Since the birth of blockchain technology in 2008, the encryption market has experienced rapid development. However, the total market capitalization of the entire crypto market is not as high as the entire market capitalization of Apple so far, and Web3 still lacks practical applications in the real world. However, a new research report from Citibank recently, "Money, Tokens and Games," may change this situation. In the report, Citibank regards real-world asset tokenization (RWA) as the main narrative of the next stage, It is believed that it may have a huge impact on the development of Web3, will promote the blockchain and Web3 industry to have the next billion users, and may bring economic activities in a market of tens of trillions of dollars.

In the big narrative of real-world asset tokenization (RWA), the author of this article, Wanwu Researcher Pinach, believes that the ERC-3525 standard has great potential. This is a semi-homogeneous token (SFT) standard that combines ERC- 20. The combination of the characteristics of ERC-721 and ERC-1155 makes it more effective to represent and manage more complex assets, such as bonds, coupons, invoices, futures, options and ABS. In this way, ERC-3525 has great potential to promote the development of Real World Asset Tokenization (RWA), thereby promoting the wide application of Web3 in the real world.

This article will compare the components of ERC-20, ERC-721, ERC-1155 and ERC-3525 to help you understand the differences between these token standards, and then discuss and understand ERC-3525's digital world modeling ideas from three levels. Finally, looking forward to what areas ERC-3525 deserves attention in the future.

By: Spinach Spinach!

Special thanks to Teacher Satsuma for his careful polishing and optimization of this article

• Table of contents
• Background introduction
• Comparison of existing ERC token standards - how to understand ERC-3525?
• ERC-20
• ERC-721
• ERC-1155
• ERC-3525
• Understanding ERC-3525 from three levels is a digital world modeling idea
• Super NFT that can be split and combined
• Generic number container
• Visual smart contract
• Which ERC-3525 application areas deserve attention in the future?
• Real-world assets on the chain (Real-World Assets, RWA)
• Virtual assets or commodities
• Social, identity and tokenized accounts
• Summarize

Background introduction

Before introducing ERC-3525, let me introduce what EIP and ERC are:

EIP, the full name of Ethereum Improvement Proposals (Ethereum Improvement Proposals), is a framework in the Ethereum community that allows anyone to suggest improvements or updates to the Ethereum network. These proposals can involve the Ethereum protocol itself or be related Client API, or provide relevant standards for other projects in the Ethereum ecosystem.

ERC, the full name of Ethereum Request For Comment (Ethereum Request For Comment), ERC is a special type of EIP, mainly focusing on application-level standards, such as smart contract design patterns, interface definitions, etc. These ERCs usually provide a standard template for Ethereum application developers to ensure that different projects and applications can have a shared interface or standard. Regarding the relationship between the two, in simple terms, all ERCs are EIPs, but EIPs are not necessarily all ERCs. EIPs cover a wider range, including changes in the underlying protocol and so on.

ERC-3525 was created on December 01, 2020. It was designed by the core members of Solv Protocol and supported by the core developers of the Ethereum community. From the initial proposal to the final acceptance by the community, the process lasted 20 months. It was improved through several drafts, and finally officially passed as the ERC token standard in September 2022. As the Ethereum standard created by the core members for the Chinese team, ERC-3525 is also ushering in a new round of attention in the industry. .

Comparison of existing ERC token standards - how to understand ERC-3525?

ERC-3525 is a semi-homogeneous token (SFT) standard. Many people who understand ERC-3525 for the first time may think that this is a seam of ERC-20 and ERC-721, but in fact ERC-3525 is A cornerstone universal standard that even has overwhelming advantages over ERC-20, ERC-721 and ERC-1155 in some areas, and then we will compare the key components of other token standards (the key components are ignored Name, symbol and other attributes) and the advantages and disadvantages to help everyone understand ERC-3525.

Image source: solv.finance PPT

ERC-20

ERC-20 is one of the most widely used token standards in Ethereum, that is, homogeneous tokens, which means that each token is equal in function and value without any difference. That's why they are called "homogeneous". Stablecoins are an important example of ERC-20 applications. Each stablecoin is homogeneous and interchangeable, representing the same value.

