Chainlink Labs’ Post

🚀 Tokenizing Business Operations (#RBO s) is emerging as a transformative concept that could be more impactful than tokenizing Real World Assets (#RWA s) in certain contexts. This approach not only changes how businesses operate internally but also affects how they interact with the market and their stakeholders. Here’s a detailed look at why RBOs might be considered more important than RWAs from various perspectives. 👉 Efficiency and Adaptability Tokenizing business operations can lead to significant improvements in efficiency. By digitizing and automating workflows through tokens, companies can reduce manual processes, decrease error rates, and shorten the time needed for various business operations. The use of smart contracts in RBOs can automate complex processes such as compliance, payroll, and supply chain logistics, leading to more agile and adaptable business operations. 👉 Employee Engagement and Incentivization Tokenizing operations allows for novel ways to engage and incentivize employees. For instance, tokens can be used as part of a reward system for meeting performance targets or for participation in corporate initiatives. This can lead to improved productivity and morale as employees feel more directly involved in the success of the company. 👉 Innovation and Market Competitiveness RBOs encourage continuous innovation within a company. By integrating tokenization into core business processes, companies can more easily adapt to technological advances and changing market conditions. This ongoing adaptability can provide a significant competitive edge in rapidly evolving industries. 👉 Transparency and Traceability Tokenizing operations enhances transparency and traceability, which are critical in industries such as pharmaceuticals, manufacturing, and food services. Tokens can help track the journey of a product from production to delivery, ensuring compliance with regulations and standards at every step. 👀 Conclusion While RWAs revolutionize asset management and investment, RBOs offer a broader scope by fundamentally transforming internal operations, employee interaction, and market adaptability. The impact of RBOs extends beyond financial transactions to influence the very core of how companies operate and innovate. As businesses continue to evolve in the digital age, the importance of integrating advanced technologies like blockchain into operational frameworks becomes increasingly clear, potentially making RBOs a more critical focus for future developments than RWAs. #RBO #RealBusinessOperations #RWA #RealWorldAssets

This is a great talk by Sergey Nazarov at EthCC this week that really captures what I am also seeing in the industry. 1. More and more assets will be tokenised. i.e. the Real World Asset (RWA) universe will continue to expand. Today, RWA already eclipses DeFi and this trend is likely to continue as more and more debt, private markets, real estate and derivatives move on chain. 2. This will accelerate as the barriers to entry for an institution to issue assets on chain will continue to lower year on year. Selecting a DLT will become, in some sense, equivalent to the selection of a database technology today. It will not be a technically complex or challenging endeavour as the technology stack continues to evolve and mature. The result will be more and more heterogenous networks as different institutions -- whether banks or FMIs -- make different technology decisions based on the nuances of their particular use case or product. This is already visible today if one looks at the various projects of different large commercial, central banks, and supranational organisations. 3. Without interoperability ("bridges") between these "islands", there will be fragmentation which will, for example, prevent access to liquidity as these on-chain assets will not be able to be traded or move across protocols and networks. Interoperability is therefore critical and it is multidimensional and nuanced. For example, it is not just a case of "moving" assets but also considering sophisticated cross-chain collateralisation scenarios or also considering how, when an asset moves, its history, status, and regulatory compliance data moves with it. 4. Ensuring trust in these tokenised assets -- particularly as they traverse technical and regulatory boundaries -- will therefore also be critical. If an asset moves from network A to network B, for example, then compliance related data should move with it as well as key information related to the asset itself. For example, pricing information, risk data, or ensuring there continues to be an immutable link to the underlying physical asset (whether reserves or real estate). This should be cryptographically provable and with a minimised reliance on trusted third parties (which introduce risk and inefficiency). 5. In parallel, there will continue to be a progressive convergence of DeFi and TradFi (or CeFi) worlds. Again, it's already happening now but is likely to accelerate over time, particularly as the challenges of interoperability, trust-minimised computation, and cryptographic proof exchange continues to be resolved. It will, however, be a transition and not a sudden spontaneous convergence. Hence, it is also important to consider interoperability between these two worlds and also the legacy systems that will continue to underpin much of our financial infrastructure.

