Smart Contract Structure

The platform is built on a set of modular and interoperable smart contracts, each serving distinct purposes but seamlessly interacting to provide a secure, compliant, and scalable ecosystem for Real World Asset (RWA) tokenization. Below is a detailed breakdown of each contract, its features, processes, and interactions.

1. Identity Registry (IdentityRegistryV1)

Purpose: Manages decentralized user identities, ensuring each participant has a verified profile with compliance and jurisdiction-specific attributes.

Core Features:

Identity Registration:
- Users are assigned a unique profile containing attributes such as jurisdiction code, tax domicile, risk score, and entity category (e.g., individual, accredited, institutional).
- Only authorized verifiers can register or modify identities.
Dynamic Risk Scoring:
- Risk scores are dynamically calculated based on jurisdiction and user activity.
- Risk levels are updated by compliance officers to reflect changes in a user's status or behavior.
Jurisdiction Management:
- Supports adding jurisdictions with predefined risk levels.
- Ensures operations comply with regional regulations.
Identity Restriction:
- Allows administrators to restrict or blacklist accounts for non-compliance or suspicious activity.

Process:

Registration: Verifiers register a user with jurisdiction-specific data.
Validation: Compliance modules query the registry to ensure the user is active and compliant.
Updates: Risk levels or credentials are updated dynamically based on activity or external factors.

2. Claim Registry (ClaimRegistryV1)

Purpose: Handles the issuance, validation, and lifecycle management of claims like KYC and AML certifications.

Core Features:

Claim Issuance:
- Claims are issued by entities with the CLAIM_ISSUER_ROLE.
- Each claim includes attributes such as claim type, issuer, cryptographic proof hash, and expiration time.
Claim Validation:
- Ensures claims are valid, issued by authorized entities, and within their validity period.
Claim Revocation and Renewal:
- Issuers or administrators can revoke claims if a user fails to maintain compliance.
- Claims can be renewed before expiration, extending their validity.
Standardized Claim Types:
- Predefined claim types (e.g., KYC, AML) ensure uniformity and compatibility across modules.

Process:

Claim Creation: Authorized issuers generate a claim tied to a user’s identity.
Verification: The compliance module queries claims to validate user credentials.
Revocation or Renewal: Claims are updated or revoked based on compliance status.

3. Compliance Module (ComplianceV1)

Purpose: Acts as the enforcement layer, ensuring all participants and transactions adhere to regulatory requirements.

Core Features:

Compliance Rules Management:
- Compliance administrators define the required claims and attributes for user participation.
- Rules can be updated dynamically to adapt to new regulations.
Validation Framework:
- Aggregates data from the Identity and Claim Registries to determine if users meet compliance requirements.
- Prevents non-compliant users from participating in transactions.
Dynamic Enforcement:
- Validates user compliance during operations such as token transfers, purchases, or withdrawals.

Process:

Rule Definition: Compliance rules specify mandatory claims (e.g., KYC) for different jurisdictions.
Validation: Before a transaction, the compliance module checks user identity and claims for adherence to the defined rules.

4. Cryptography Engine (CryptographyEngine)

Purpose: Ensures the security and privacy of sensitive operations through advanced cryptographic methods.

Core Features:

Homomorphic Encryption:
- Allows operations on encrypted balances without exposing sensitive data.
- Supports addition and subtraction directly on encrypted values.
Signature Validation:
- Verifies ECDSA-based signatures for transaction authorization.
- Used in token transfers, minting, and purchase processes.
Encryption Utilities:
- Provides methods for securely encoding and decoding data used in transactions.

Process:

Encryption: Token balances and transaction amounts are encrypted before storage or transmission.
Validation: All signatures are cryptographically validated to ensure authenticity.
Decryption: Encrypted data is decoded when necessary for internal operations.

5. Security Token (RWAToken)

Purpose: The RWAToken contract represents a fully compliant security token designed for RWA tokenization. It integrates features like encrypted balances, compliance checks, and secure token operations.

Core Features:

Encrypted Balances and Transfers:
- Token balances and transfer amounts are encrypted using homomorphic encryption for privacy and confidentiality.
- Mathematical operations on encrypted values allow transfers without exposing sensitive data.
Compliance Enforcement:
- Integrated with the ComplianceV1 contract, all transfers are subject to KYC/AML and jurisdiction-specific regulations.
- Validates compliance for both sender and recipient accounts before executing transfers.
Access Control and Roles:
- Admin Role: Manages compliance, freezing accounts, and contract configurations.
- Minter Role: Authorized to mint new tokens.
- Burner Role: Authorized to burn tokens.
Account Freezing:
- Enables administrators to freeze accounts suspected of malicious activity or non-compliance.
Verification Mechanism:
- Verification is managed through cryptographic signatures.
Pausable and Upgradeable:
- Implements OpenZeppelin's pausability for emergency halts.

Process:

Token Minting: Tokens are minted only after verifying compliance.
Transfer Validation: Each transfer is validated against compliance rules before execution.
Burning and Freezing: Non-compliant accounts can be frozen or tokens burned as required.

6. RWA Token Treasury (RWATokenTreasury)

Purpose: Manages token purchases and liquidity for RWA tokenization.

Core Features:

Token Whitelisting:
- Maintains a list of approved tokens for transactions.
- Ensures only compliant tokens are used.
Purchases with ERC20 tokens:
- Users can purchase security tokens using USDT tokens with cryptographic and compliance validations.
- Validates purchase signatures and ensures secure processing.

Process:

Token Purchase: Users send USDT to the Treasury, which verifies compliance and issues tokens.
Withdrawal: Administrators withdraw USDT to manage liquidity.
Signature Validation: Ensures that purchase and transfer requests are authorized.