The Computable Economy: Unlocking a New Era of Wealth and Coordination
Web3 technologies and the tokenization of real-world assets (RWAs) are laying the foundation for a computable economy—a revolutionary new economic system that could unlock trillions in value, according to Justin Banon, co-founder of Boson Protocol.
By integrating RWAs like luxury goods into the blockchain ecosystem, Banon argues that Web3 can overcome the inefficiencies of outdated economic systems and usher in a more inclusive and efficient global economy.
Web3: The Next Leap in Economic Evolution
Each major technological leap in history—rural, industrial, and digital—has brought new wealth and opportunities. However, today’s digital economy faces limitations in sustainability and inclusivity. Banon believes Web3 is the next stage, with tokenization paving the way for an economy where assets can be divided, traded, and utilized globally.
Key benefits of a computable economy include:
- Increased efficiency: Blockchain enables trustless transactions, automating processes and eliminating intermediaries.
- Improved transparency: Transactions are immutable and verifiable.
- Broader accessibility: Fractional ownership of assets opens ultra-luxury markets to a wider audience.
Coordination as the Key to Progress
Throughout history, institutions of social coordination—such as written language or universal time—have catalyzed progress. Today, blockchain and Web3 technologies represent the next leap in coordination by enabling decentralized trust and interoperability.
“Crypto technologies allow elements of the economy to ‘talk’ to each other without intermediaries and verify who and what they are with certainty,” Banon writes.
By enforcing hard property rights and automating commitments, blockchain transforms unreliable systems into deterministic ones, enabling greater scalability and complexity in global economies.
Solving the Physical Asset Oracle Problem
Tokenizing RWAs, like luxury goods, presents challenges. Existing protocols often rely on IOUs, which are vulnerable to off-chain risks. Banon calls for “hard tokenization”—a system that mirrors the robust reliability of blockchain-native assets.
“Only by hard tokenizing RWAs will we accelerate the transition to a computable economy,” Banon explains.
Luxury Goods as Early Adopters
The fashion and luxury sectors are emerging as leaders in adopting tokenization:
- Current challenges: The luxury market faces economic uncertainty, rising prices, and shifting consumer preferences, particularly among younger generations.
- Fractional ownership: Tokenizing high-value items like jewelry or art allows consumers to purchase fractions of these assets, transforming ownership models.
- New revenue streams: Brands gain access to global audiences and create new direct-to-consumer markets for ultra-luxury assets.
For example, fractionalized luxury items can be traded or used as collateral in decentralized finance (DeFi), unlocking liquidity and utility.
A New Operating System for the Economy
Banon envisions tokenization as the backbone of the next crypto bull run, transferring trillions of dollars in value into the blockchain economy. Beyond wealth creation, a computable economic system has the potential to address humanity’s greatest challenges, from achieving sustainability to securing interplanetary survival.
“An upgraded metasystem offers the prospect of extraordinary human achievements currently beyond our reach or imagination,” Banon concludes.
The Road Ahead
The luxury sector’s adoption of Web3 is just the beginning. As more industries integrate tokenization, the computable economy could redefine global coordination, opening new avenues for wealth creation, innovation, and problem-solving.
The question now is whether today’s stakeholders can act quickly enough to seize the opportunity and shape the future of a more inclusive and sustainable economic order.
