Question 1

What are real-world assets (RWA) in the context of blockchain?

Accepted Answer

RWA refers to tangible and intangible assets like real estate, securities, or commodities. When tokenized using blockchain, these assets can be represented, traded, or managed on decentralized platforms. They usually combine the benefits of traditional assets with the flexibility and efficiency of blockchain technology.

Question 2

How does ERC3643 differ from other Ethereum standards like ERC20 or ERC721?

Accepted Answer

While ERC20 and ERC721 standards cater to fungible and non-fungible tokens respectively, ERC3643 is tailored for permissioned tokens. This means it's designed to integrate with real-world regulations and compliance requirements, making it ideal for RWA. It provides over 120 functions to offer control and automation, which are crucial for post-issuance operations of security tokens.

Question 3

Why is regulatory compliance so important in the context of tokenizing RWA?

Accepted Answer

Regulatory compliance ensures the legitimacy and security of tokenized assets, and it is a regulatory obligation of token issuers. Without adhering to regulations, there's a risk of legal repercussions, loss of trust, and potential misuse or fraud. Especially with RWA, where assets have real-world implications and values, compliance ensures smooth operation and acceptance by traditional financial institutions.

Question 4

What is ONCHAINID and how does it fit into the ERC3643 standard?

Accepted Answer

ONCHAINID is a blockchain-based identity system. It provides a method to verify and embed digital identities directly on-chain without disclosing any private information, ensuring that investors and participants meet required regulatory checks without compromising their privacy. When coupled with ERC3643, it offers a comprehensive solution where RWA can be tokenized, traded, and managed on public blockchains while adhering to global securities regulations.

Question 5

How do digital identities protect user privacy while ensuring compliance?

Accepted Answer

Digital identities, when embedded on-chain, can anonymize user details while retaining necessary compliance attributes. So, while the specific identity of a user might be protected, their eligibility or permission to transact, based on regulatory requirements, is still verifiable on the blockchain. This ensures both user privacy and regulatory compliance.

Joachim Lebrun , Head of Blockchain at Tokeny

Latest articles by Joachim Lebrun , Head of Blockchain at Tokeny

ERC3643: The Token Standard For Real-World Assets (RWAs)