Blockchains are now part of our life. They are being used in variety of places. Be it financial firms, mutual funds, govt and the banks. All of them are moving to the blockchain. And this also means that they would be slowly adding every little detail of the crypto asset on the chain. 

Recetly the real world assets were mapped to the blockchain and the new term came out due to this event, known as Real world Assets aka RWA. This type of the asset is likely to be the new norm among the govt and banking sector. So that would also be mapped towards the digital identity real soon. 

Let's take a look at the blockchain real world assets and how do they work and what future they hold in upcoming times. 

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![]( https://img.inleo.io/DQmPQzfBwkbcYyf9uoM6DEAZBv9d9Ar2iY7LdyuuhSfQApA/leo.png)


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### What are Real World Assets (RWA)?
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I assume you have dealt with the real estate assets and the bonds, providend funds etc. And those assets are digitized and taken to the tokenized form. This tokenized form would be called as the Real world Assets. And that approach of turning the real world assets and then allowing the custody of such RWA items is the new future for the banks in upcoming times. 

These RWAs can also be filling up a good set of space in the DeFi market. Like you have asset that can be kept on collateral for the loan. And you would be able to execute that action with the real world cash or the CBDC offers through the system. This is one of the use case of the real world assets that is going to be making some waves in the financial market. 

### Use Cases of Real World Assets in Crypto
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We talked about what they are and now we are going to talk about what can we do with the real world assets in crypto. So the RWAs are not only the real world use case friendly but sooner or later they are going to be a norm in variety of the real world scenarios. Be it like real estate bond, retirement bond and many other such real world financial documents with weight. 

You would also find the RWAs making sense in the places where you would be keeping things in collateral. Like you do with keeping car, house and land for the collateral. Many financial firms are already investing into the RWA and the type of the collateral, ROI and the returns for the escrow it can be. So this would be forming a good real world value in upcoming times. 

### Risks with RWAs
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Crypto does come up with it's fair share of the issues. And there are risks of the security too. You can see a lot of blockchains get tampered and often the seed phrase leak and other issues that mightcome in would be another thing that we have to watch out for. Which is something many nations are worried about when it comes to RWA and the digital custody. 

Another issue is that tying the digital compliance and not able to keep the citizens on the check for the adoption is another thing to worry about. Govt workers and the citizens both have to keep up with the changes in the crypto, blockchain and the RWA world that has caused issues for the people who are planning on handling crypto. So these are current known risks as of now. 

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Real world assets are soon going to get digitized and also the compliance that are associated with it. So if we were to manage the blockchain based economy this would soon become the norm. 

Posted Using [InLeo Alpha](https://inleo.io/@esmeesmith/blockchain-real-world-assets-rwas-explained)