yuga.eth on Warpcast

yuga.eth pfp

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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Mike Sall pfp

USDC is an example of already successful on-chain RWA. (Would you agree?) I think it can look like that, and that it's still valid "defi" to have a trusted verifier of the asset while enabling trustless (and permissionless & interoperable) transactions on it.

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Ben Scharfstein pfp

Ben Scharfstein

Why does it need to be trustless? Could come on chain in a trusted way and enforced by real world courts and contracts. Wouldn’t get all the benefits of trustless assets but could still get some.

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Ben 🟪 pfp

Curious what has you interested in RWA? Do you invest in real estate?

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Cassie Heart pfp

One example: house titles. The issuer would still be the state, but without a fully transparent chain of custody it’s a shitshow — there’s lots of fraud, sometimes not found until a year into possession. Doing this on chain even with a trusted issuer would be a massive win.

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Brent Fitzgerald pfp

Brent Fitzgerald

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.

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Alberto Ornaghi pfp

Alberto Ornaghi

That’s the good old oracle problem. And afaik it’s not solved yet. Tokenizing real world assets still require a centralized entity.

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osama pfp

oh you mean this demo from Chainlink/burrata recently — https://youtu.be/eJqZQ2_VBzo?t=1610 happy to chat if you’re interested … dc me

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Zach pfp

👀 @courtyard we’re starting off with IRL collectibles (trading cards, shoes, watches etc.) all vaulted and insured at Brink’s

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Rani pfp

i don’t think it can happen in a trust less way. real estate needs land registries keeping track of links. no way around it. cuz u need to enforce legal. other luxury items could create some sort of system of verification.

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Ben 🟪 pfp

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Ryan Lackey pfp

There does not need to be a way to link trustlessly. Nothing is trustless at a fine enough level of detail. Market will premium or discount based on the intermediary.

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Rusty pfp

Municipalities will do this behind the scenes naturally as they realize it's an easier storage layer than whatever 90s monstrosity db they're using now. The only alternative is if we put guns for hire on chain first, and that's a whole other conversation.

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Jon pfp

Saw that Roofstock announced a property sale today via NFT with onchain financing. A step in the right direction.

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Dave Morin pfp

Has already been done with sDAO 1. Everyone who participated now owns part of a piece real estate near Flathead Lake in Montana. They are now working on doing one for a piece of productive timber land next.

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emon pfp

NFC-enabled multi-sig property deed

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tyler.scharf pfp

A QR code engraved in the frame of the property that matches to the NFT deed when scanned

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Karthik Senthil pfp

Karthik Senthil

@karthiksenthil

Think you need trust (otherwise u have the oracle problem). You can use on-chain for its other benefits tho (low overhead, composability, etc)

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Sagar Shah pfp

Harder to do it in a trustless way, but possible in a trust-minimized way. A possible approach could be to use trusted custodians to securely hold the assets and enlist multiple auditors/oracles to monitor, verify and report on-chain the status of those assets.

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0xNATIVE pfp

It needs legal framework. Ethereum as it is not ideal for such assets.

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