Provenance Blockchain Markers vs ERC3643 Smart Contract Tokens

In the ever-evolving world of blockchain technology, ensuring compliance and security in token transfers is paramount. Provenance Blockchain, a leading purpose-built blockchain for financial services, offers a groundbreaking solution with its Markers or restricted coins - tokens that are implemented directly at the protocol level. Markers resolve the unnecessary counter-party risk, cyber security risk and additional expenses introduced by Smart Contracts.

Let’s explore how Provenance Blockchain stands apart from its counterparts, such as ERC3643 T-Rex tokens running on the Ethereum blockchain.

Enforcing Regulated Exchange Rules Provenance Blockchain restricted Markers (tokens) empower seamless enforcement of regulated exchange rules during the transfer and management of securities. By operating at the protocol level, Provenance Blockchain provides native and robust mechanisms to enable tokens to comply with regulatory standards.

Native ERC20 Compliance In the Provenance Blockchain, ERC20 compliance is native to its underlying architecture built on the cosmos-sdk. This means smoother integration with existing ecosystems, reduced complexity, and enhanced interoperability.

Swift Recovery System In the unfortunate event of an investor losing access, Provenance Blockchain’s recovery system steps in to ensure a secure and hassle-free retrieval process.

Empowering Custom Compliance Rules Provenance Blockchain grants you the power to tailor custom compliance rules. Through smart contract implementation, you gain finer control and flexibility, catering precisely to your unique requirements.

Fine-Grained Token Authority Roles Take charge with Provenance Blockchain’s fine-grained token authority roles. Individual access controls for Mint, Burn, Transfer - these and more are at your fingertips, delivering unparalleled control over your token ecosystem.

Enhanced Wallet Identity Provenance Blockchain’s wallet identity is fortified with KYC and AML capabilities, bolstering security and trust in every transaction.

Universal Wallet Balances With protocol based tokens, wallets have the convienence to view their balance in one location, removing the need to call a smart contract per token, as required by ERC3643.

Token used for Gas and Fees The capability to create protocol-based tokens offers the advantage of paying for gas and fees using those tokens directly. In contrast to ERC3643 transactions that are restricted to using ETH for every transaction. This provides greater flexibility and utility for end users.

Immutable Fix Supply Tokens With the power of Provenance Blockchain’s fine-grained access controls, a token can be created with absolute immutability and a fixed supply. In contrast, with ERC3643, there is always an admin account associated with the token, enabling changes at any time. Therefore, jeopardizing immutability, security, and stability.

Chain Governance Controlled Tokens Tokens can be configured to enable chain governance control, empowering network governance the authority to implement changes to the tokens. This eliminates the need to rely on a third-party authority to manage a token on behalf of the stakeholders, thus providing a decentralized approach to token management.

Note: Provenance Blockchain allows for a smart contract implementation of custom compliance rules for finer control and flexibility.

Unlike ERC3643 T-Rex tokens, which operate as separate smart contracts on the Ethereum blockchain, Provenance Blockchain’s protocol-level implementation ensures seamless and native management of your security tokens. Markers enable financial institutions and fintechs to onboard and operate on blockchain technology in a cheaper, faster, and in a more secure manner.

With over $8B in real-world financial asset value locked on-chain (as of July 2023) and unparalleled compliance enforcement, enhanced security features, and greater flexibility in customizing rules, Provenance Blockchain is the go-to platform for unlocking the true potential of digitally native assets.

For a comprehensive guide on the benefits of WebAssembly (WASM) as the smart contract implementation on Provenance Blockchain, check out our Introductory Guide On EVM vs. WASM.