Real world Assets on the BlockChain | Get Real world Assets on the BlockChain - Assignment

DeFi 201
#1

For the overall ecosystem growth, it is important that more users start to understand, trust, and use protocols that interface real-world assets (RWA) with blockchain. Let’s make this the new normal :wink: I assign all to find interesting new protocols that interact with the real world and show proof of purchase in the forum thread. For now, you can use https://opensea.io/assets/wiv but soon many more will follow.

Also, there is an ongoing debate if we need to be whitelisted KYC/AML embed in a token/protocol to make Real-World Assets on the BlockChain work. what do you think?
In my opinion, we should strive towards a system where KYC/AML is not needed since I see Access to an open and privacy preserve financial system is a basic human right
https://www.openmoneyinitiative.org/

If you find any new protocols that bring real-world assets to the blockchain lets list them below and discuss there technical architecture of how they bridge CeFi/DeFi.

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#2

I completely agree with the statement that “we should strive towards a system where KYC/AML is not needed” which is why I am very interested in anything ZK proof related.

The challenge is how can a loan be made to an entity that does not have the collateral to stake w/out KYC? Perhaps that’s okay. Leave those loans to the fiat world? IDK.

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#3

I also agree, real world assets are yours and should not require KYC. If I want to token-ize my classic car and divide the value of the car into fractions to sell off to investors, I should be able to do so without a government in my business.

I don’t currently have any real world assets, but I love the idea of buying a fraction of a piece of art. Right now I am focused on digital gaming assets with Axie Infinity and League of Kingdoms. I love the play to earn concept and the idea of owning a piece of the game that I can use to gain returns from is fascinating.

My wife is an artist, and I might create a token-ized version of her artwork and put it up for sale on open sea. I just need to learn how to do it first.

Dustin

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#4

Does your wife also pains Digitally? Because if yes and you guys tight on cash, you definetly can look into POD (Print on Demand), it’s not so related to the blockchain or defi (Atleast for now lol) but check it out :smiley:

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#5

Will do! Thanks Staniis!

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#6

I actually bought 0.64 SOCKS! :smiley:

Finally i can leave the house lol

Hmm what if KYC is optional, It kinda can give an edge for those who do decide to use it.

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#7

KYC in a token? No. What should be done instead is a KYC token and then have a connector in the asset token that would accept binding to KYC token.
That way someone could have asset binded to KYC and if someone desires it for any reason there would most certainly be use cases for that.
I think that would be a great and elegant way to bridge CeFi and DeFi.

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#8

Yeas interesting question.
I think it could be done with group pooled reputation.

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#9

A crazy idea could be to create a bridge between the financial assets that the person has in CeFi through Tokenization of their value. As REN does, passing BTC to Ethereum with RenBTC, and so the KYC that the bank has already in its DB is used. In the bank or financial entity I could say “I want to place these assets worth for $ X in the Ethereum network” and then use this Token as collateral in Compound, Maker, Aave or any DeFi platform.

Or have a second private key given by the bank that has the KYC information and with this sign the transactions in the blockchain as a multi-sign

multisig-transaction
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#10

The current KYC and AML system clearly don’t work with about 2 billion people not included. A system that only 75% of the world can you seem pretty bad to me.

Zero knowledge identity is interesting idea.

Currently hiding previous transactions on ETH seems far from ideal. I don’t think mass adoption can happen with everyone exposes exactly what their pay is how often etc. DeFi is amazing way getting better by the day. Anyone have solutions to allow privacy without spending lots in fees or risking consensus of transactions?

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#11

Went and did my homework although it turned a bit anticlimactic :sweat_smile:. I ended up buying a Cryptokitty (yes, they’re on Opensea too! ), since I couldn’t find anything closer to “real value” on the platform. I don’t intend to disrespect artists, but i’m not as insane yet to buy a GIF.

On the WIV topic, according to their site:

Can I get the wine delivered?

Not yet. The assets will be securely stored in a professional warehouse in our custody. We are looking [it], but we need to ensure that the value of the wine is protected. So in due time, you will be able to drink up your token, but for now, look on your wine as an investment asset that is being protected in a vault.

I agree nevertheless that this is a fantastic use-case to bring a real-world asset on chain. At the moment without a due date on when delivery is available, this is nothing different than an “illiquid derivative” (pardon the pun :sweat_smile:), another virtual asset.

On the other hand, I did some learning out if this exploration process!

ERC-1155 Multi Token Standard: Essentially lets you bundle multiple assets of different types into one. I think bundles have become an important economy driver (Humblebundle, etc.) and is nice to have such tool available on Ethereum (and Defi!)

I was talking to a comic artist, and he mentioned the struggle of monetising his content. Physical products don’t give him much return after intermediary costs, and (according to him) there is way way less demand for the virtual content. While I see this more of an adoption and cultural problem, it is difficult to convince them to start creating assets and publish on chain, since Ethereum itself has such high fees (if purchase is small amount).

With bundles, it could be attractive to creators, so that they can sell bundled content for low fees? Sorry if this is a bit out of the DeFi topic, although, all we need is a way to include it as a building block :smile:. Royalty management teams maybe?

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#12

KYC is required by companies since the % of litigation nowadays has become high, and they want to protect themselves from legal issues. Since DeFi should be linked to automation and minimize the need of trust should not generally speaking need any KYC. Anyway the tokenizing process may require KYC in some way, expecially for borrowing. For example I may tokenize my car and get a borrow on DeFi for it, but who will confiscate it if I do not honour my debts? So some kind of interface with juridical real world is needed to expand the basis of DeFi, otherwise it may remain only inside crypto currency world and have a limited impact on real world.

#13

Found this online store where you can buy flights, watches etc. with crypto:

No to CYK, no to 3rd party. Love Uniswap and decentralized DAP`s and crypto. Stop the middle men!

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#14

Love this idea man :smiley:
Buy the artists time tokens then burn them for work if needed.
If the artist is really good you tokens will go up in value.

I heard a big wave off real world assets is coming to the Blockchain soon :wink:

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#15

My issue with real-world assets is that eventually will need a third party to trust. How the h. do you know that the bottle of wine is even real? Could you recieve it at home? There’s some insurance if the real asset is destroyed? …So, I’m still not convinced.

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#16

Trust is a big asset … and if trust seems broken token value will thank …
Trust will be staked and if they are not honest they will lose $$$

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#17

I convinced my dad to buy some real state on RealT, he thought that was amazing and that he will probably keep an eye on new listings on the marketplace. As soon as I can buy some, I will definitely get a bunch of different real state.

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#18

Amazing man :slight_smile:
The team is strong and I think they will pull it off still lot of legal red tape they have to overcome :confused:

#19

I’ve looked into Wiv and RealT but with Wiv I can’t work out which of the wines have a better chance of flipping well compared to the other wines in the list. With RealT it seems like a fairly safe bet unless there’s a real estate crash in the US in which case I can imagine rental income might suffer a bit. I’m not sure if it’s worth locking up capital in there for <15% per annum compared to other opportunities in the space at the moment. I also looked on theart.exchange but didn’t feel I knew enough about the assets to make a bid on their futures contracts.

The other assets on Opensea seem to be digital assets but it would be great to see more real world stuff on there. I’m still hunting around for other real world tokenised assets I can bid on :eyes:.

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#20

I bought RealT token and own piece of tokenized real estate.

RealT
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RealT_2
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However it is still centralized operation. Also it is only profit sharing not the ownership. Are there any new solution aiming at these two areas?

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