RWA, EoT, and Decentralization

(I do not make any recommendations; this article is merely a personal reflection on a new technological environment I am studying.)

From my own article in medium

Today, I was reflecting on the comments I made in the article https://medium.com/@willonly23/particle-network-cf703964c6ae and imagining a potential future for decentralization and EoT environments.

Let’s briefly recall some concepts:

RWA: Real World Asset. Simplifying, it aims to bring things that exist “in the physical (or financial) world” to the blockchain, establishing a direct relationship between real assets and digital assets.

EoT: Economy of Things. Simplifying, it is a step forward from IoT. While IoT (Internet of Things) refers to machines communicating with each other over the Internet, EoT refers to machines establishing a dialogue that can result in an economic transaction between the parties. For example, I want to charge my electric car; I plug into an X charger, X identifies the car, the owner, and performs an automatic cost charging operation to the wallet associated with the car, without (or with) human intervention. In the scenario I am discussing, I am referring to decentralized blockchain environments.

Decentralization: Environments where there is no central entity controlling or managing operations, having access to the data of all users of the service. Something that happens, for example, when we refuel at a gas station or similar.

In the scenario I mention, we can find alternatives of decentralized networks specially designed for EoT, such as peaq, with the development of modules and its own network focused on efficient, fast, and secure communication between machines. The security layer is provided by being a Polkadot parachain, capable of scaling up to 100,000 TPS at a cost of $0.00025. However, as I mentioned in my article, one of the major barriers is the adoption rate of Web3. Without this adoption, it is really difficult for the EoT environment to reach its full potential; significant growth is possible, but not widespread use. Therefore, it is very important to focus, in my opinion, on usability issues. It cannot be that you depend on whether a charger is designed to work with peaq and another to work with X…. we must be able to abstract from these layers to generalize usage. That is why I was especially excited about the news of peaq being able to work in Mastercard’s innovation program and with Particle.

Can you imagine a 65-year-old person, who knows nothing about blockchain, arriving with their credit card and paying to use Paco’s charger (yes, my friend Paco from other articles 😊), and Paco receives the operation directly to his peaq wallet? How wonderful! We must work so that those who want to exploit the full potential of the blockchain can do so, but without wasting the market potential of people who do not know about Web3…. they should also be in our market target.

This example is perfectly valid in the case of investments, as my good friend @gsan71 mentioned in his article https://medium.com/@gsanjaime2022/peaq-connecting-web3-with-the-real-world-1b21a99124a3 about asset tokenization, using the example of a coffee. We cannot leave behind people who want to pay with their mobile phone, without a wallet, with their Apple Pay or Google Pay… both to use the machine and to buy tokens that represent part of the machine.

Who says you could invest in a coffee machine — why not in other assets? Even assets that require additional legal validation — what would happen with Logion, peaq, Mastercard, Particle, etc. working together? Logion providing legal validity for some operations that may require it, Mastercard paying for operations in the “traditional world,” peaq offering the operational infrastructure… boom! My head just exploded. It is true that all this is imagination for now, but I also think that AI was pure imagination not long ago. I don’t know if this idea I have will become a reality or not (I don’t think anyone knows), but could it happen… I think so… will it happen? I don’t know, but I keep learning, studying, and positioning myself in this innovative and almost science fiction world that is emerging; I don’t want to miss it because I think there is still a lot to innovate, much to offer the market.

While other proposals, such as metaverses, appeal to me, I see them even more in the long term; these EoT/RWA environments seem so close…

Every day, more proposals appear that will strengthen relationships between machines and people (I am talking about EoT 😊), KYC systems that will allow machines to perform quick operations without having to access customer information, reinforcing their confidentiality, decentralized systems to take advantage of unused resources… uff, my head explodes with the world of possibilities that could open up…

I think I’ll stop writing and continue investigating and doing my own analysis.