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Many people think the RWA problem is solved once the rules are encoded in a smart contract
But thatโs not the case
Smart contracts only lock in execution
They donโt lock in the truth of the inputs
In private credit, the main bottleneck lies in the determination layer:
Who retrieves the data
Who evaluates the covenants
Who verifies the results are valid without exposing sensitive data
If borrower data is still manually pushed by parties with incentives, thatโs not trustless
itโs just trust in new packaging
Whatโs needed isnโt just asset tokenization
but a layer that can produce verifiable truth:
data is retrieved directly
evaluations are run in a confidential environment that can be attested
custom covenants are translated into logic thatโs truly executable
Without that, on-chain private credit is just wrapping old opacity in new rails
immutable rules
unverifiable inputs
thatโs not innovation
thatโs trust with an extra step.
Rialo@RialoHQ
Smart contract enforcement fixes theย rules, but it doesnโt fix theย truth. We need a determination layer that bridges the verification gap while keeping inputs private. @soumeya from Subzero shared a writeup on the complexities of bringing private credit on chain.
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