Real-World Asset (RWA) tokenization is emerging as one of the most promising applications of blockchain technology, enabling traditional assets such as real estate, commodities, and securities to be represented as digital tokens. While Polygon has been at the forefront of this transformation, other Layer 2 solutions are also stepping in to enhance scalability, security, and efficiency. In this article, we explore how Layer 2 technologies are revolutionizing RWA tokenization beyond just Polygon and what this means for the future of decentralized finance (DeFi).
The Ethereum blockchain, the preferred network for asset tokenization, faces challenges such as high gas fees and slow transaction speeds. Layer 2 solutions help mitigate these issues by processing transactions off-chain while maintaining Ethereum’s security and decentralization. This scalability is essential for RWAs, which require seamless, cost-effective, and secure trading.
Some of the key benefits of Layer 2 solutions for RWA tokenization include:
- Lower transaction costs — Reducing gas fees makes tokenized asset transactions more accessible to retail and institutional investors.
