Proof of Interest

Introduction

In the Real-World Assets (RWA) sector, Proof of Interest is a verification mechanism designed to ensure that on-chain tokenized assets accurately and transparently generate and distribute their corresponding off-chain yields. Unlike Proof of Reserve, which focuses on static asset backing, the core of Proof of Interest is the continuous flow of yield.

This mechanism utilizes smart contracts or on-chain oracles to fetch real-time data on off-chain interest or rental income, which is then cryptographically secured and submitted to the blockchain. This allows token holders to verify yield generation and confirm fair distribution at any time. By eliminating the need to trust a centralized entity for interest calculation and distribution, this system significantly enhances the transparency and trustworthiness of RWA assets.

• Ensure Interests with commitments

  • Custody Allocation Commitments represent an innovative approach that leverages hash-locking technology, as depicted in the figure above. This technology is critical for enabling the rapid distribution of both custodial assets and their associated yields.

  • The key advantage of this method is its ability to accelerate the allocation process without compromising asset security. This ensures that assets and yields remain protected while being distributed quickly, striking a crucial balance between efficiency and security in custodial asset management.