CONCEPTUAL BASICS OF RWA-TOKENIZATION IN THE DIGITAL ECONOMY

Keywords: RWA tokenization, digital economy, blockchain, distributed ledger technology, token, smart contract, assets, financial instrument

Abstract

The article explores the conceptual foundations of Real World Asset (RWA) tokenization as a logical evolutionary stage of web technologies towards a decentralized internet architecture - Web 3.0. The research provides a comprehensive analysis of the Internet's transformation from Web 1.0 to Web 3.0, meticulously describing each developmental stage's distinctive characteristics and technological paradigms.

The study presents an innovative concept of RWA tokenization, grounded in four critical components that collectively form its unique structural framework and transformative potential. These fundamental elements include real-world assets, blockchain and distributed ledger technology (DLT) platforms, digital tokens, and smart contracts. A detailed examination of each component is conducted, highlighting its pivotal role in effectively implementing RWA tokenization technology.

The research introduces a sophisticated structural-component RWA token design model encompassing multiple sophisticated dimensions. This comprehensive model integrates token architecture, interoperability, economic modeling, governance mechanisms, and robust security protocols. By delineating these intricate aspects, the study provides a holistic framework for understanding the complex ecosystem of RWA tokenization.

The research's significant focus is exploring the advantages of smart contracts within the RWA tokenization landscape. The article traces the chronological evolution of asset tokenization, demonstrating how technological innovations have progressively reshaped traditional investment and asset management paradigms. Furthermore, a detailed schematic is presented, illustrating the RWA tokenization process and how tangible real-world assets are seamlessly transformed into digital tokens, thus unlocking unprecedented opportunities for investment and financial innovation.

The findings of the research highlight the profound potential of RWA tokenization, particularly within the context of Ukraine's digital economic transformation, especially in the challenging post-war reconstruction period. The study argues that RWA tokenization can emerge as a powerful strategic instrument capable of revitalizing the country's economic potential. By providing an efficient mechanism for investment attraction, facilitating the transformation of traditional economic models, and ensuring transparency in investment processes, this innovative approach represents a promising pathway for economic resilience and sustainable development.

The comprehensive analysis underscores the significance of RWA tokenization as more than just a technological trend but as a fundamental reimagining of how value is represented, transferred, and managed in an increasingly digital and interconnected global economy.

Author Biographies

M. RIABOKIN, Kyiv Institute of Business and Technology

PhD (Econ.), Associate Professor,

Vice-Rector of KIBiT

Y. KOTUKH, National Technical University «Dnipro Polytechnic»

DSc (Public Administration),

PhD (Tech.), Associate Professor

References

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Published
2024-10-20
How to Cite
RIABOKIN, M., & KOTUKH, Y. (2024). CONCEPTUAL BASICS OF RWA-TOKENIZATION IN THE DIGITAL ECONOMY. Herald of Kyiv Institute of Business and Technology, 51(2), 138-155. https://doi.org/10.37203/kibit.2024.51(2).12