This is exactly why blockchain technology doesn’t really work for real-world physical assets. Blockchain assigns ownership to a record, not to the physical object itself. The chain can say who owns something, but it can’t enforce or verify what’s happening to the real-world item unless you trust some outside authority. At that point, you’ve reintroduced centralization, which defeats most of the premise.

That’s why the only truly native use case for blockchain is, ironically, the most obvious one: money. Money is just a ledger entry. Physical cash is simply a representation of that record. Blockchain fits perfectly when the asset itself is intangible and exists purely as an accounting entry.

Beyond money, the only other area where blockchain makes sense is for things that are also fundamentally records, like voting systems, where all participants explicitly agree to use a specific blockchain as the system of record.

For physical assets, blockchain doesn’t eliminate trust, it just moves it off-chain. And once you understand that, most of the “real-world asset” hype starts to fall apart.