Key components: address and value, address is the address of the specified asset owner, and value represents the number of tokens owned by the address. Under the ERC-20 standard, each address (Address) can be associated with a balance (Value). The balance represents the amount of tokens held by this address, and all balances are the same without distinction.

Feature advantages: ERC-20 tokens correspond to interchangeable assets, just like traditional currencies or shares, which makes ERC-20 very useful in many applications, such as representing shares in companies or as decentralized exchanges Exchange (DEX) trading pairs. ERC-20 is also widely used in DeFi applications, such as lending platforms and liquidity mining, and ERC-20 can be split into non-integer numbers, and you can own 0.5 ERC-20 tokens.

Limitations: Since ERC-20 tokens are fully fungible, this prevents them from being used to represent unique or non-fungible assets, such as artwork or collectibles.

ERC-721

When it comes to ERC-721, we have to mention non-fungible tokens (NFT, Non-Fungible Tokens). Well-known NFTs such as Boring Ape and Azuki that we are familiar with all belong to the ERC-721 standard, which describes non-fungible tokens. How tokens should be created and managed on the Ethereum blockchain.

Unlike ERC-20 tokens, where each unit is equivalent, each unit of ERC-721 tokens is unique and non-fungible, making them ideal for representing unique digital or real-world assets (such as artwork , real estate, collectibles, etc.). The earliest NFT CryptoPunk was not the ERC-721 standard, but the ERC-20 standard, but the emergence of CryptoPunk prompted the birth of ERC-721, which became the cornerstone of many valuable applications such as NFT.

Key components: tokenId and owner. tokenId is a unique identifier used to distinguish different ERC-721 tokens, and owner is the address of the token owner. Under the ERC-721 standard, each token is different and unique, determined by the attribute ID to distinguish, and each ID is associated with an owner.

Features and advantages: ERC-721 tokens are non-homogeneous, and each token is unique. This makes them ideal for representing unique objects or assets such as works of art, collectibles, real estate, or other unique assets. This also makes them valuable for creating and trading digital art and other unique digital assets.

Limitations: Due to the non-homogeneous nature of ERC-721 tokens, they cannot be effectively used to represent interchangeable assets, such as currencies or shares, and lack advantages in liquidity, poor composability and indivisibility. You cannot own 0.5 ERC-721 tokens.

ERC-1155

ERC-1155 is a multi-instance token standard that combines the features of ERC-20 and ERC-721, designed to handle multiple different types of tokens more efficiently and flexibly. In the previous ERC-20 and ERC-721 standards, each different token required deploying a new smart contract. This means that if you want to create new tokens, you need to deploy new contracts, which can lead to duplicate code and expensive gas fees. Moreover, complex interactions between different contracts may need to be dealt with.

ERC-1155 provides a way to manage multiple tokens in a single smart contract, each token can be fungible (like ERC-20 tokens) or non-fungible (like ERC-721 tokens) , for example, in a game, you can use ERC-1155 to create different types of weapons (non-homogeneous) such as sticks, knives, and guns, and each weapon under each type of weapon (non-homogeneous) is the same Homogeneous, No. 1 knife and No. 10 knife are exactly the same (homogeneous), but the knife and gun are not the same (non-homogeneous).

Key components: id, value and owner. id is a unique identifier used to distinguish different ERC-1155 tokens, value represents the number of tokens with a specific id, owner is the address of the token owner, using the example of weapons, different types of weapons represent Different IDs, and the number of weapons under each weapon type (ID) is the Value, and the weapons (Value) under each type are the same.

Feature advantage: ERC-1155 tokens can represent both fungible and non-fungible assets, making them useful in a range of applications. For example, a game might use ERC-1155 tokens to represent the type of equipment a player has (non-fungible) and the amount of equipment (fungible).

Limitations: While the flexibility of ERC-1155 tokens makes them useful in many situations, this flexibility also makes understanding and implementing ERC-1155 potentially more complex than ERC-20 or ERC-721 and does not represent Assets that can be partially exchanged, such as bonds or futures, and cannot be split by non-integer numbers, you cannot own 0.5 ERC-1155 tokens.

