Many people say that chain upgrades must be revolutionary and that institutions should overthrow the existing system to start anew. But I don’t see it that way.

Since entering the Layer 1 space in 2018, I’ve taken a reverse approach — instead of forcing institutions to adapt to blockchain, it’s better for the chain to adapt to the existing operational systems, risk control standards, and even those seemingly outdated business processes of institutions. And what’s the result? Leading institutions like NPEX actively seek cooperation.

This reverse adaptation capability is actually hidden in the details. Take PLONK zero-knowledge proofs as an example — we don’t implement a unified standard framework, but instead flexibly adjust encryption granularity based on each institution’s privacy protection needs. Some industries require strict information disclosure standards, while others are more relaxed, and the system can precisely adapt. Modular architecture is even more straightforward — the institutions’ original ERP, clearing, and risk control systems are directly integrated, without them having to dismantle existing tools and rebuild from scratch. The on-chain capabilities are seamlessly embedded into existing processes, while also accommodating regulatory requirements like MiCA.

For example, in a securities tokenization project worth over €200 million, we worked with NPEX in this way. Their securities registration and trading reporting processes are already highly refined, so we didn’t suggest starting over. How did we do it? Through interface adaptation, integrating on-chain functions into their existing business logic. Asset rights confirmation and regulatory reporting are all handled according to their familiar procedures, with the only difference being the use of technology to optimize redundant manual steps. The result? Lower costs, and operational habits remain unchanged.

Ultimately, RWA chain upgrades are not about how flashy the technology is, but about how deep the adaptation is. Institutions don’t want a completely new system; they want a tool that can integrate into their current mode and truly reduce costs and increase efficiency. Reverse adaptation may seem like a compromise, but in reality, it’s the most efficient way to implement. This approach not only helps us differentiate in the field but also encourages more institutions to take the first step toward chain upgrades.