Tokenization: A Barcode, Not a Supply Chain

Tokenization of assets is often touted as a revolutionary step forward in financial markets. However, Jesus Rodriguez, Co-founder of Sentora, argues that it's just a 'barcode', useful but not transformative on its own.

Rodriguez points out that tokenization merely represents rights, whereas DeFi (Decentralized Finance) brings actual utility to the table. He likens this to the early days of mortgage markets, where electronic records were introduced, but it was the accompanying operational mechanisms that truly scaled the industry.

For RWA (Real-World Assets) to reach its full potential, it needs to undergo a similar evolutionary process. This involves developing six key levels: legally enforceable rights, reliable data sources, clear transfer and redemption rules, executable secondary market liquidity, realistic collateral parameters, and credible clearing and loss disposal paths.

Rodriguez suggests that asset maturity can be tested by answering three simple questions:

<p>What is the current value of this asset?

Can the protocol complete an exit liquidation at this moment?

If the first two judgments are completely wrong, who bears the loss?

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