ERC-3525

ERC-3525 is a semi-fungible token (SFT, Semi-fungible Token) standard, which combines the characteristics of ERC-20, ERC-721 and ERC-1155. Compared with ERC-1155, it is more complicated, but Can be used to express and manage complex digital financial assets, such as securities, bonds, options, futures, swaps, insurance strategies, etc. Compared with other token standards, ERC-3525 represents a digital world The modeling idea can be understood from three levels: Super NFT that can be split and combined, general digital container, and visualized smart contract.

Key components: id, value, Slot and Address. Each SFT has an id attribute equivalent to ERC-721 to identify it as a globally unique entity, so that SFTs can be transferred and approved between addresses in an ERC-721 compatible manner. In addition, each token also contains a value attribute, which represents the quantitative nature of the token, similar to the "balance" attribute of ERC-20 tokens.

Address represents the address with Slot and ID, and each address can have any number and type of ID and Slot. What is different is the Slot attribute. Values with different IDs of the same Slot can be transferred and interchanged, but cannot be transferred and interchanged between different Slots. A Slot can have many kinds of IDs, and different IDs There can only be one Slot.

The focus of ERC-3525 is Slot. Simply put, Slot represents a category. There will be many IDs under the same Slot. Although each ID is different and has its own Value, different IDs under the same Slot It can be regarded as the same interchangeable combination split. Take the membership card as an example. Suppose the membership card has two slots, namely KFC and McDonald's. Each KFC and McDonald's membership card has a different ID, which represents the membership of different people. Cards such as Satoshi Nakamoto's card and V God's card, and everyone's membership card has a Value to represent one of his points.

Take the membership card as an example, assuming that the membership card has two slots, namely KFC and McDonald’s, each KFC and McDonald’s membership card has a different ID, which represents the membership card of different people, such as Satoshi Nakamoto’s card and V God’s card, And everyone's membership card has a Value to represent one of his points.

Then under the same Slot, that is, in the KFC membership card, the points in the Satoshi Nakamoto card and the points in the V God card are regarded as the same thing. For the points sent by the V god card, Satoshi Nakamoto can also split the points in his own point card into a main card and a secondary card (two different IDs, and assign points Value arbitrarily), or he can split the points in the main card and secondary card Merge back.

In different slots, since KFC and McDonald's are two different companies, there is no way for KFC's points to be transferred to McDonald's point card, and naturally there is no transferable, exchangeable and interchangeable value between Value and ID. Combination.

Features and advantages: Due to its more complex structure, ERC-3525 can be used to represent various complex digital structures such as securities, bonds, options, futures, swaps, insurance policies, membership cards, etc. In addition, because it is a semi-homogeneous token, each token can have its own characteristics and rules, making this standard very flexible and powerful, and due to the existence of Slot, ERC-3525 can realize the transfer from ID to ID , just like Satoshi Nakamoto’s point card transferred to V God’s point card, and it can also support non-integer splitting and combination.

Limitations: The complex structure of ERC-3525 leads to a high threshold for understanding. Due to the existence of Slot, there are more centralized features in the technical structure. It is more difficult to develop.

Understanding ERC-3525 from three levels is a digital world modeling idea

Due to its more complex structure compared to other token standards, ERC-3525, as a universal token standard, can create various complex token structures in the digital world through the composability of its data structure Ability, just like using Lego blocks to create various complex models in the real world, it can be said that ERC-3525 represents a digital world modeling idea. To understand ERC-3525 in depth, it can be understood from three aspects: Detachable Combined super NFT, universal digital container, and visualized smart contract.

