Appendix: Interoperability Analysis

We provide a cherrypicked list of possible points of contact between ERC-7208 and other tokenization standards and proposals.

ERC-1400 (Security Token Standard): This ERC provides a suite of standard interfaces for issuing/redeeming security tokens, managing their ownership and transfer restrictions, and providing transparency to token holders on how different subsets of their token balance behave with respect to transfer restrictions, rights and obligations. ERC-7208 can enhance ERC-1400 by offering a dynamic and flexible data management architecture. Data Objects enable the storage and modification of on-chain data for security tokens, such as compliance information or ownership details. Assets already issued under ERC-1400 can be wrapped into a Vault Data Object and exposed through any Data Manager interface (including ERC-3643). Additionally, ERC-7208 enablesthe fractionalization of ERC-1400 assets. If the asset is issued through an ERC-1400 Data Manager with native Data Object storage, the integration could lead to more versatile and transparent security token offerings, as a custom Identity Management logic can be embedded within the assets.

EIP-2981 (Royalties): ERC-7208 can complement EIP-2981 as a Data Manager by providing a flexible way to handle royalties. Data Objects can store and manage the low-level storage of royalty information dynamically, independently from the interface used by the end user. This enables a complex royalty structure that can change over time or respond to predefined conditions, like embedding compliance checks and simultaneously exposing multiple interfaces for fractional ownership of the underlying asset. For instance, by leveraging ERC-7208, an individual royalty-based NFT can be traded in a compliant manner, concurrently under both an ERC-721 interface as well as an ERC-20 through the use of Data Managers that delegate their internal storage onto the Data Object.

ERC-3643 (Security Tokens): ERC-3643 defines a Security Token interface for Regulated Exchanges based on ERC-20 token standard. The ERC-7208 can be used for wrapping many tokens (irrespective of their ERC) and adapting their logic to the ERC-3643. Additionally, a Data Object storing native ERC-3643 asset data can be used for improving the compliance logic and enabling the trading of underlying securities simultaneously through multiple interfaces that respond to different regulatory frameworks. Moreover, the separation of the storage enables the logic to implement functionalities that were not initially a part of the original ERC-3643, such as identity-based recovery of assets, role-based access control, the introduction of cross-chain support, etc.

ERC-4337 (Account Abstraction): ERC-7208 can provide a standardized method to store and manage the complex data structures required by abstracted accounts. This can include user preferences, access control lists, recovery options, and other customizable account features. The mutable states of abstracted accounts can be efficiently handled using Data Objects. This, in turn, improves the adaptability and security of abstracted accounts. Additionally, an ERC-7208 implementation supporting meta-transactions and Data Points separated by chain-id can be developed to fully abstract account management across blockchains.

EIP-4626 (Tokenized Vaults): Tokenized Vaults inherit from a single ERC-20 and ERC-2612 for approvals via EIP-712 secp256k1 signatures. ERC-7208 can enhance EIP-4626 by providing a more dynamic data layer for tokenized vaults. Data Objects store information about the assets in the vault, conditions for access, or other relevant data, enabling more nuanced interactions with tokenized vaults. Additionally, the Data Point can store more than a single ERC-20, greatly increasing the capabilities of Tokenized Vaults.

ERC-4907 (Shared Ownership): The integration of ERC-4907 as a Data Manager with ERC-7208 Data Point storage can enhance the rental experience by allowing for additional rental-related data directly on-chain, such as rental terms, user permissions, and other customizable settings which would be self-contained within Data Points and therefore automatically updated as metadata. ERC-4907's rental mechanism complements ERC-7208's ability to manage mutable on-chain data. By combining these two, NFTs can not only be rented out for specific periods but also have their traits or states dynamically managed and updated during the rental period. This combination enhances security and compliance in NFT transactions, particularly for Real World Asset Tokenization. Rental agreements, regulatory compliance, intellectual property, and user rights can be embedded within Data Objects to ensure that the NFT usage adheres to predefined rules.

ERC-7540 (Asynchronous ERC-4626 Tokenized Vaults): ERC-7540 vaults's are focused on asynchronous deposit and redemption. Integrating ERC-7540, either by Wrapping into a Data Object or by exposing an ERC-7208 Data Manager, will facilitate more complex financial products. DeFi products like undercollateralized loans, insurance products, or tokenized stocks often require operations to be handled in a non-instantaneous manner. However, the nature of these products requires adhering to regulatory compliance and identity management solutions. This can easily be achieved by implementing the use of on-chain adapters that enhance the logic while keeping the data secure.