For Real World Assets (e.g. Real Estate) to come on-chain (e.g. as NFTs), there needs to be a way of linking the physical to the digital object in a trustless way. This seems impossible. Who is tackling this and what are the solutions?

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Yes, currently impossible as a purely trustless process given dependence on off-chain entities and agreements. But certain jurisdictions + protocol combos could emerge where it’s feasible and permissionless enough for the vast majority of investors and DAOs.