Super NFT that can be split and combined:

ERC-3525 can simultaneously express the three token standards of ERC-20, ERC-721 and ERC-1155 only by converting its attributes, for example:

**Express ERC-20: **Slot is the same, and the Value in the case of only one ID can represent homogeneous tokens

**Express ERC-721: **Slot is different, only one ID can represent non-homogeneous tokens

**Express ERC-1155: **Slots are different, with multiple different IDs, it can represent multi-instance tokens

But ERC-3525 is more than that. On top of this, ERC-3525 can realize the splitting of non-homogeneous tokens. For example, a boring ape can be split into several shares in a real sense instead of going through an additional contract. Realize NFT fragmentation. For most people who learn about ERC-3525 for the first time, the general understanding may be that ERC-3525 is understood as a super NFT that can be split and combined. There is no problem in understanding ERC-3525 at this level, but This is just the tip of the iceberg and does not give a good understanding of the greater potential of ERC-3525.

Generic number container:

To understand that ERC-3525 is a layer of general digital containers, you need to understand that ERC-3525 is an account abstraction (Account Abstraction). As mentioned above, in the case of membership cards, ERC-3525 can realize the conversion between ID and ID. The transfer, its internal ID is essentially an account, which has the functions of receiving, storing and sending, just like a basket full of various digital assets. Since ERC-3525 is an abstract account, it means that we can separate and decouple the operation authority of an ID in a slot, and grant it to other wallet addresses, not just the owner of this ERC-3525 smart contract.

The difference between the account abstraction of ERC-3525 and the account abstraction of ERC-4337 is that ERC-4337 decouples the signing rights and ownership of smart contract wallets and can use custom signature methods for operations, such as implementing traditional account password operations wallets, etc. etc., while the account abstraction of ERC-3525 still relies on the EOA wallet account (the wallet operated by the private key) to operate, and an ID can only receive assets under the same Slot.

If the ID of ERC-3525 is understood as an account with receiving, storing and sending functions, it means that it can be used as a container for digital assets, and any digital asset can be poured into this universal digital container as a solution to become a A uniform solution. At this time, the Value of this ID becomes a share of a basket of assets.

To give an example, in a Slot, container A (ID: A) is poured with 100 bitcoins and 10 ethereum, then bitcoin and ethereum will become a uniform solution after entering the container as a solution , if the Value of container A is evenly divided into ten parts, then each divided container will also have 10 Bitcoins and 1 Ethereum.

At this time, if the container is to be combined with another container (100 Doge) with a solution of different components, the solution in the new container represents 10 Bitcoins, 1 Ethereum and 100 Doge, and this container can also be Continue to split and combine, and the solution (Value) inside represents the share of this basket of assets.

Once you understand this level, you can feel the magic of ERC-3525. Through its complex data structure and flexible composability, you can create countless complex token structures in the digital world, just like Russian nesting dolls Similarly, many layers of assets can be nested repeatedly in the container, which is very suitable for expressing some structured financial assets such as ABS, MBS, etc.

Visual smart contract:

The meaning of "ERC-3525 as a visual smart contract" is actually not difficult to understand. Similarly, comparing ERC-3525 to a container, it is equivalent to installing a real-time update display on the container, which shows With all the information content and changes in this container, such as what components are contained in the solution (what assets are there and what ratio), the visualization feature can make it easier to manage and more transparent.

Although it only realizes the visualization of a smart contract, it looks very simple, but the meaning behind it is not simple. If the ERC-3525 technology was widely used before 2008, perhaps the financial crisis would not It happened, and it started with one of the fuses of the 2008 financial crisis, which was the chaos of financial derivatives.

After the dot-com bubble burst, the United States launched a loose monetary policy with low interest rates in order to stimulate the economy, and the low interest rates on loans will lead to more people taking out loans. If you have seen a movie called "The Big Short", you should be impressed by the scene in the movie: a person can get a loan from the bank to buy a house in the name of his dog without any collateral, why is this Outrageous situations can happen? Isn't the bank afraid that these people will not pay back the money? In fact, banks are really not afraid, all because there is a financial derivative called MBS.

Mortgage-Backed Securities (MBS) are asset-backed securities whose income stream is derived from a pool of mortgage assets, such as residential or commercial mortgages. These loans are packaged and sold by loan providers (such as banks) to special purpose entities (SPEs), which in turn convert them into securities that can be sold to investors.

