🏠What is an RWA (Real World Asset)?

Real world assets, Real-World Assets (RWAs) are fungible or non-fungible tokens that represent traditional financial assets on the blockchain.

Real world assets have an oracle system that manages connections between the web2 and web3 networks, for functions such as detecting the value per m2 in the area, and nearby new constructions.

Here is how real world assets like real estate can interconnect with blockchain using oracles:

Property Tokenization:

First, the property is tokenized, creating a digital representation of the property on the blockchain. This token can represent the whole property or fractional parts of it.

Oracle:

An oracle is used to feed real-world information about the property to the blockchain. This could include data like current real estate market prices, property status (whether occupied or vacant, in need of repairs etc), or whether the property was sold.

Smart Contracts:

Smart contracts that automatically adjust the token value based on oracle-provided information on the current market value of the property.

Interacting with Other Systems: Additionally, the oracle information can be leveraged by other systems on the blockchain. For example, a lending system could use the oracle information to determine how much money can be lent with the property as collateral.