Everyone has already heard about real-world assets and tokenization, but not everyone knows what it truly means or how it can affect the future. Digitalization has been happening for decades, and now we are entering the era of tokenization. There is huge potential in this niche, as it remains largely untapped. We can tokenize everything, but a decentralized, scalable, fast, and affordable blockchain is required to make it a reality. This is where Nexa steps in and we can take a look at how Nexa can affect real-world assets and tokenization.
The Potential of Blockchain
First, we need to understand the potential of blockchain. For the first time in history, we have an open and immutable ledger, but we have yet to explore all its possibilities. Blockchain and its peer-to-peer nature are set to affect everyone’s lives, even if they are unaware of it. Understanding this fundamental nature gives you a solid chance to catch up with the future.
Open ledger and hashing algorithms protect blockchain’s open and virtual database, preventing falsification or counterfeiting, and everyone possessing a copy proves the public ledger’s authenticity providing a sound foundation. On top of that, it serves as money with a fixed supply, transparency, and resistance to fraudulence. You can instantly transfer this digital value from anywhere in the world. However, that alone does not fully virtualize our interactions with real-world assets.
Real-World Assets
Real-world assets are everywhere, and we constantly interact with them — from tickets and documents to land and real estate. Imagine a world where you can verify everything, where lies and manipulation no longer exist. A world where everything holds its real value and ownership. Where no one can counterfeit or fake things. This is entirely possible, and it can simplify our lives and change the way we interact with the world.
Starting with tickets, where the potential is knocking on everyone’s door. Booking and ticketing are part of our daily lives, yet the experiences are often disappointing. People lose or counterfeit tickets; they can’t easily resell, exchange, or verify them. Large companies take advantage of this and monopolize the ticketing industry, whether it’s a bus or a plane ticket. Centralized control and monopolies create an unfair environment that disadvantages smaller players. What if the tickets you bought truly belonged to you?
Documentation is the second big niche. We document everything, yet sometimes people lose, counterfeit, or destroy these important documents. Since land and real estate also rely on documents, we can group them together — but we won’t stop here. All documents require a middleman for approval, but not all middlemen are fair, open, or transparent, nor are they always acting in the best interest of both parties. That’s why removing the middleman matters. It’s not just about banks controlling your money, it’s about a system controlling every aspect of your life, with people within that system deciding your fate. What if we could remove corruption and lies from our day-to-day lives?
Tokenization
The potential of digital assets touches a $300 trillion industry. In theory and practice, we can tokenize everything. We’ve already mentioned smaller niches like ticketing, which require a fast and scalable blockchain. However, industries such as real estate, global markets, and documentation require more than just speed and permissionless access. Security, decentralization, and fairness play major roles here. Much groundwork is necessary for successful tokenization, and few networks are appropriate.
Many databases offer fast, open access, but lack decentralization and security. Blockchains also face this issue — if a blockchain is not fair and decentralized, can we truly trust it?
Trust doesn’t come out of nowhere. Knowledge, time, experience, and battle-tested features build trust. We cannot expect people to tokenize anything if we don’t provide the right environment. So, the real question is: What is the right environment for real-world assets and tokenization?
Developers have been working on Bitcoin’s Unspent Transaction Output (UTXO) model for more than a decade, and we’ve always known that Bitcoin is sufficient to meet global cryptocurrency needs and expectations. However, it has taken a lot of time to get to where we are today. At this point, we are confident that the UTXO model is fully scalable and programmable. UTXO-based blockchains essentially specify transactions at the top (as input UTXO’s) exactly what state it uses, and this model can handle everything as EVM networks handles from DeFi to decentralized exchanges, lending, and borrowing apps, etc. Bitcoin still leads the cryptocurrency world with its first-mover advantage, but Ethereum is not far behind — largely due to its programmability. Now, imagine a network where the best of both worlds merge into a single, monolithic system where everything is possible.
The Role of Nexa
Nexa is a technology originating from Bitcoin’s original source code. It is electronic peer-to-peer programmable money that already matches the speed of Visa, Mastercard, and SWIFT combined. The UTXO model makes it ideal for global electronic money, with real inputs and outputs, just like physical cash. Nexa has aligned decimals according to society’s needs, the money people are used to, and natively added tokens with programmability, which unlocks a wealth of new possibilities in the most fair and decentralized model among currently existing systems.
The protocol’s innovative approaches, such as the Open Outcry Exchange, combined with native tokens and smart contracts, leverage a programmable and parallelized technical foundation to remove scalability bottlenecks and scale to address global needs. Nexa is also resolving other issues, such as blind signing and maximum extractable value (MEV), that exist and are continually exploited on competing smart contract networks.
At the time of writing, Nexa is already capable of processing thousands of transactions per second through software improvements, and these numbers are set to improve to millions of transactions per second per chip with Blitz*, thanks to Chief Scientist Dr. Peter Rizun, who is leading research and implementation of hardware scaling solutions for UTXO networks.
Combined team efforts and innovations make Nexa an ideal network for real-world assets and tokenization. Tokens are native to the protocol, it is one of the few Satoshi-standard blockchains that runs in parallel on a UTXO model, is programmable, decentralized, and was fairly launched on an improved proof-of-work model. The improvements do not stop here, Tailstorm** is already on the way to unlock new capabilities and reach a new level of innovation, thanks to Gregory Griffith of Bitcoin Unlimited, who is developing this novel protocol while collaborating with the University of Massachusetts Amherst researchers.
*Blitz Cryptocurrency-Specific Integrated Circuits: A New Chapter in Scaling
**Tailstorm: A Secure and Fair Blockchain for Cash Transactions