The creation of the Worldwide Asset eXchange™ (WAX), a decentralized platform that enables anyone to participate in a marketplace for virtual game assets, demonstrates the power of tokenizing in-game items. WAX will reduce transaction costs, create marketplaces for games in which it was not previously possible to transfer assets, and fractionalize player profits from centralized exchanges. Tokenization enables ownership of virtual assets, creating a new, more accessible economy with the potential to expand into physical assets.
Safeguarding the WAX Token and Virtual Asset Bond
One of the biggest challenges to tokenizing assets has been determining how to monitor and ensure tokens on the blockchain remain tied to their asset. WAX’s multi-layered governance approach creates regulatory oversight by token holders themselves. The virtual asset exchange process is conducted through users responsible for transferring items, known as Transfer Agents, their supervisory committees called Guilds, rating systems, and a delegated proof of stake consensus algorithm.