This method of operation essentially packages a group of mortgage loans into a new financial product and sells it to investors. For banks, this operation can transfer the original loan risk, and obtain cash by selling these packaged mortgages to earn a spread. Those loans rated as high risk, such as those with no income and no collateral, are known as subprime loans. That's why the 2008 financial crisis was dubbed the "subprime crisis" because defaults on many subprime loans led to a collapse in the MBS market.

So since mortgages can be packaged into financial assets, other loans (such as student loans, car loans, and credit card loans) can naturally be packaged into financial assets. Such assets are usually called asset-backed securities (ABS), MBS and ABS. The underlying logic of the income of financial derivatives comes from the interest and principal repaid by the lender. These financial derivatives seem to have high returns, attracting a large number of investors to enter the market, and problems follow.

Under this model in which risks can be transferred, banks only focus on the increase in the number of loans, ignoring the importance of loan quality. Many subprime loans with higher risks are packaged into ABS and MBS. With the popularity of ABS and MBS, Financial institutions even began to create more complex financial derivatives - collateralized debt obligations (CDO).

If ABS and MBS are the financial assets packaged by many loans, then CDO is the financial asset packaged by ABS and MBS, forming more levels of financial products. After packaging assets of different qualities, the diversity of the investment portfolio has been increased, and the priority (lower yield but relatively safer principal in case of default) has been set. Different repayment levels can theoretically increase the overall stability of the investment portfolio and obtain a better Sharpe ratio (risk-benefit ratio).

However, such complex financial products have made investors' understanding of their real risks more blurred, and the moral hazard of rating agencies has further aggravated this problem. Risk-rated assets are rated as low-risk, which further increases risk.

In addition, credit default swaps (CDS) and other insurance products will further insure, split, and repackage different levels of CDO, and mix CDS and other assets into the new CDO, which is called synthetic CDO (Synthetic CDO). People have been completely unable to know what assets are behind them because of the nested financial derivatives. Many subprime loans were mixed into many so-called low-risk financial derivatives, and the distorted ratings made high-risk assets matched with extremely low premiums, which were packaged layer by layer and sold to various securities companies for various investments People, the leverage ratio of the entire financial system is rapidly increasing, and it is becoming more and more shaky.

As the U.S. began raising interest rates, the rise in interest rates on loans led many lenders to default. The problem was initially most evident in the subprime loan market, however it quickly spread through the financial markets as subprime loans were packaged in ABS, MBS and even CDOs. Many seemingly high-grade, low-risk financial derivatives suddenly exposed high default risks, and investors knew nothing about the real risks of these derivatives. Market confidence was severely hit, and the financial market experienced a large-scale sell-off. It was one of the main triggers of the 2008 financial crisis.

This situation is caused by the disordered, opaque and overly complex structure of financial markets. However, ERC-3525, a visual smart contract, can just solve this problem. ERC-3525 can realize complex financial derivatives, such as the nesting of ABS, MBS and CDO. More importantly, its visualization features allow people to directly see what components are contained in these complex nested products, which plays an important role in risk control.

Under the scenario of 2008, no matter how complex asset securitization products are, real-time and objective ratings can be calculated based on the yield and default rate of the underlying assets. This increase in transparency, combined with the automatic execution of blockchain smart contracts, improves the security and trust of transactions and prevents the accumulation of systemic risks.

If ERC-3525 had been applied before 2008, every investor and every market participant could clearly understand the specific situation of their investment, and perhaps the crisis of that year would not have happened. It can be seen how important the layer of visualized smart contracts of ERC-3525 is to the asset management of the future real-world asset on-chain (RWA).

Which ERC-3525 application areas deserve attention in the future?

As a super NFT that can be split and combined, a universal digital container, and has the characteristics of a visual smart contract, the core competitiveness of ERC-3525 lies in its ability to achieve incomparable flexibility and composability through data structure conversion. And ultimate transparency and ease of execution through visualization capabilities. This innovative structure gives ERC-3525 great advantages in some areas, including but not limited to:

Real-World Assets (RWA):

For the definition of real world assets (RWA), we can simply understand it as all assets outside the blockchain system, including but not limited to currency, stocks, bonds, commodities, funds and other securities assets, as well as real estate, artwork and Non-securities assets such as collectibles, agriculture, climate assets, and intangible assets such as carbon credits and intellectual property.

