Nowadays blockchain technology is still gaining traction; it is still very difficult to transfer real-world assets (RWAs), such as real estate, bonds, T-bills, or stock in companies, into the blockchain. Our primary challenge is the complexity of the law. Why? Because traditional financial systems have strict legality concerns and compliance requirements, while blockchains are decentralized and borderless, in such cases the government is quite conscious.
ERC-7518 standard that makes tokenizing real-world assets seamless, compliant, and interoperable. It’s built on ERC-1155; it’s not just another token standard, it’s a regulatory-friendly, cross-chain-ready solution for asset tokenization that can solve the tokenization of real-world assets.
ERC-7518 might change everything. It's built on top of ERC-1155, but it's not a regular multi-token standard. This thing has given X-factor. Security token standard ERC-7518 provides a comprehensive solution for managing compliant real-world asset (RWA) security tokens and extends the adaptable ERC-1155 framework. Because the standard introduces the idea of partitions, each ` representing a distinct partition with its own set of rights, privileges, and compliance rules, it is ideal for semi-fungible asset management. Think of it as ERC-1155 on enhanced utilization. Each token ID becomes a "partition" with its own rules. Want to create tokens for accredited investors only? Done. Need tokens that unlock after 12 months? Easy. Want cross-chain compatibility? Built-in.
Unlike traditional fungible (ERC-20) or non-fungible (ERC-721) tokens, ERC-7518 utilizes a partitioned token model where each tokenId represents a different security asset with specific rights and restrictions.
mapping(uint256 => TokenPartition) public partitions;
struct TokenPartition {
string name;
bytes32 compliance_rules;
uint256 lockPeriod;
bool transferRestricted;
mapping(address => uint256) lockedBalances;
}
This enables:
Tokens can adjust to various regulatory requirements thanks to ERC-7518's direct integration of compliance enforcement into its smart contract logic.Features of the protocol include: