WAX or the Worldwide Asset eXchange was created by Malcolm Casselle as a decentralized platform. Now anyone can participate in this virtual marketplace. This gives access to the virtual game assets, besides tokenizing several in-game items.
Malcolm Casselle states the benefits of using WAX. It helps to reduce the transaction costs. Besides, now a marketplace has been created for those games in which the transfer of assets was not possible earlier. Now player profits can be fractionalized from such kind of centralized exchanges. Due to tokenization, it becomes possible to own virtual assets. This helps in creating a new economy that is more accessible. In addition, it has the potential of getting expanded into the physical assets too.
Malcolm Casselle states that a big challenge faced while tokenizing assets was to determine its monitoring. This is done to make sure that any tokens that are sent on this blockchain remain true to the relevant assets only. This is where the multiple layered governance approaches of WAX helps in creating regulatory oversight that can be taken by the token holders. This is an asset exchange process being done virtually. It is conducted by those users who are responsible for the transferring of these items. These users are also known as Transfer Agents. They would be under a supervisory committee that is called a Guild. Next, there would be rating systems. In addition, there would be a proof of the assets of the transaction through a consensus algorithm.
In case Transfer Agents do not perform their duties properly, it is the reputation as well as the financial stake of the Guild that will be at stake. In case these Guilds are not taking action against those Transfer Agents who are not performing well, the token holders will not be electing them again in order to govern this game. Hence Malcolm Casselle favors such kind of a feedback loop. This way the WAX tokens will remain connected all the time to their virtual asset.
Now physical assets can be owned fractionally by fans as well as collectors. This is a possibility that has been made possible by WAX.