Glossary

Understand key terms in the Plume ecosystem.

RWA (Real World Asset): Assets that exist in the physical or traditional financial world, such as real estate, commodities, or intellectual property, which are tokenized on the blockchain to increase liquidity, accessibility, and flexibility.

RWAfi: Short for Real World Asset Finance, a DeFi ecosystem focused on trading, earning, and speculating with tokenized RWAs.

Tokenization: The process of converting an asset into a digital token on the blockchain, enabling ownership, trading, and management onchain.

Smart Wallet: A blockchain wallet with programmable functionalities, allowing users to interact with smart contracts, earn yield, and manage digital assets directly from their wallets.

KYC (Know Your Customer): A compliance process used to verify the identity of users in alignment with regulatory requirements.

AML (Anti-Money Laundering): Regulatory processes and practices used to prevent money laundering and fraudulent activities in financial transactions.

Liquidity: The ability to buy, sell, or trade an asset without significantly affecting its price; high liquidity means assets can be traded quickly and easily.

DeFi (Decentralized Finance): Financial applications built on blockchain that allow users to borrow, lend, trade, and earn interest without traditional intermediaries.

Plume Devnet: A sandbox testing environment for developers to experiment with and build RWA solutions on the Plume platform before moving to mainnet.

Mainnet: The fully deployed version of a blockchain network, where actual transactions and applications are live and operational.