Crypto: Breaking Real-world Assets Don’t Need New Gatekeepers
Permissioned blockchains and centralized layer 2s rebuild intermediaries for tokenized assets. Based rollups inherit Ethereum security while enabling compliance.
Opinion by: Joaquin Mendes, chief operating officer of Taiko
For centuries, value moved between hands: gold for grain, livestock for land. No intermediary decided on arbitrary values; the price was determined directly between the parties. No intermediary decided how much a cow was worth, whether the deal was fair or whether someone was qualified to make the trade or not. The exchange was simple: One party had something the other wanted, they agreed on terms, and the transaction was concluded.
These exchanges have grown more complex. Banks hold funds, brokers trade assets, and custodians verify ownership. This has erased the relationship between buyer and seller, and diminished agency. Today, institutions set asset values, control access and define conditions.
This growing institutional adoption is promising, but the approach matters. Institutions like BlackRock and Grayscale are investing heavily in tokenized real-world assets (RWAs), yet many rely on permissioned blockchains, centralized layer 2s and private networks — structures that undermine blockchain’s promise by reintroducing unnecessary intermediaries.
Permissioned chains restrict participation and terms, while centralized chains become single points of failure, allowing a few to dictate transaction order and censor trades. Private chains close off assets, placing control in the operator’s hands and severely limiting interoperability.
Consider a tokenized property worth $10 million. If split into 10,000 pieces and traded on a permissioned chain or centralized layer 2, participation will still require approval from a gatekeeper. The value of this asset will remain subject to platform rules rather than a direct agreement between the parties. The middleman has not been removed; they’re just onchain now.
Regulatory compliance is the primary concern. Regulators require identity verification, transaction monitoring and enforcement capabilities. The industry assumes this demands centralized control (oversight by a single operator) because that’s how traditional finance operates. If authorities need to freeze assets or reverse transactions, a centralized operator (one entity in control) can act immediately.
Related: Ether’s chance of turning bullish before 2025 ends depends on 4 critical factors
This level of control increases regulat
Source: CoinTelegraph
