Why Web3 Is The Key To A More Transparent And Equitable Economy

The modern economy is changing its face, propelled by the advent of Web3. This new digital ecosystem promises to blow up the old rules of the game by transforming physical assets into digital tokens. The idea? To make the economy more accessible, more efficient, and, above all, more “calculable.” A closer look at these revolutionary transformations and their impact, particularly in the luxury sector, a pioneer of this new economic era.

Economics and Web3: a well-oiled machine

Since always, the economy has sought to reduce frictions: from the first Sumerian tablets to contemporary blockchains. But here we are, our current systems remain a bit too archaic, filled with intermediaries as reliable as a leaky umbrella in the monsoon. Web3, which can adapt to accounting, shakes all that up.

🧵Thread: How Web3 and RWAs Unlock a Computable Economy

1/ With the rise of #Web3, there’s increasing interest in how Web3 and RWAs can shape a new computable economy through decentralized infrastructure.

2/ 🔗 @BosonProtocol and @FermionProtocol are at the forefront of… pic.twitter.com/I5Ms3sL20H

— Shero (@sopranos_ak) October 8, 2024

With blockchains guaranteeing immutable and verifiable transactions, the economy finally becomes “calculable”. This means it can handle complex interactions without relying on slow and costly intermediaries. The benefits are numerous:

• Clear and indisputable ownership: rights are etched in digital stone;
• Automatic commitments: your money only moves if conditions are met;
• Total transparency: no more grey areas and dubious arrangements.

This evolution paves the way for a more fluid and inclusive economy. And this is not just geek talk: entire sectors, like luxury, see it as a chance to reinvent their models, by creating new forms of interactions with their communities.

Tokenization: luxury in a kit for everyone

The tokenization of real assets (RWA) promises to democratize goods that have so far been reserved for an elite. Take a luxury watch or a diamond necklace: yesterday, you had to have the means of an oligarch to acquire them. Today, thanks to tokenization, you can own a fraction for the price of a dinner at a starred restaurant (without the wine, of course).

The luxury sector, faced with declining demand among young people, adopts this approach to attract a new generation. The benefits are enormous:

• Fractional ownership of assets: a piece of jewelry can be divided into exchangeable digital shares;
• Usage in decentralized finance: these tokens can serve as collateral for loans;
• Community ownership: brands offer pieces to the most loyal members of their communities;
• Enhanced engagement: this model redefines the customer relationship, turning buyers into co-owners.

Tokenization: The Future of Investment

Explore how VESTN is reshaping the RWA landscape, unlocking liquidity, and making high-value investments accessible to all.

From luxury real estate to emerging asset classes, we’re at the forefront of this $16T revolution.

🔗 Read the… pic.twitter.com/Mo6WU6as23

— VESTN | ON-CHAIN RWAs (@VESTN_io) December 14, 2024

This dynamic is not limited to luxury. It heralds a future where every physical asset, whether real estate or artworks, will be integrated into the digital economy. Offering everyone a slice of the pie, without necessarily having to pay the full recipe.

In summary, Web3 and tokenization not only revolutionize the economy: they reconstruct it brick by brick. And as McKinsey reports, the market for RWAs could reach 4 trillion dollars by 2030. It’s safe to say that the future looks bright… and calculable.