as corporate accounts receivable, factors such as the possibility of recovering the accounts receivable and the age of the accounts need to be assessed. The value stability of the assets is also critical. The equity value of some emerging technology companies may fluctuate greatly. When considering issuing them as RWA, it is necessary to carefully assess their risk tolerance and market expectations.
During the specific issuance, the docking of potential investors is a critical link. Different investors have different needs and risk preferences. Conservative investors may prefer to invest in RWA with stable returns, such as tokenized assets of high-quality bonds. Risk-seeking investors may be more interested in RWA with high risk and high returns, such as tokenized assets of equity in emerging industries. Projects need to design RWA products according to the needs of potential investors. For the issuance of RWA for data assets, which many people are very concerned about, a very important factor is whether the data assets have clear ownership, legal sources, stable quality, and whether they can generate stable cash flow. Many data service products can generate cash flow but are not stable. The market may be more cautious about issuing RWA.
Challenges and risks
Related regulatory compliance risks also need to be managed in integration. Different countries and regions have different regulatory policies on data assets, crypto assets and RWA, which may lead to compliance issues. The legal status of crypto assets in some regions is still unclear, and the tokenization and trading of RWA may involve securities regulations. For different projects, a sound compliance framework needs to be established to ensure that the integration projects comply with local laws and regulations.
Blockchain technology itself still has problems such as scalability, performance, and smart contract vulnerabilities. These problems need to be controlled during integration so that they do not affect the integration effect and security. Blockchain network congestion may lead to transaction delays and increased costs, and smart contract vulnerabilities may be exploited by hackers, resulting in asset losses.
The price fluctuations in the crypto asset market are large, which on the one hand increases the speculation of the market, but may also affect the product value and investor returns after the integration with data assets and RWA. Therefore, it is necessary to adapt the investment value and cycle management to the characteristics of crypto assets.
In addition, during the integration process, the security and privacy protection of data assets are crucial. If data is leaked or abused, it may cause huge losses to enterprises and individuals. Effective data security measures, such as encryption and access control, need to be taken to protect the security and privacy of data.
2. Data assets, crypto assets and RWA: providing opportunities for each other in integration
Data assets, crypto assets and RWA will provide market opportunities for each other in the integration of specific business scenarios. The difficulty of data assetization lies in the quantification of value, and crypto assets and RWA provide a good carrier; the key point of crypto assets is value bearing, and data assets and RWA provide sufficient value support; the key to RWA is to provide trust for supervision, and data assets and encryption technology have ready-made solutions. It can be said that the integration of the three provides new opportunities for their respective development.
Financial field
RWA digitization of traditional financial assets such as stocks, bonds, and real estate, and combined with encrypted assets, create more liquid and innovative financial products, such as RWA digital bonds, digital tokens of real estate investment trusts (REITs), etc., to meet the diverse investment needs of investors.
Using the decentralized, tamper-proof and traceable characteristics of blockchain technology, the rapid settlement and liquidation of financial transactions can be achieved, and transaction costs and risks can be reduced. For example, financial transactions can be automatically executed through smart contracts, reducing manual intervention and intermediary links, and improving transaction efficiency and accuracy.
Data assets can provide financial institutions with richer and more accurate customer data and market information, helping financial institutions to make more accurate risk assessments and investment decisions. For example, using big data to analyze customers' credit risks and investment preferences, etc., to provide investors with personalized investment advice and risk management solutions. And these integrations may be able to more effectively realize the flow and realization of such assets.
Supply Chain
Use the immutable and traceable characteristics of blockchain to build a supply chain traceability system to ensure product quality and safety. Consumers can obtain information about the entire process of product production, processing, transportation, etc. by scanning product QR codes, etc., to enhance consumer trust in products. At the same time, for products with quality problems, the source of the problem can be quickly traced back and effective measures can be taken to deal with it. Blockchain technology can be used to record various data assets in the supply chain, such as order data, logistics data, quality data, etc., to achieve data sharing and collaboration among all parties involved in the supply chain, and improve the collaborative efficiency and response speed of the supply chain. All parties can obtain key information on the supply chain in real time, adjust production plans and logistics distribution in a timely manner, and reduce inventory costs and out-of-stock risks.
Blockchain technology can ensure the transparency and traceability of logistics, information flow and capital flow in the supply chain, and reduce the risks of supply chain finance. For example, physical assets in the supply chain can be further digitized through RWA, such as raw materials, inventory, etc., and supply chain finance can be innovated through encrypted assets. For example, suppliers can convert accounts receivable into RWA digital assets and finance in the form of encrypted assets to improve capital turnover efficiency and reduce financing costs.
Digital Copyright Field
Blockchain technology can provide more effective protection and rights protection for digital copyrights. By recording the creation, release, and transaction information of digital works on the blockchain, decentralized confirmation and storage of digital copyrights can be achieved to ensure the uniqueness and immutability of copyrights. Once infringement occurs, creators can quickly protect their rights through the evidence information on the blockchain, reducing the cost and difficulty of rights protection.
Digital copyrights can be confirmed and evaluated as data assets, and then the transaction and financing of digital copyrights can be achieved through the combination of RWA and encrypted assets. Creators can combine their digital works with NFTs and digitize RWA, and issue corresponding crypto assets. Investors can purchase these crypto assets to obtain the copyright income rights of digital works, providing new financing channels and business models for the digital copyright industry.
Through the integration of RWA and crypto assets, digital copyrights can be more easily traded and circulated globally, expanding the market space and audience of digital copyrights. For example, global investors and consumers can purchase and enjoy digital works from all over the world through crypto asset trading platforms, promoting the international development of the digital copyright industry.
Other fields
Represented by the new energy industry, new energy assets such as photovoltaic power stations and wind farms can be digitized through RWA, and financing and trading can be achieved through crypto assets. According to public information, GCL Energy and Ant Digital Technology have completed an RWA project based on photovoltaic physical assets, with a financing amount of more than 200 million yuan, solving the problems of difficult financing of clean energy and poor liquidity of funds.
Achieving the assetization of agricultural data, such as putting the data of the entire process of agricultural product planting, production, and sales on the chain to become a tradable asset, not only creates additional income for enterprises, but also solves the problem of information islands in traditional agriculture, helps to achieve precision marketing, brand premium and traceability services, and greatly enhances market competitiveness and consumer trust.
For cultural heritage sites or historical buildings, they can be digitized and combined with RWA and encrypted assets to create a virtual visit experience, and sold to global tourists in the form of non-fungible tokens (NFTs), creating new sources of income while protecting precious cultural heritage and promoting the development of cultural tourism.
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