Technology
The technology behind tokenized assets
General information, in plain words.
The basics
Six terms
01
Blockchain
A blockchain is a digital ledger kept by many computers rather than held in one central place, built so that tampering is visible and resisted, usually without a central authority.
Records are grouped in blocks that are linked in order, so that changing an old record would show in every later block.
02
Public and permissioned
A public (permissionless) blockchain can be joined by anyone; a permissioned blockchain limits who may take part.
03
Smart contract
A smart contract is a computer program stored on a blockchain that runs by the rules written in its code.
04
Token
A token is a unit recorded on a blockchain. A token standard such as ERC-20 defines a common interface, so that tokens can be transferred and approved for spending by a third party in the same way.
05
Wallet
A wallet holds the keys used to sign transactions; whoever controls the keys controls the tokens that belong to them.
06
RWA token
A real-world asset (RWA) token is a token linked to an asset that exists outside the blockchain, such as a commodity.
Ethereum
A public blockchain for smart contracts
Ethereum is a public blockchain that supports smart contracts.
A smart contract is a computer program stored on a blockchain that runs by the rules written in its code.
A token is a unit recorded on a blockchain. A token standard such as ERC-20 defines a common interface, so that tokens can be transferred and approved for spending by a third party in the same way.
Sources: ethereum.org, Smart contracts; EIP-20, ERC-20 Token Standard; read 7 October 2026
Real-world assets
What an RWA token is, and is not
A real-world asset (RWA) token is a token linked to an asset that exists outside the blockchain, such as a commodity.
What is recorded on the blockchain is on-chain. What stays elsewhere, such as the asset, the legal agreements and the inspection documents, is off-chain.
A token that is backed by an asset represents a claim on, or an interest in, that asset only to the extent that the legal documents and the law that applies say so. The token alone does not make its holder the owner.
Further reading
Blockchain, in an official definition
A blockchain is a digital ledger kept by many computers rather than held in one central place, built so that tampering is visible and resisted, usually without a central authority.
Source: NIST IR 8202, Blockchain Technology Overview, October 2018, read 7 October 2026
This page is general information about technology. It is not investment, legal, tax or accounting advice.