ERC-3643: Revolutionizing or Adding Complexity?

Miłosz Mach

16 Jan 2024
ERC-3643: Revolutionizing or Adding Complexity?

The community's involvement in the research and development of blockchain technology is once again challenging traditional paradigms. As we have previously observed, the tokenization of Real World Assets (RWAs) has faced a multitude of challenges. ERC-3643 approaches the legal sphere with flexibility and the utmost care, facilitating the proficient integration and use of blockchain infrastructure for assets of various kinds. In this article, we will explore the essence and advantages of this standard, along with potential complexities that may be lurking.

ERC-3643 and Overall Considerations

Trust

Transfers of ERC-20 tokens typically follow a specific process on Ethereum Virtual Machine (EVM) blockchains, adhering to the standard ERC-20 implementation. This process includes the initiation, approval, and eventual transfer of the tokens. Normally, KYC (Know Your Customer) and AML (Anti-Money Laundering) checks require integration with external APIs.

ERC-3643 uses a model that necessitates predefined criteria before transfer execution. The standard integrates ONCHAINID, which acts as a smart contract for a digital identity management system. It enables third-party-issued identification certificates and KYC or AML service providers to interact and enforce legislative requirements on the tokens. Linking an investor's wallet to an ONCHAINID represents a significant shift in the security tokens market. Issuers can recover the token balance using the 'recovery' function when necessary. This process involves comparing and validating information with associated off-chain databases.

Usability

ERC-3643's design acknowledges the global scope of blockchain applications and caters to cross-jurisdictional landscapes through modular design. Its architecture features transaction limits, investor qualifications, and geographical restrictions checks. It communicates with existing EVM-compatible systems or ERC-20-based tokens. The strong emphasis on regulations has some implications for investor confidence. Institutional bodies prioritize legal safety and risk management and most likely ERC-3643 fits both rigorous financial policies and a string of assets tokenization demands. It allows for the implementation of multi-level permissions and roles within its token ecosystem. This hierarchical structure adds an extra layer of security, as it controls who can execute specific actions within the token’s life cycle.

ERC-3643 and Artificial Intelligence

The convergence of blockchain technology and Artificial Intelligence (AI) tools heralds a groundbreaking synergy, poised to unlock new capabilities. This triad of technologies intertwines to create a more intelligent, efficient, and secure ecosystem. By integrating AI algorithms with ERC-3643's smart contracts, there is a significant leap in automated decision-making capabilities. AI can analyze vast amounts of data to make informed decisions about token transactions, ensuring compliance, and optimizing operational efficiency. AI's ability to process and analyze complex datasets simplifies intricate processes involved in token management. It enables more nuanced and sophisticated handling of ERC-3643 tokens, catering to a variety of use cases without adding operational complexity. The integration of AI tools can optimize transactional processes within the ERC-3643 framework, enhancing speed and reducing costs.

Closer Outlook

Table 1: Advantages of ERC-3643

Table 2: Potential Challenges in Front of ERC-3643

Wondering how this standard performs against other protocols? We have previously compared the ERC-1400 and ERC-3643 capabilities.

Conclusion

By facilitating a secure and compliant environment for tokenization, ERC-3643 encourages innovation in the digital asset space. It seeks to evolve alongside changing global regulatory jurisdictions. Further enhancements may include more sophisticated mechanisms. Undoubtedly, the TREX protocol remains at the forefront of blockchain technology adaptability, not only limited to intangible assets like intellectual property and patents. From agriculture to entertainment, becoming more deeply integrated into DeFi ecosystems, offering novel investment opportunities. The standard establishes a foundation for growth, although it appears innovative, flexible, and compliance-oriented, it might not be without drawbacks.

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 is ERC-3643 and how does it improve tokenization?

  • ERC-3643 is a standard for tokenizing Real World Assets (RWAs) on blockchain. It integrates with legal frameworks, ensuring secure asset transfers and compliance with regulations like KYC/AML.

How does ERC-3643 address regulatory compliance?

  • ERC-3643 utilizes ONCHAINID for identity verification and regulatory enforcement. It includes features like transaction limits and investor qualifications to meet global regulatory requirements.

What are the main advantages of ERC-3643?

  • ERC-3643 offers enhanced security through multi-level permissions, global applicability, and integration with existing systems. It also enables the integration of blockchain with AI tools for optimized operations.

What challenges might ERC-3643 face?

  • Challenges include regulatory complexity, interoperability with existing systems, and scalability for handling various asset types and transaction volumes.

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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
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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!