# Glossary

**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.


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