The Future of Asset Management Platforms: How Digital Assets are Changing the Game
A Digital Asset is a new form of investment in the modern world. For retail investors, Digital Assets are creating new investment categories that are possible and accessible. Some of the most popular digital assets are cryptocurrencies, non-fungible tokens (NFTs), and virtual real estate in the metaverse – all these are based on underlying Blockchain technologies. Investors worldwide are interested in cryptocurrency and other blockchain-linked digital assets in recent years, due to their popularity and high returns.
To understand the Asset Tokenization platform, some fundamentals of Web3 are essential. We all know about Web2 – which refers to the current version of the internet that we use today. It is dominated by companies that provide services in exchange for your personal data. In contrast, Web3 is a decentralized network of computers that allows anyone to participate without monetizing their personal data. Built on Blockchain technology, it allows users to interact with each other without intermediaries. The key advantage of Web3 is users can own their data and control how it is used. Another difference between Web2 and Web3 is the way they approach challenges. Web2 focuses on reading and writing content, whereas Web3 focuses on creating content (Semantic Web).
Focus on Digital Assets: A View from Industry Analysts
These industry insights will help everyone to understand how digital assets are changing the game.
- According to Statista, the revenue in the digital assets market is projected to reach $56.42 billion in 2023 with an annual growth rate of 16.15%
- The number of users in the digital assets market is expected to amount to 994.30 million users by 2027 with a user penetration of 8.8% in 2023 and is expected to hit 12.5% by 2027
Finance Analysis reports from various institutions provide predictions based on research data collectively. These are a few to give an overview.
- State Street predicts that wider adoption, technological innovation, and regulatory clarity will continue to drive the adoption of digital assets in 2023
- Grant Thornton predicts that more businesses will explore blockchain solutions and smart contracts will offer a first use case for many businesses
- Forbes Finance Council predicts that areas with underdeveloped financial markets will see accelerated digital asset adoption and projects with concrete utility will drive sustained digital asset adoption
How can the Asset Management Platform on Web3 make a change?
Compared to traditional asset management platforms, a Web3-based one can bring many benefits to the business and users. From the perspective of business and commercial users, there are some key expectations such as:
- Ability to integrate with publicly distributed blockchain networks
- Security to assets and credentials from Cryptojacking
- Regulatory management with KYT/AML
- Visual ledger/dashboard for the asset owners to understand statuses instantly, notifications on balance, holdings and recon
- Resembling a traditional SWIFT transfer, transactions must be recorded securely, and mapping ledger transactions with existing systems
To cater to these expectations, Web3 is the perfect solution because it can securely and efficiently connect with public blockchain networks such as Ethereum, and can provide a user experience resembling a traditional SWIFT, and connect with existing systems to map ledger transactions.
Web3-based Decentralized Apps, which work on Blockchain Networks provide immersive benefits over traditional ones, some of the features are mentioned here.
Censorship resistance: With a traditional approach, the government or other central authorities can control or restrict access to your accounts. With Web3, there is no single entity controlling the DApp, making it very difficult for any individual or government to control or restrict access to the DApps.
Safeguarding user privacy: Users generally do not need to submit any personal information to access the functionality of DApps.
Legal, Regulatory, and Risk framework Integrations ensure the processes required for application users
Connected to the financial infrastructure of Web3: DApps are connected to the financial infrastructure of Web3. This means that you can use your cryptocurrency holdings in your wallet to interact with these DApps.
More secure, transparent, and trustless services: Web3 DApps are built on top of blockchain technology which is known for its security and transparency. This makes it more secure and transparent than traditional platforms.
Relevantz Experience with Web3-based Decentralized Asset Management Platforms
As a solution provider in the digital space for the past 25 years, our experience in building enterprise-grade applications is unique. We started with a PoV (Proof of Value), and based on its endorsement, the development moved to build a complete Web3 platform-based distributed application (Distributed Autonomous Banking – DAB) that reviews BTC and ETH unsigned transaction objects along with validation of multiple criteria such as fee calculations, reconciliation of books and records against transactions, independent validation of historical transactions on the blockchain, etc. Our engineering experience and extensive knowledge in Fintech helped us to deliver Smart Contracts with industry standards.
Conclusion
Digital Asset Management platforms on Web3 technology are definitely game-changing business models. Banks and Fintech institutions are focused on it through Development, Publishing, and providing custodial benefits. Building a branded Decentralized Asset management platform, creating customized NFT collections, Business specific tokens, and AI-based market analysis tools are going to be a striking opportunity in this market.
What Relevantz Can Do for You
Relevantz can help you explore use cases of digital assets, tokenization, and blockchain that will fit your needs and the growing needs of your customers.
Want to include digital assets in your financial products?
