Plume is the innovative Real World Asset Modular Layer 2 Blockchain which simplifies the asset tokenization. Plume's innovative solution called Plume Arc enable users to onboard real world assets onchain in just a few clicks.
Plume Network utilizes Ethereum's ERC-3643 token standard for tokenization of real world assets.
What is ERC-3643 Token Standard?
The ERC3643 protocol is an open-source suite of smart contracts that enables the issuance, management, and transfer of permissioned tokens. Its built-in decentralized identity framework ensures only users meeting pre-defined conditions can become token holders, even on permissionless blockchains.
What's the difference between ERC-20 vs ERC-3643?
The important difference is unlike the ERC-20 token, ERC-3643 is designed to deny transactions or actions if counterparties fail to meet a set of compliance requirements. It enables compliance structures that can be used for regulated assets, like securities, real world assets etc while retaining the standard of ERC-20 functionality.
ERC-3643 token standard paves the way for RWA Tokenization in many ways:-
🔸Asset Representation: A real-world asset can be easily represented on the blockchain and made available for trade.
🔸Legal and Regulatory issues: Real-world assets have specific compliances to meet. Without jurisdictional clarity on blockchain, making their representation legit is debatable. ERC 3643 has helped achieve the same by including a legal mechanism as per jurisdiction to govern the tokenization of assets.
🔸Standardization: RWAs have been missing the standardization, which obstructed their entry into the blockchain space. ERC3643 standards have introduced standardization, which has simplified interoperability across various DeFi protocols.