Way bigger than Crypto ... potentially. The key is being able to transform RWA in a compliant, trusted manner through not only trusted leaders such as Chainlink but all the interconnect chains that are too often living in the wild west - (Those guys are doing it; so it must be ok.) How do we get there faster? Bring trust and bridge permissioned and permissionless blockchains together, as the jurisdictional regulations evolve. #blockchain #tokenization #korechain #regA+ #RWA

#Blockchain technology extends far beyond #cryptocurrency applications. At NFTCLT, we've consistently highlighted the transformative potential of linking digital authentication to tangible assets. Our focus has always been on the substantive, real-world applications of blockchain. This is why we don't emphasize trading cryptocurrencies, speculating on meme NFTs, or engaging in the more superficial, profit-driven aspects of the crypto space. Instead, we explore how blockchain can revolutionize asset management, supply chain transparency, and digital identity verification while still ensuring privacy. These applications have the power to create lasting value and drive meaningful change across industries and how interact with each other across the world. What are your thoughts on blockchain's potential beyond crypto? How do you see it reshaping traditional business models and processes? #Blockchain #DigitalTransformation #AssetAuthentication #NFTBeyondArt

I keep seeing and hearing people telling that either #DeFi #GameFi #DePIN #RWA tokenization or #AI is the hottest narrative. I am here to tell you that all are hot narratives and all sub-industries of those narratives are going through major transformation in how they are being built, used and monetized. The difference maker is the total possible value they could transform, and as Sergey Nazarov is pointing out veruly clearly, the trillions are under the #RWA. #DeFi is a way of doing transactions better, more efficient and in a fair way. #GameFi is offering gamers experiences never seen before. #DePIN is revolutionizing the way technological infrastructures work and communicate. #AI is doing human jobs at higher levels. But the total disrupted value lies into the tokenization of #RWA through #blockchain and #DLT in general. It's all about the magnitude, not about A or B. It's about A and B and C, going even beyond Z in all possible (and even sometimes impossible) combinations. If I would have one idea to end up this post with, it would be "perspective". Zoom out, zoom in, and question everything before having a final opinion on something. It will save you a lot of pain and headaches and it will help you live yoir life your life based on facts and truth rather than illusion and manipulation. Have a sunny day friends! ☀️ P.S I even forgot it's Friday. When you do what you love, you work like you are in a continuous Monday but you feel like you're in a continuous Friday. 🔥 Cheers to that! 💯

RWA tokenization is next rave: for sure

RWAs in 2024 are where Smart Contracts and DAOs were in 2020. (Edit: just in terms of the narratives 😅) Let me explain. I differentiate the market into 2 parts - the projects which are there to stay, the OGs; and then there are those which earn the most in each bullrun benefitting off of narratives which caught light. In 2017 we needed bitcoin alternatives which solved slightly different purposes or tokens providing utility or privacy hence monero,IOTA, XEM, XLM, EOS got a better spot in the market cap compared to exchanges like bitconnect or BNB which were the most crucial back then In the 2021 bull run we saw metaverse tokens, memecoins and wannabe ethereum killers capturing the largest chunks of market capital. Both of these narratives were less than an year old old before the btc halving. This year, I’m extremely glad to see most projects working towards bridging the gap between real world assets and tokens. In my humble opinion; Chainlink, Avalanche and Solana might give birth to so many projects which deploy the true use of crypto. The 2025 bull run we’re about to see hopefully brings out the reason why crypto was created in the first place.

Chainlink is powering the verifiable web, having enabled over $12 trillion in transaction value through access to real-world data, offchain computation, and secure cross-chain #interoperability across any #blockchain. It supports verifiable applications and high-integrity markets for #banking, #DeFi, global trade, #gaming, and other sectors. By empowering the tokenization of real-world assets #RWA, Chainlink has already surpassed DeFi and is poised to revolutionize cryptocurrency values as more RWA become tokenized. Chainlink solves the #Oracle problem—the inability of blockchains to access external data—by bridging the blockchain (onchain) and the outside world (offchain) through its Cross-Chain Interoperability Protocol (#CCIP), seamlessly connecting multiple blockchain networks. This is crucial for obtaining clean, reliable data for #DApps, preventing issues like #flash_loan attacks and network congestion, thus ensuring trusted DApps that we all need. Watch Sergey Nazarov’s co-founder of Chainlink keynote from EthCC

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