Theses B

Theses B: Impact Of Asset-Compliant Blockchains On Current DEFI And Web3 Industry

B1: Legalize or demonetize

Given the requirement for cash withdrawals and transactions to be linked with blockchains that are synchronized with applicable regulatory frameworks related to private ownership (we call them ‘Private Assets Chains’, or ‘Asset Chains’), providing proper synchronization with applicable regulatory framework related to private ownership. All external digital funds will need to be onboarded onto this blockchain initially. Following Thesis A9 premise, alternative forms of selected stablecoins will become inadmissible on the national blockchain, losing their territorial utility and, over time, their entire use case. This scenario suggests a gradual decline of current stablecoins in favor of national stablecoins, which will gain exclusivity and dominance in the digital currency landscape.

B2: Tokens standards 1:1 mapping with legal assets and ownership types

Building on the principles outlined in theses A3, A11, and A12, all assets will be replicated on the blockchain on a 1:1 basis, harnessing direct causality benefits. For an asset to be considered legal, its linkage to a given asset type on the blockchain will be mandatory. While it will still be possible to create digital assets not associated with legal token standards, and to exchange these through existing DeFi blockchains or DEX solutions for stablecoins, there will be no legal mechanism to convert them back into the economy. This scenario implies that the current blockchain and DeFi ecosystems will become functionally obsolete and significantly lose value, as they will lack a legal 'exit' point for transactions.

B3: The end of anonymity and decentralized anonymous blockchains

Based on Thesis A-4, anonymous blockchains like Ethereum, Polygon, Solana, and Bitcoin will face obsolescence, as their use cases, rationality for existence, and even legality will be challenged. This shift will catalyze a significant redirection of capital from decentralized finance (DeFi) back into traditional financial systems. This transformative change in the financial landscape is expected to occur within a 5 to 10-year timeframe, marking a pivotal transition from anonymous, decentralized platforms to regulated, national blockchain ecosystems.

B4: One chain for each country

In the event of widespread adoption, national blockchains will be recognized as selectable 'chain types' within applications such as MetaMask. Transferring assets and tokens from one chain to another will necessitate either a currency exchange, in line with Thesis A9, or the reassignment of the ownership token of an asset to a wallet governed by a different legal system.

B5: Fully traceable assets

The widespread adoption of Asset Chains will enhance the tracking and management of Real-World Assets (RWAs) through tokenization. Not only will Asset Chains facilitate the direct causality between tokenized asset registers and their physical counterparts, but they will also enable real-time tracking of movable assets. This is achieved through updates to a 'current location' metadata field, reflecting the asset's physical relocation. Additionally, Asset Chains will support the seamless reassignment of asset ownership and the corresponding change in applicable legislation, by transferring the asset to a wallet operating under a different Asset Chain.

B6: Legal wrapping for never the final go-to solution, just temporary patch with limited use case

Current Real-World Asset (RWA) tokenization solutions primarily focus on leveraging private and corporate law to facilitate the process, often at the expense of legal causality. This approach tends to replace genuine ownership with weaker, legally enforceable private receivables, effectively distancing users from their assets. As products designed for business-to-business (B2B) interactions, these solutions do not cater to or provide value for the general public or the "average person," making them unsuitable for widespread adoption.The introduction of national decentralized RWA registries will render existing tokenization solutions obsolete, much like how public entity registers have superseded traditional public company registries. This shift will compel existing RWA solution providers to either significantly alter their business models or risk obsolescence.

B7: Existing RWA tokenization solutions will disappear from the market in 5 years

All existing Real-World Asset (RWA) tokenization solutions will be superseded by national blockchain-based RWA registries that enable direct causality. Certain assets, such as real estate, land, vehicles, and legal entities, will require mandatory registration in these registries. Other assets will have the option for tokenization to streamline ownership management. These blockchain-based RWA registries will provide APIs, for further re-use and connecting ‘layer-2’ registered based on on-chain data (e.g. more private credit risk scoring databases).

Last updated