ERC-1400 vs ERC-3643 – Comparing Token Standards

Miłosz Mach

08 Jan 2024
ERC-1400 vs ERC-3643 – Comparing Token Standards

Imagine a world where the complexities of finance and the ingenuity of blockchain technology converge harmoniously. ERC-1400, a standard that has established rules around securities offerings, and on the other side, ERC-3643 - versatile in broadening technology utilization and tokenization horizons. They are keystones of modern funds management, each with its unique flair and profound implications. As we navigate their nuances, we’ll shed light on their roles, differences, and analogies.

Understanding ERC-1400


Origins and Purpose of ERC-1400

ERC-1400 introduces a standard for security tokens on the Ethereum blockchain. Security tokens, which illustrate digital forms of traditional investment contracts like stocks, bonds, and company shares require a token standard capable of navigating this intricate regulatory environment. The intent was to bring clarity and purified structure to the tokenization of securities, ensuring the process is compliant with existing laws and regulations. Such instruments, in particular, demand a future-thinking approach sticking to the thorough financial legal framework and its progressive traits.

Key Features of ERC-1400

ERC-1400 is characterized by several features that serve the specific needs of security tokens:

Compliance with Financial Regulations

Control and Transparency

Granular Oversight of Transactions empowers issuers with monitored access to token operations, essential for financial compliance and investor trust. The standard enables rules enforcement and qualifications for each transfer. That means all movements of the token adhere to platform operational criteria. The level of legitimacy provided by ERC-1400 supports the credibility of security token offerings, both in the eyes of regulators and institutional investors.

Comparative Analysis: ERC-1400 vs ERC-3643

ERC-1400 and ERC-3643 cater to distinct needs and scenarios. This analysis aims to contrast features, applications, and the different problems they address.

Wondering what is ERC-3643 all about and how it works? Click to learn more in our latest article.

Table 1: Core Characteristics and Use Cases

Table 2: Technical Features and Institutional Adoption

Unifying the Standards

Before exploring the differing attributes, it's important to recognize the familiar ground shared by ERC-1400 and ERC-3643:

Regulatory Compliance Focus

  • Common Goal for Ordinances Implementation: Both standards supervise legal regulatory alignment;
  • Bridging Traditional Finance and Blockchain: They facilitate wider use of blockchain in traditional economic sectors.

Modular Architecture

  • Flexibility and Customization: The solutions inherent in ERC-1400 and ERC-3643 allow developers to influence certain details of the token or adapt features to meet specific needs, from top-down legislation to highly advanced technological refinements;
  • Adaptability for Future Enhancements: This is not only about meeting current essentials but also about paving the way for future enhancement. As per their modular structure, changes can be made without the need for system overhauling, thereby future-proofing the token standards.

Distinctive Features and Differences

While ERC-1400 and ERC-3643 allocate these foundational similarities, they diverge in their purpose, scope, and technical implementations.

ERC-1400: Specialized for Security Tokens

Targeted Use Case

  • ERC-1400 serves the domain of security tokens, which are digital versions of aforementioned stocks or bonds. This standard addresses applicable and potential regulatory challenges associated with their tokenization.

Investor Protection and Financial Compliance

  • It commits to investor protection guaranteeing detailed party verification, and the proper maintenance of holders' rights.

ERC-3643: Broader Scope for Asset Tokenization

Versatile Tokenization

  • Unlike ERC-1400, ERC-3643 accommodates a wide range of assets beyond securities.

Reinforced Token Control 

  • Advanced token behavior patterns provide issuers with a higher degree of customization and control;
  • Optimized gas cost and streamlined contract processes also make it well-suited for high transaction volume and large-scale applications.

Conclusion

The comparative journey through ERC-1400 vs ERC-3643 reveals a harmonious standards coexistence. Together, despite a different purpose, they reflect the dynamic nature of blockchain technology. ERC-1400 and ERC-3643 shape the future of technology, and accordingly, with their introduction, the community has been equipped with a solid fundament to actively participate in any asset digitization.

If you are interested in utilizing ERC-3643 or other blockchain-based solutions for your project, please reach out to contact@nextrope.com

FAQ

What are the key features of ERC-1400?

  • ERC-1400 embeds legal governance into the token lifecycle, ensuring compliance with securities regulations, and provides granular oversight of transactions, enhancing control and transparency.

How do ERC-1400 and ERC-3643 unify standards?

  • Both standards focus on regulatory compliance and bridging traditional finance with blockchain technology. They feature modular architecture, offering flexibility for customization and adaptability for future enhancements.

What is the purpose of ERC-1400 and ERC-3643?

