2024 will be the year that transforms traditional asset management. Institutional investment in blockchain technology has been predicted for years and is now becoming a reality.
Key capabilities, particularly the development of the zero-knowledge Ethereum virtual machine (zkEVM), could enable the tokenization of real-world assets and set the stage for a fundamental transformation of the global financial system.
Institutions need mainnet-level security, infinite scalability, and vast liquidity potential. Advances in developer tools and mathematically proven security measures will finally put together the necessary components to deliver on this promise.
This will in turn lead to mainstream blockchain adoption.
Transparency through chain abstraction
zkEVM is well established in blockchain infrastructure as it allows smart contract transactions to be executed within a zero-proof environment. Institutional investors can now leverage the proven ecosystem of Ethereum-based blockchains, with robust security guarantees, decentralization, and transaction transparency, at much lower costs, faster settlement times, and potentially Now available with unlimited expansion capacity.
What Web3 success looks like is creating a “chain of chains,” which is essentially a seamless user experience across the entire ecosystem. Part of the liquidity benefits come from the ability to integrate a variety of applications ranging from gaming, DeFi, and permitted institutional platforms. Each of these requires a custom-tailored blockchain architecture with varying levels of permission, privacy, cost, security, and incentive design.
Technical decisions about chain design are abstracted away, allowing developers to build secure infrastructure and focus on optimizing a single use case. Blockchain interactions are transparent as application layer functionality can be improved. The final stage means an expansion of the blockchain ecosystem where institutional investors can access the high liquidity and security benefits of zero-knowledge transactions across the Ethereum ecosystem.
Institution-wide liquidity aggregation
zkEVM facilitates enormous liquidity potential by enabling near-instant payments and seamless cross-chain transactions and liquidity transfers. Users can obtain liquidity from one chain and perform decentralized exchange (DEX) transactions on another chain seamlessly.
Institutional size requires institutional-level liquidity. In the near future, we will see the introduction of not only tokenized products into the ecosystem, but also more sophisticated financial tools such as derivatives. Achieving this will require major technological innovations, the main driver of which will be the aggregation of all fluidity in space within a single layer that can efficiently manage these resources. That's it.
Blockchain technology enables 24-hour transactions and access to previously inaccessible assets and vehicles, but institutions require customizable chains and integration with legacy systems presents major challenges. will occur. zkEVM's capabilities bring game-changing levels of security and integration possibilities.
Most recently, Hamilton Lane and Brevan Howard I became a user Libra's new real-world asset tokenization platform developed using the Polygon Chain Development Kit (CDK). Polygon CDK is permissionless software that allows developers to create new chains with varying degrees of decentralization, security, and functionality, including matching users with hedge funds, loan collateral, and other suitable financial instruments. Customizable to suit your compliance needs. investment products.
As we move forward, the ecosystem's key enablers for institutional investors will be to enhance the developer experience and provide security and safety backed by mathematical proofs. This reduces operational costs and provides a way to integrate legacy systems in a way that supports compliance and security requirements.
