Blockchain based System and Method for Multi- Form Gold Tokenization using ERC-1155 Token Standard

Abstract

The blockchain based system and method for multi-form gold tokenization by using ERC-1155 token standard focuses on a single core idea of using ERC-1155 semi fungible tokens to enable scalable and trustworthy digital gold markets that simultaneously serve institutional reserve holders and retail fractional owners. This research presents the ERC-1155 token model tailored for gold assets semantics defined conversion rules between reserve classes and fractional units and describing contract interfaces required for custody aware issuance and secure redemption and also by providing a reference implementation (smart contract + client DApp). The implementation on public Ethereum test nets is evaluated to measure operational characteristics of the ERC-1155 token standard. The study also discusses governance and custody considerations necessary to make ERC-1155 based gold tokenization practical. Results show that a single ERC-1155 contract can express both fungible fractions and non-fungible reserve classes while being computationally inexpensive and is 13.6% more relatively efficient when it comes to burning operation while it is 0.63% more relatively efficient when it comes to minting operation when compared with the same operations that makes use of ERC-721 token standard.