After software, Blockchain is devouring the world

More than a decade ago, an article announced that software was changing the world at an unprecedented speed and scale. Since then, we have witnessed the rapid development of the internet, giving birth to numerous companies with a market value exceeding hundreds of billions. Today, this perspective still holds true, as artificial intelligence is reshaping the world in new ways, with some arguing that AI is even consuming software.

However, more than a decade after the birth of blockchain technology, we have finally ushered in the beginning of "Blockchain Devouring the World," and this starting point is the realization of tokenization in the US stock market.

Although tokenization of US stocks is not a new concept, the participants are no longer limited to companies in the pure crypto space, but have expanded to include well-known internet companies. Recently, a well-known online trading platform announced the launch of stock token trading services based on a certain Blockchain network in Europe, and has tokenized part of the equity of unlisted companies, attracting widespread attention in the financial sector.

Currently, the total market capitalization of the global cryptocurrency market is approximately $3.4 trillion, while the total market capitalization of the global stock market is about $135 trillion, a difference of nearly 40 times. In other words, the potential market size for stock tokenization is as high as $135 trillion, and as the market capitalization grows, this upper limit will continue to increase.

Although the current market share of stock tokenization may be less than 0.1%, once it breaks through 3%, it could signify a real explosive growth for the industry. This is precisely the future that emerging trading firms are targeting, and it is the true growth point of Blockchain.

If this trend is realized, the impact brought by blockchain and cryptocurrency may be no less than that of "software eating the world." The next 1-2 years are expected to be a period of rampant growth in this field, with more companies joining the competition, which will also drive traditional financial service companies to transform.

However, stock tokenization is not the end of the Blockchain. A well-known industry figure predicts that the global digital capital market is expected to grow from $20 trillion to $280 trillion, while the digital asset market (excluding Bitcoin) could grow from $1 trillion to $590 trillion.

Currently, we are facing three important turning points: the global demand for stablecoins, the continued growth of on-chain scale for government bonds and money market funds, and the beginning of stock tokenization. These developments collectively point to a possible future - "everything on-chain". Although this vision was proposed many years ago, from the early days of security token offerings to the current on-chain physical assets and stock tokenization, we have finally reached a critical point.

Although this data may seem somewhat unrealistic now, it is as dramatic and seemingly absurd as predicting ten years ago that Bitcoin would reach $100,000. Today, Bitcoin has already surpassed $110,000 and continues to set new historical highs.

In the foreseeable future, Blockchain is reshaping the presentation of assets and the way value is transmitted, while artificial intelligence is transforming the way information is captured and bringing about productivity changes. Both technologies have gone through more than 10 years of latency, from being overlooked to being filled with bubbles, and now perhaps we are on the eve of their true explosion.

It is worth noting that the development backgrounds of these two technologies are remarkably similar, having undergone a decade of accumulation. From initially being obscure, to the bubble expanding, and now to a reassessment of value, it seems that a new technological revolution is brewing.

So, who will become the next important player in the field of stock tokenization? We will wait and see.