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AllianceBlock has submitted a draft proposal for a new ERC token standard. EIP7208 outlines the case for creating a new token type known as ERC-7208. This would provide an interface for on-chain data management that’s suited to handling RWAs. AllianceBlock CEO & Founder Rachid Ajaja is now encouraging the Ethereum community to make their voices heard and join in the debate concerning EIP7208 and the creation of a new token standard.
Better Handling of Blockchain Data
Ethereum Request for Comment (ERC) standards are guidelines and specifications for creating tokens on the Ethereum blockchain. These standards ensure interoperability and compatibility among different tokens and Ethereum-based projects. ERC-7208 has been shared on the Ethereum Magicians website, where full details of the proposal are laid out.
ERC-7208 concerns a set of interfaces known as the On-Chain Data Container (ODC). This “houses both data and metadata and can be modified (mutable), expanded upon (extensible), and integrated with other assets (composable)…As ODCs are mutable, they can be split and merged, fractionalized, and the Properties within them can be attached or detached.”
The Ethereum community reviews ERC proposals and, if accepted, they may become official token standards. With layer1 blockchains such as Bitcoin and Ethereum, it’s essential that new code is introduced only after extensive testing to ensure that it does not deleteriously affect the underlying protocol. For this reason, changes such as the introduction of new ERC token standards are introduced infrequently, and only following extensive consultation. Nevertheless, support for AllianceBlock’s proposal appears strong, with Rachid Ajaja’s post attracting widespread engagement.
A Long Time in the Making
The original proposal for ERC-7208 was filed in June 2021. Since then, it has been open to community discussion, among various other proposals filed by Ethereans who take an active role in developer discussions.
As a primary developer of infrastructure for tokenized markets, AllianceBlock has a deep understanding of the capabilities – and shortcomings – of existing ERC token standards. The blockchain industry has evolved greatly since Ethereum’s token standard framework was first proposed almost a decade ago. Since then, the ERC-20 standard for issuing fungible sub-tokens has been complemented by standards such as ERC-721 for creating NFTs.
If AllianceBlock succeeds in its push to have EIP7208 implemented on Ethereum, it will dramatically expand the use cases for the Ethereum network, as web3 and blockchain evolve to accommodate transfer of data rather than simply value. The primary driver for having EIP7208 is to support the creation of real world assets (RWAs), making it easier for these to be fractionalized and traded onchain.
In 2023, RWAs grew into a multi-billion dollar industry, enabling illiquid assets such as real estate, fine art, and bonds to be tokenized and used to borrow against or as collateral for stablecoin issuance. The creation of a dedicated token standard for handling RWAs on Ethereum will help the network establish itself as the preeminent blockchain for hosting real-world assets.