Tokenization has become a focal point in the world of Web3, attracting significant investment from major players like BlackRock and JPMorgan. Analysts project a $2 trillion market size for asset tokenization by 2030, with tokenized US treasuries witnessing a 782% market capitalization increase in 2023 alone. Despite its potential benefits in finance, gaming, and beyond, the path to widespread tokenization adoption faces hurdles, primarily due to scalability issues in public blockchains. These challenges, including security vulnerabilities and high gas fees, hinder the efficient and cost-effective tokenization of assets. 'Layer 2' solutions have been proposed to address scalability concerns, but they come with their own limitations. Alternative on-chain minting methods and universal Layer 1 blockchains offer promising avenues for improved scalability and efficiency in tokenization. Overcoming these obstacles is crucial to unlocking the transformative potential of tokenization in various industries and driving digital innovation. Read more AI-generated news on: https://app.chaingpt.org/news