Before, I would probably think like this, but now I think not exactly. Tokenization does not automatically remove the need for trust, law, collateral or verification. It just move the problem. Actualluy, tokenization should make rights, claims, restrictions and proofs more readable, more auditable and more executable. And collatéral is mostly needed when there is uncertainty about the truth of a state. Does the asset really exist? Does it really belong to this person? Is it already pledged somewhere else? Is it free of any claim? Is the transfer final? Is the price reliable? Can the system execute without trusting a third party? When you cannot answer these questions clearly, you need collateral, margin, guarantees, overcollateralisation, custodians, insurers or clearing houses. Collateral is the price of uncertainty. So if one day you have an infrastructure, a L1, able to verify omnichain and web2/web3 states in real time, then maybe you need less default collateral and less excessive overcollateralization. That’s the real game for tokenization. #Tokenization #RWA #Flare #Blockchain #DeFi #Finance