Legal Enforceability in Web3: The Need of the Hour
The FTX saga serves as a stark reminder of why we need strong legal enforceability in Web3. Legal enforceability ensures that digital assets are more than just speculative 'coins'. It provides investors with confidence that their rights are protected and upheld. Essentially, it's about making sure that when you buy an asset on the blockchain, you genuinely own it and that ownership is protected.
Real World Assets (RWA’s) + Web3
Real-World Assets (RWAs) are tangible assets that have value and exist in the physical world. They can range from property to commodities and infrastructure like roads or power production. The integration of RWAs with Web3 can revolutionise asset ownership and investment. By tokenizing RWAs, they can be easily divided, bought, sold, and traded using blockchain as its secure and transparent basis, opening up opportunities for global accessibility and ownership.
Imagine owning Tea in China, property in Argentina, and Whiskey from Ireland, all without ever needing to move the physical goods, but with the assurance that your investment is real and secure. Blockchain can do this, but requires that we have legal frameworks to protect against fraudsters like Bankman-Fried.
This makes investing in such assets more affordable and accessible to a larger group of investors. In the context of Web3, RWAs offer a more stable and tangible investment opportunity compared to purely virtual assets, which are generally highly speculative. By combining the security and transparency of blockchain technology with the intrinsic value of physical assets, RWA tokenization on Web3 platforms like Momint offers a promising avenue for sustainable and inclusive wealth generation.
Enter SunCash - Renewable Energy Made Simple
In this landscape enters SunCash by Momint, a shining example of RWA integration with Web3. By offering legally enforceable ownership of real-world assets, SunCash owners gain part ownership of real solar projects, earning a forecast 12% yield from the electricity generated and sold by the project. This model is supported by real, valid and enforceable legal agreements including Power Purchase Contracts.
SunCash isn't just another ‘crypto’ project; it has been globally recognised at the Global Startup Awards for its innovative approach to bridging blockchain assets and real-world legal contracts. With SunCash, you're not just speculating on 'coins'; you're investing in real assets that generate real, stable income. We aren’t even touching here how these are renewable energy sources, good for the planet and completely aligned with sustainable development goals.
“With SunCash, you're not just speculating on 'coins'; you're investing in real assets that generate real, stable income.”
Earnings are distributed using a smart contract that looks at the on-chain owners, and divides the income amongst them, transparently. and securely. And here is the big part; it takes under 30 seconds and just a few dollars to process a split to even thousands of people, regardless of location.
Traditional financial systems could take days, if not weeks, to process such global transactions, which often come with hefty fees and are prone to human error. However, with blockchain technology, these processes are expedited remarkably. The speed of these transactions are 14 400 times faster[1] and 650 times cheaper[2] than traditional financial rails. This monumental increase in efficiency not only benefits the users but also propels SunCash's mission of making renewable energy investment accessible and profitable for everyone.
“The speed of these transactions is amplified to be 14,400 times faster and the cost is reduced to be 650 times cheaper than traditional financial rails.”
The FTX saga, while a thrilling tale of deceit, serves as a crucial lesson on the importance of legal enforceability in Web3. As we navigate this new frontier, platforms like Momint offer a promising solution to investors - the security of legally enforceable ownership of real-world assets on the blockchain.
Let’s hope that the world continues to move towards a regulatory framework that supports Legal Enforceability without stifling the exciting progress being made with this technology.
References:
[1] Assuming 5 working days time to remit the dividend
[2] Assuming $30k income and 6.5% avg. international remittance fee
