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Tokenization of real-world assets (RWA)
Tokenizing an asset refers to the act of representing an ownership interest in real-world assets in a digital token (i.e., tokenization is the process of issuing a token that digitally represents tradable assets). Any asset with real-world value such as art, commodities or real estate can be easily tradable once it is converted into a digital representation in the form of a token. These tokens are issued through security token offerings (STOs) and can then be traded on a KYC/AML guarded secondary market such as MANTRA Chain’ decentralized exchange (DEX).
Tokenization creates a more seamless process for the transfer of ownership. Because all tokens exist on the blockchain, and a blockchain is another word for a ledger, much of the bureaucracy and manual processes associated with the transfer of these assets is automated and maintained by the blockchain. Each transaction that involves a token has sender and receiver signatures, a time-stamp, and an amount-paid recorded in the blockchain’s transaction data that is completely transparent and immutable.
MANTRA Chain’s protocol will implement an identity system known as “Decentralized I.D.” (“DID”) for onboarding users for purposes of KYC or KYB (know your customer / know your business). DID will allow all types of users to onboard in a permissionless way through the chain, allowing them to make use of the underlying ecosystem. With this one-time permissionless onboarding process, MANTRA Chain will provide a passportable user experience similar to those currently used by centralized systems, resulting in a smooth customer journey.
With a DID system in place, users will benefit from an added security layer, reducing the risk of fraud or malicious activities with the help of proper AML/CT screening. This enables MANTRA Chain to offer users the ability to build a safe, transparent and efficient ecosystem.
On and off-ramping
With MANTRA Chain’s development focus on anticipating increased regulatory efforts in many jurisdictions, retail and institutional users will be able to access on-ramp and off-ramp services for fiat, equities, tokenized securities and digital assets through MANTRA Chain in a regulatorily compliant environment.
Governance MANTRA Chain utilizes on-chain governance. We intend MANTRA Chain to continually upgrade and improve over time through community member participation. Members can coordinate formally on-chain and informally off-chain to participate in discussions and debates about the Chain’s operations, propose changes, and vote on them. As some networks, like Ethereum, do not offer any sort of on-chain governance features, MANTRA Chain’s on-chain governance offers significant differentiation through participatory engagement from all stakeholders involved.
The Cosmos Hub is a blockchain that hosts a multi-asset distributed ledger, where tokens can be held by individual users or by zones themselves. These tokens can be moved from one zone to another in a special IBC packet known as a “coin packet”. IBC coin packet transactions must be committed by the sender, hub, and receiver blockchains.