Opinion Realworld assets must have practical uses
Disclaimer: The opinions and perspectives expressed in this article are the personal views of the author and do not necessarily reflect the opinions and perspectives of the editorial team at crypto.news.
In discussions and social media polls, there is a prevailing belief that “real-world assets” will be the driving force behind the next surge in cryptocurrency prices. While I agree with this notion, it is essential to consider a crucial aspect. Historically, assets have primarily been used for speculation, lacking significant practical applications. To achieve widespread acceptance, we must transition from speculative investments to creating tangible utility.
Let’s shift our focus towards real-world assets rather than solely fixating on the price of Bitcoin. Enhancing utility is key to increasing user adoption. When individuals experience the benefits of tokens in their daily lives, they will recognize them as essential tools. Therefore, if the upcoming bullish market is influenced by the tokenization of Real World Assets, we must also emphasize Real World Utility.
Moving beyond decentralized applications (dApps) to self-referential tokens is crucial. While dApps leverage decentralized technologies in their backend, the emphasis remains on the application itself rather than the token. In a dApp-centric environment, the application serves as the utility, overshadowing the tokens. To truly maximize real-world utility, we need to embed utility within the tokens themselves. A simple wallet should suffice, with the tokens carrying all necessary utility. The token should function as a dApp in its own right, providing utility wherever it is used.
The token should serve as a direct channel of communication between the issuer and the owner, offering price information and details about the underlying assets. Seamlessly connecting to a wallet, the token should provide a complete user experience without requiring an additional dApp. By incorporating these elements, the token’s value increases significantly through self-referential functionality.
Moreover, it is vital to consider off-chain utility in addition to on-chain capabilities. While blockchains excel at certain functions such as establishing ownership and user rights, they may not be ideal for all scenarios due to speed, public nature, and immutability. By leveraging both on-chain and off-chain logic, token utilities can be managed efficiently akin to traditional websites. This approach maintains data privacy and ensures experiences are delivered with the speed of web2, unlocking a myriad of use cases that on-chain solutions alone cannot address.
For instance, the creation of the Smart Cat game demonstrates the integration of interactive applications with visual interfaces. To accomplish this effectively, a combination of on-chain and off-chain logic is necessary. On-chain logic manages ownership, while off-chain logic handles the game’s frontend operations, guaranteeing a seamless and engaging user experience.
By expanding the scope of tokens beyond blockchain limitations and embracing off-chain logic, we can explore real-world utility that resonates with individuals beyond the confines of on-chain assets. Simple utilities like price discovery can be embedded within any token, enhancing its value as an asset holding intrinsic worth.
Ultimately, advancing digital experiences through innovative utilities such as communication channels and tokens functioning as applications can revolutionize the landscape. Tokens could streamline processes like car ownership by enabling direct access to critical functions without the need for additional apps. This seamless integration of real-world utility, both on-chain and off-chain, can enhance user experiences and add significant value to society.
As we navigate the realm of token utility, we must prioritize real-world assets and intertwine them with real-world utility to create tangible value that transcends mere speculation. Embracing innovations that position tokens as central elements of our digital existence, recognizing them as communication tools, empowering asset owners, and facilitating greater price discovery are vital steps towards this transformation. With the right mindset, all these possibilities are within reach today.
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Mathew Sweezey
Mathew Sweezey, the Chief Strategy Officer at Smart Token Labs, spearheads a blockchain-based service network that facilitates the execution of token logic. Formerly a co-founder of the Salesforce Web3 Studio, Mathew played a pivotal role in developing Salesforce’s first commercial web3 products and collaborated with leading global brands on their web3 strategies.
