Smart Contract Structure

The platform is built on a robust framework of modular and interoperable smart contracts, each designed for specific functionalities. These contracts work seamlessly to deliver a secure, compliant, and scalable ecosystem for Real World Asset (RWA) tokenization. Below is a comprehensive overview of each contract, its capabilities, and interactions:

1. Identity Registry (IdentityRegistryV1)

Purpose: Manages decentralized user identities, ensuring verified profiles with compliance and jurisdiction-specific attributes.

Core Features:

  • Identity Registration:

    • Assigns unique profiles to users, including jurisdiction codes, tax domicile, risk scores, and entity categories (e.g., individual, accredited, institutional).

    • Only authorized verifiers can create or update identities.

  • Dynamic Risk Scoring:

    • Risk scores are dynamically adjusted based on jurisdiction and user activity.

    • Compliance officers can update scores to reflect changes in behavior or status.

  • Jurisdiction Management:

    • Enables addition of jurisdictions with predefined risk levels.

    • Ensures operations comply with regional regulations.

  • Identity Restriction:

    • Administrators can restrict or blacklist accounts for non-compliance or suspicious activities.

Processes:

  1. Registration: Authorized verifiers register users with jurisdiction-specific data.

  2. Validation: Compliance modules ensure users are active and compliant.

  3. Updates: Risk levels or credentials are dynamically updated based on activity.

2. Claim Registry (ClaimRegistryV1)

Purpose: Manages the issuance, validation, and lifecycle of compliance claims like KYC and AML certifications.

Core Features:

  • Claim Issuance:

    • Claims are issued by entities with the CLAIM_ISSUER_ROLE.

    • Attributes include type, issuer, cryptographic proof hash, and expiration date.

  • Claim Validation:

    • Ensures claims are valid, authorized, and within their validity period.

  • Claim Revocation & Renewal:

    • Claims can be revoked or renewed to reflect updated compliance statuses.

  • Standardized Claim Types:

    • Predefined claim types (e.g., KYC, AML) ensure compatibility across modules.

Processes:

  1. Creation: Authorized issuers generate claims linked to user identities.

  2. Verification: Compliance modules validate user claims.

  3. Revocation or Renewal: Claims are updated based on user compliance.

3. Compliance Module (ComplianceV1)

Purpose: Enforces regulatory requirements for all participants and transactions.

Core Features:

  • Compliance Rules Management:

    • Administrators define compliance requirements for participation.

    • Rules are dynamically updated to reflect evolving regulations.

  • Validation Framework:

    • Aggregates data from Identity and Claim Registries to assess compliance.

    • Blocks non-compliant users from participating in transactions.

  • Dynamic Enforcement:

    • Validates user compliance during operations like transfers or withdrawals.

Processes:

  1. Rule Definition: Compliance rules specify mandatory claims for jurisdictions.

  2. Validation: Ensures transactions meet compliance criteria.

4. Cryptography Engine

Purpose: Provides advanced cryptographic security and privacy for sensitive operations.

Core Features:

  • Homomorphic Encryption:

    • Enables operations on encrypted balances without revealing sensitive data.

  • Signature Validation:

    • Verifies ECDSA-based signatures for secure transaction authorization.

  • Encryption Utilities:

    • Facilitates secure data encoding and decoding.

Processes:

  1. Encryption: Sensitive data, such as balances, is encrypted before storage.

  2. Validation: Cryptographic signatures are verified for authenticity.

  3. Decryption: Encrypted data is securely decoded when necessary.

5. Security Token (RWAToken)

Purpose: Represents a compliant security token for RWA tokenization, incorporating encrypted balances, compliance checks, and secure operations.

Core Features:

  • Encrypted Balances & Transfers:

    • Balances and transfers are protected using homomorphic encryption.

  • Compliance Enforcement:

    • Integrated with the ComplianceV1 module for jurisdiction-specific regulations.

  • Access Control & Roles:

    • Admin: Manages compliance and contract configurations.

    • Minter: Authorized to mint new tokens.

    • Burner: Authorized to burn tokens.

  • Account Freezing:

    • Non-compliant accounts can be frozen.

  • Pausable & Upgradeable:

    • Implements emergency halts and supports upgrades.

Processes:

  1. Minting: Tokens are minted post-compliance validation.

  2. Transfer Validation: Ensures sender and recipient compliance.

  3. Burning & Freezing: Tokens can be burned or accounts frozen as needed.

6. MERC3643 Treasury (MERC3643Treasury)

Purpose: Facilitates token purchases and liquidity management for RWA tokenization.

Core Features:

  • Token Whitelisting:

    • Maintains a list of approved tokens for transactions.

  • Purchases with ERC20 Tokens:

    • Supports secure purchases using USDT, with compliance validations.

Processes:

  1. Purchase: Users send USDT, triggering compliance checks before token issuance.

  2. Withdrawal: Administrators manage liquidity by withdrawing USDT.

  3. Signature Validation: Ensures transaction authorization.

This architecture ensures a secure, compliant, and scalable environment for tokenizing real-world assets.

Summary

ZODAX Protocol Components

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