  • ERC-1400 specializes in security tokens, addressing regulatory challenges and ensuring investor protection. ERC-3643 has a broader scope for asset tokenization, providing advanced token control and optimization for high transaction volume applications.

Tagi

Most viewed


Never miss a story

Stay updated about Nextrope news as it happens.

You are subscribed

AI in Real Estate: How Does It Support the Housing Market?

Miłosz Mach

18 Mar 2025
AI in Real Estate: How Does It Support the Housing Market?

The digital transformation is reshaping numerous sectors of the economy, and real estate is no exception. By 2025, AI will no longer be a mere gadget but a powerful tool that facilitates customer interactions, streamlines decision-making processes, and optimizes sales operations. Simultaneously, blockchain technology ensures security, transparency, and scalability in transactions. With this article, we launch a series of publications exploring AI in business, focusing today on the application of artificial intelligence within the real estate industry.

AI vs. Tradition: Key Implementations of AI in Real Estate

Designing, selling, and managing properties—traditional methods are increasingly giving way to data-driven decision-making.

Breakthroughs in Customer Service

AI-powered chatbots and virtual assistants are revolutionizing how companies interact with their customers. These tools handle hundreds of inquiries simultaneously, personalize offers, and guide clients through the purchasing process. Implementing AI agents can lead to higher-quality leads for developers and automate responses to most standard customer queries. However, technical challenges in deploying such systems include:

  • Integration with existing real estate databases: Chatbots must have access to up-to-date listings, prices, and availability.
  • Personalization of communication: Systems must adapt their interactions to individual customer needs.
  • Management of industry-specific knowledge: Chatbots require specialized expertise about local real estate markets.

Advanced Data Analysis

Cognitive AI systems utilize deep learning to analyze complex relationships within the real estate market, such as macroeconomic trends, local zoning plans, and user behavior on social media platforms. Deploying such solutions necessitates:

  • Collecting high-quality historical data.
  • Building infrastructure for real-time data processing.
  • Developing appropriate machine learning models.
  • Continuously monitoring and updating models based on new data.

Intelligent Design

Generative artificial intelligence is revolutionizing architectural design. These advanced algorithms can produce dozens of building design variants that account for site constraints, legal requirements, energy efficiency considerations, and aesthetic preferences.

Optimizing Building Energy Efficiency

Smart building management systems (BMS) leverage AI to optimize energy consumption while maintaining resident comfort. Reinforcement learning algorithms analyze data from temperature, humidity, and air quality sensors to adjust heating, cooling, and ventilation parameters effectively.

Integration of AI with Blockchain in Real Estate

The convergence of AI with blockchain technology opens up new possibilities for the real estate sector. Blockchain is a distributed database where information is stored in immutable "blocks." It ensures transaction security and data transparency while AI analyzes these data points to derive actionable insights. In practice, this means that ownership histories, all transactions, and property modifications are recorded in an unalterable format, with AI aiding in interpreting these records and informing decision-making processes.

AI has the potential to bring significant value to the real estate sector—estimated between $110 billion and $180 billion by experts at McKinsey & Company.

Key development directions over the coming years include:

  • Autonomous negotiation systems: AI agents equipped with game theory strategies capable of conducting complex negotiations.
  • AI in urban planning: Algorithms designed to plan city development and optimize spatial allocation.
  • Property tokenization: Leveraging blockchain technology to divide properties into digital tokens that enable fractional investment opportunities.

Conclusion

For companies today, the question is no longer "if" but "how" to implement AI to maximize benefits and enhance competitiveness. A strategic approach begins with identifying specific business challenges followed by selecting appropriate technologies.

What values could AI potentially bring to your organization?
  • Reduction of operational costs through automation
  • Enhanced customer experience and shorter transaction times
  • Increased accuracy in forecasts and valuations, minimizing business risks
Nextrope Logo

Want to implement AI in your real estate business?

Nextrope specializes in implementing AI and blockchain solutions tailored to specific business needs. Our expertise allows us to:

  • Create intelligent chatbots that serve customers 24/7
  • Implement analytical systems for property valuation
  • Build secure blockchain solutions for real estate transactions
Schedule a free consultation

Or check out other articles from the "AI in Business" series

AI-Driven Frontend Automation: Elevating Developer Productivity to New Heights

Gracjan Prusik

11 Mar 2025
AI-Driven Frontend Automation: Elevating Developer Productivity to New Heights

AI Revolution in the Frontend Developer's Workshop

In today's world, programming without AI support means giving up a powerful tool that radically increases a developer's productivity and efficiency. For the modern developer, AI in frontend automation is not just a curiosity, but a key tool that enhances productivity. From automatically generating components, to refactoring, and testing – AI tools are fundamentally changing our daily work, allowing us to focus on the creative aspects of programming instead of the tedious task of writing repetitive code. In this article, I will show how these tools are most commonly used to work faster, smarter, and with greater satisfaction.