According to Citi's latest research report "Money, Tokens and Games", it is estimated that by 2030, as much as $5 trillion in funds may flow to new forms of digital currency, such as central bank digital currency (CBDC) and stable currency, and among them About half of the funds will likely be based on blockchain-based distributed ledger technology. The forecast looks at continued legal and technological innovation, with Real-World Asset Tokenization (RWA) seen as a key driver leading the blockchain industry into a multi-trillion dollar market. In fact, any asset that can be given value, whether it is red wine or financial assets, may be tokenized, with the help of blockchain technology to achieve a substantial increase in liquidity and global transactions.

ERC-3525 has significant advantages in real-world securities assets. As a general-purpose digital container, ERC-3525 can express almost all types of financial assets in the real world. Through the smart contract visualization function, it can clearly reveal the internal structure of these financial assets, greatly improving its transparency, and visualizing risks. presented.

Not only that, in addition to traditional financial assets, ERC-3525 also shows a new possibility in supply chain finance. With its unique attributes, ERC-3525 can tokenize various assets in the supply chain, including raw materials, production equipment, inventory, accounts receivable, etc. The supply chain is one of the major narratives of the blockchain. Spinach cites a practical application case to illustrate the subversion of ERC-3525 in supply chain finance:

In supply chain finance, factoring of accounts receivable is a common business model. It allows companies to sell their accounts receivable to a third party (usually a factoring company) at a certain discounted price, so as to obtain the necessary financing and improve their own cash flow. However, in the traditional supply chain financial model, this factoring service is usually only open to large companies and some reputable small and medium-sized enterprises, and it is often difficult for most small and medium-sized enterprises to enjoy this service.

The root cause of this problem lies in the problem of counterfeiting bills. Small and medium-sized enterprises generally lack sufficient credit support, and investors cannot reasonably control the risks of a large number of small and medium-sized enterprises. As a result, small and medium-sized enterprises generally have financing problems in reality. If small and medium-sized enterprises cannot accept the delayed payment of the account period, it will be difficult to receive orders from large enterprises; but accepting orders from large enterprises will also lead to tight liquidity of enterprises and increase cash. Risk of stream breakage.

Imagine if we tokenized payment notes in this scenario. Through ERC-3525, we can create a pair of accounts: payment account (Payable) and accounts receivable account (Receivable). A payment channel similar to quantum entanglement is formed between the two accounts. As long as the buyer sends money to the payment account, the funds will be automatically distributed to the accounts receivable account through the smart contract. This means that no matter how many accounts receivable are split into, no matter who ends up in their hands, they will be transferred to the accounts receivable account according to a predetermined ratio, which greatly increases the flow of supply chain financial factoring business and composability.

In the traditional supply chain financial factoring business, bill authenticity identification has always been a difficult problem. In Western countries, bills are usually printed by individual companies instead of through a unified channel, which makes it difficult to distinguish the authenticity of the bills. At the same time, it is also difficult for banks to use accounts receivable bills as mortgages, because each mortgage requires two companies to sign a contract to mortgage the rights to the bills, and breach of contract involves the transfer of payment objects. This has greatly hindered most SMEs from carrying out factoring business and financing.

However, the application of blockchain technology can change this situation. Through smart contracts, we can add a confirmation (Confirm) step in the billing process. Once confirmed, a ticket is generated with confirmation signatures from both parties. This ensures that the ticket is generated in a state that has been confirmed by both parties. Considering that the arrears of the due date are actually equivalent to a form of loan provided by the seller to the buyer, if we can effectively solve the problem of the authenticity of the bill, the seller will be able to rely on the buyer's reputation to pay this account receivable at a certain discount Rates are sold to factoring agencies to obtain discounted payments.

For example, if a seller has an account receivable with a face value of 1 million yuan, and the factoring institution is willing to purchase this account at a discount rate of 90%, the seller can immediately obtain a cash flow of 900,000 yuan, No need to wait for buyer's payment. This process essentially accelerates the flow of cash flow by transferring credit risk, which can be realized through ERC-3525 and blockchain technology.

