Traditional finance and the crypto world have been like parallel lines over the years. If Wall Street is compared to a massive ship, with a complete system but difficult to turn, then the crypto world is like a fleet of speedboats on the open sea—flexible but often directionless. Between the two lies an invisible barrier—liquidity disconnect.

Over the years, many projects have tried to build bridges, but most have only pulled a few weak ropes that snap at the slightest breeze. By 2025, a new technological framework emerges, like opening a real door between the two worlds. Real-world assets (RWA) can finally flow smoothly into the decentralized finance space.

But there is a key difference. Many so-called RWA projects are actually quite crude—simply slicing US bonds or real estate into tokens and hanging them on the chain. That’s just uploading a photo, while what truly needs to be done is to convert the "value attributes" of the assets themselves into digital form. That’s the core issue.

From a technical perspective, the new generation of solutions adopts a mechanism we can call a "smart filtration membrane." Under traditional methods, real-world assets entering the crypto domain face three major hurdles: compliance issues, liquidation difficulty, and oracle delays. The new approach addresses these by introducing a zero-knowledge proof-based identity verification system. The brilliance of this system lies in its ability to verify identities while protecting privacy, without exposing sensitive information.

In other words, the entire chain of asset ownership confirmation, valuation, and liquidity release, which previously required multiple intermediaries layer by layer, can now operate automatically on the chain. This change is not just a technical upgrade but a fundamental shift in the game rules itself.