This post kicks off a series dedicated to the use of AI in frontend automation, where we will analyze and discuss specific tools, techniques, and practical use cases of AI that help developers in their everyday tasks.

AI in Frontend Automation – How It Helps with Code Refactoring

One of the most common uses of AI is improving code quality and finding errors. These tools can analyze code and suggest optimizations. As a result, we will be able to write code much faster and significantly reduce the risk of human error.

How AI Saves Us from Frustrating Bugs

Imagine this situation: you spend hours debugging an application, not understanding why data isn't being fetched. Everything seems correct, the syntax is fine, yet something isn't working. Often, the problem lies in small details that are hard to catch when reviewing the code.

Let’s take a look at an example:

function fetchData() {
    fetch("htts://jsonplaceholder.typicode.com/posts")
      .then((response) => response.json())
      .then((data) => console.log(data))
      .catch((error) => console.error(error));
}

At first glance, the code looks correct. However, upon running it, no data is retrieved. Why? There’s a typo in the URL – "htts" instead of "https." This is a classic example of an error that could cost a developer hours of frustrating debugging.

When we ask AI to refactor this code, not only will we receive a more readable version using newer patterns (async/await), but also – and most importantly – AI will automatically detect and fix the typo in the URL:

async function fetchPosts() {
    try {
      const response = await fetch(
        "https://jsonplaceholder.typicode.com/posts"
      );
      const data = await response.json();
      console.log(data);
    } catch (error) {
      console.error(error);
    }
}

How AI in Frontend Automation Speeds Up UI Creation

One of the most obvious applications of AI in frontend development is generating UI components. Tools like GitHub Copilot, ChatGPT, or Claude can generate component code based on a short description or an image provided to them.

With these tools, we can create complex user interfaces in just a few seconds. Generating a complete, functional UI component often takes less than a minute. Furthermore, the generated code is typically error-free, includes appropriate animations, and is fully responsive, adapting to different screen sizes. It is important to describe exactly what we expect.

Here’s a view generated by Claude after entering the request: “Based on the loaded data, display posts. The page should be responsive. The main colors are: #CCFF89, #151515, and #E4E4E4.”

Generated posts view

AI in Code Analysis and Understanding

AI can analyze existing code and help understand it, which is particularly useful in large, complex projects or code written by someone else.

Example: Generating a summary of a function's behavior

Let’s assume we have a function for processing user data, the workings of which we don’t understand at first glance. AI can analyze the code and generate a readable explanation:

function processUserData(users) {
  return users
    .filter(user => user.isActive) // Checks the `isActive` value for each user and keeps only the objects where `isActive` is true
    .map(user => ({ 
      id: user.id, // Retrieves the `id` value from each user object
      name: `${user.firstName} ${user.lastName}`, // Creates a new string by combining `firstName` and `lastName`
      email: user.email.toLowerCase(), // Converts the email address to lowercase
    }));
}

In this case, AI not only summarizes the code's functionality but also breaks down individual operations into easier-to-understand segments.

AI in Frontend Automation – Translations and Error Detection

Every frontend developer knows that programming isn’t just about creatively building interfaces—it also involves many repetitive, tedious tasks. One of these is implementing translations for multilingual applications (i18n). Adding translations for each key in JSON files and then verifying them can be time-consuming and error-prone.

However, AI can significantly speed up this process. Using ChatGPT, DeepSeek, or Claude allows for automatic generation of translations for the user interface, as well as detecting linguistic and stylistic errors.

Example:

We have a translation file in JSON format:

{
  "welcome_message": "Welcome to our application!",
  "logout_button": "Log out",
  "error_message": "Something went wrong. Please try again later."
}

AI can automatically generate its Polish version:

{
  "welcome_message": "Witaj w naszej aplikacji!",
  "logout_button": "Wyloguj się",
  "error_message": "Coś poszło nie tak. Spróbuj ponownie później."
}

Moreover, AI can detect spelling errors or inconsistencies in translations. For example, if one part of the application uses "Log out" and another says "Exit," AI can suggest unifying the terminology.

This type of automation not only saves time but also minimizes the risk of human errors. And this is just one example – AI also assists in generating documentation, writing tests, and optimizing performance, which we will discuss in upcoming articles.

Summary

Artificial intelligence is transforming the way frontend developers work daily. From generating components and refactoring code to detecting errors, automating testing, and documentation—AI significantly accelerates and streamlines the development process. Without these tools, we would lose a lot of valuable time, which we certainly want to avoid.

In the next parts of this series, we will cover topics such as:

Stay tuned to keep up with the latest insights!