With the traceability and transparency of the blockchain, the automatic execution and verification of smart contracts, and the ease of execution of ERC-3525, we can see that ERC-3525 is widely used in the tokenization of traditional financial assets, especially in supply chain finance. It has significant advantages, but in the RWA track, the widespread application of blockchain technology requires the support of sovereign governments, regulated financial institutions and large companies, but this is also in line with the relatively centralized nature of ERC-3525's technical structure. And with the continuous update and improvement of middleware facilities such as oracle machines, the on-chain of real-world assets will be a big narrative in the future of ERC-3525, which is worthy of continuous attention.

Virtual Assets or Commodities:

In addition to representing financial assets, ERC-3525 can also be used to represent virtual digital goods or items, such as virtual land, upgradeable/combinable game items, virtual membership cards, gift cards, lottery tickets, etc. Among them, virtual land, game props and membership cards are areas worthy of attention. For the existing game props and virtual land system, ERC-3525 shows higher possibility and flexibility, and ERC-3525 is backward compatible ERC-721 standard, which means that all protocols, platforms and wallets that support the ERC-721 standard will be easier to integrate ERC-3525, which has the potential to show higher reliability in the combination of future games and blockchains. Playability.

With the launch of the Starbucks Odyssey program, the combination of customer loyalty programs and Web3 has attracted a lot of attention. This can be understood as a point-based membership card system, and Starbucks has the world's leading customer loyalty program, with tens of millions of active members in the United States alone. It is worth noting that membership cards may become a key scenario for Mass Adoption in Web3, which will help attract a large number of users into the Web3 world.

From the earlier cases of KFC and McDonald’s, we can see that the ERC-3525 token standard shows significant advantages in customer loyalty programs. It can realize the collection, transfer, and deposit operations from ID to ID, and its Value can well represent the value of points in the membership card ID. Therefore, ERC-3525 has a high potential in this application scenario, and it may play a greater potential than other token standards in the future. .

Social, Identity and Tokenized Accounts:

Due to the composability of ERC-3525, it can express more data structures, which makes it possible to use semi-homogeneous tokens (SFT) to express social graphs in the current Web3 social field, such as Lens. Advantages over non-fungible tokens (NFT). In addition, using ERC-3525 to realize soul-bound tokens (SBT) can also express more attributes, for example, some specific data can be quantified in SBT, such as the contribution of someone in a certain activity.

In addition, as an account abstraction and digital container, ERC-3525 itself can be regarded as a "wallet". Therefore, in addition to the functions possessed by normal blockchain wallets, ERC-3525 also provides other more imaginative There is room for innovation.

Summarize

As a super NFT that can be split and combined, a universal digital asset container, and a visual smart contract, the positioning of ERC-3525 is not to solve the problem of value creation, but to solve the problem of value packaging. Digital assets can grow a A dynamic, information-rich interface that can be fragmented, merged, packaged, composed, and programmed.

ERC-3525 shows significant advantages in the future trend of Web3. Whether it’s Real World Assets (RWA), customer loyalty programs, or gaming, ERC-3525 has significant potential. Especially in the subdivision of real-world assets such as supply chain finance, ERC-3525 has an overwhelming advantage over other standards. These development directions deserve our continued attention.

At present, ERC-3525 still faces some challenges and resistance:

1. The high complexity leads to a high cognitive threshold, which hinders people's general understanding and acceptance of ERC-3525.

2. ERC-3525 is more difficult to develop than ERC-20, ERC-721 and ERC-1155, and has higher requirements for entrepreneurial teams.

3. The application scenarios of ERC-3525 may involve sovereign governments and centralized guarantee institutions. It belongs to a semi-centralized area, which may conflict with the absolute spirit of decentralization, and its impact on the values of the blockchain world is still unknown.

In any case, it is precisely because ERC-3525 has not yet attracted the attention of the market and has great potential, which makes it more worthy of our close attention. We expect ERC-3525 to play an important role in the mass adoption of Web3 in the future.

Reference：

[1]

[2]

[3]

[4]

[5]

[6]