Main Points:
- Traditional infrastructure investments in the U.S. are struggling to close the gap in broadband access.
- The Affordable Connectivity Program is facing challenges, while private internet projects are stalling due to high interest rates.
- Real-World Assets (RWA) on blockchain could provide a solution, particularly in sectors like telecommunications and energy.
- Blockchain technology can revolutionize infrastructure financing through “Liquid Infrastructure” by offering transparency, flexibility, and risk mitigation.
- RWA projects are expected to grow into a $13 trillion market by 2030, according to Boston Consulting Group.
The Struggles of Broadband Expansion
Despite significant efforts to modernize infrastructure in the U.S., broadband access remains a critical issue, with about 25% of Americans still lacking access to high-speed internet. The Federal Government’s Affordable Connectivity Program promised affordable, fast internet to all, but the program faces potential termination, leaving many without viable alternatives.
Private sector internet projects, once seen as a potential solution, have also faltered. High interest rates and economic challenges have caused many projects to stagnate, leading to bankruptcies and closures. For millions of Americans, affordable and reliable broadband options are rapidly disappearing.
RWA as a Game Changer for Infrastructure
The concept of Real-World Assets (RWA) has gained traction within the blockchain space as a way to tokenize physical and financial assets on the blockchain. This allows for more transparent, efficient, and secure asset management, trading, and ownership.
While skepticism around cryptocurrencies persists, the underlying technology offers promising potential, especially when applied to real-world infrastructure. A recent report from Boston Consulting Group forecasts that the RWA sector could grow into a $13 trillion market by 2030, emphasizing the immense opportunity for this emerging technology.
Liquid Infrastructure: The Future of Telecommunications
Liquid Infrastructure leverages blockchain’s programmability and transparency to fund and manage utility networks, such as telecommunications, in a more efficient and decentralized manner. By removing barriers to capital access, it allows small investors and communities to directly participate in building the infrastructure they need.
Through smart contracts and on-chain transparency, Liquid Infrastructure supports automated machine-to-machine (M2M) payments, enabling dynamic pricing and real-time settlements. This means that even smaller communities and businesses can participate in infrastructure development, bypassing traditional financing obstacles.
Hawk Networks, the developer behind Althea, has already tokenized much of its wireless network and used the Liquid Infrastructure platform to connect 194 veteran housing units in Phoenix, Arizona. By utilizing blockchain-based payments, multiple participants in the project were able to coordinate funding and construction efforts.
Community-Driven Internet Networks Through RWA
In the case of internet infrastructure, RWA enables communities to build their own fiber-optic networks or leverage satellite broadband services like Starlink to provide connectivity. The CEO of Althea, Deborah Simpier, has seen firsthand how communities from the Arctic to rural America are utilizing blockchain technology to enhance broadband access.
These decentralized networks not only provide access to underserved areas but also offer new ways for communities to govern and control their internet infrastructure. In doing so, they reduce reliance on large, slow-moving telecommunications giants and government programs.
Expanding RWA Benefits Beyond Internet Infrastructure
The potential of RWA extends far beyond telecommunications. The same principles of tokenization and decentralized finance can be applied to other critical sectors, including energy grids and physical infrastructure. By tokenizing energy assets or utility infrastructure, communities can fund and manage these essential services more efficiently.
Liquid Infrastructure is not meant to replace traditional government or private sector efforts. Rather, it aims to fill the gaps that these methods leave behind. As nations strive to address infrastructure deficits, RWA presents a unique opportunity to create more inclusive and equitable frameworks for future development.
Conclusion: RWA’s Role in Shaping the Future of Infrastructure
As governments and private sectors struggle to modernize outdated infrastructure, particularly in broadband and telecommunications, RWA and Liquid Infrastructure offer a promising alternative. By leveraging blockchain technology, these solutions provide new avenues for community-driven projects, decentralizing control and increasing transparency. With predictions of a $13 trillion RWA market by 2030, the future of infrastructure could very well be shaped by these emerging technologies.
