In this video by Adam Blumberg, he discusses the increasing prevalence of real-world assets being brought onto the blockchain, a concept known as “on-chain.” According to Blumberg, these assets can range from real estate to private companies and even artwork. The blockchain serves as a database for tracking ownership of these assets, eliminating the need for intermediaries such as banks or financial service companies.
One significant aspect Blumberg highlights is the tokenization of income streams. As financial advisors have long emphasized the importance of income streams, tokenizing them allows for a more efficient way to secure loans based on income. This can be achieved through smart contracts and on-chain verification of income, creating a more transparent and accessible system for borrowing.
For instance, if someone is earning income in cryptocurrency, that income is visible and can be verified on the blockchain. By tokenizing the income, individuals or businesses can demonstrate their creditworthiness and secure loans in a decentralized manner. This could mean lower interest rates, as the process is wrapped in smart contracts, making it more efficient.
Blumberg also mentions the potential for streaming payments and the use of protocols like Superfluid, which enable small amounts of money to be sent every second. This can be utilized for repaying loans, creating a seamless system for borrowers and lenders.
Furthermore, businesses can use platforms like Humor Finance to factor their accounts receivable, as the crypto world allows for a more efficient, transparent, and cost-effective process compared to traditional methods. Financial professionals need to understand these concepts, as more clients are likely to be paid on-chain, and there will be an increasing demand for on-chain credit and loans.
Adam Blumberg’s insights point to a future where real-world assets and income streams become increasingly integrated with blockchain technology. This shift will lead to a more efficient and transparent financial system, with exciting opportunities for financial professionals to provide help, safety, security, and efficiency in this evolving landscape.