TokenID

Extending blockchain tokens with Off-Chain Metadata

Abstract:

This paper introduces TokenID, a proposal to improve decentralized tokens with the integration of off-chain metadata. TokenID generates an API service that provides digitally signed JSON data; enabling various integration possibilities for crypto projects. By incorporating off-chain metadata; TokenID increases security, ensures transparency, trustworthiness, and seamless interactions within the token ecosystem. The signed JSON structure facilitates standardized data representation, enhancing compatibility with third-party platforms; while making data updates easy and secure.

Introduction

In the blockchain landscape, the need to verify token authenticity and ensure transparent metadata has become increasingly vital. TokenID addresses this challenge by extending token standards with off-chain metadata, secure metadata updates, multi-chain compatibility, and signed JSON data; that offer homogeneous data independently of the host blockchain. These features provide users with comprehensive, verifiable token information, fostering trust, transparency, and streamlined interactions within the token ecosystem.

Off-Chain Metadata, Multi-Chain Compatibility, and signed JSON data

Storing metadata directly on the blockchain has inherent limitations. It confines the data to the blockchain's local domain, limiting its accessibility and adaptability. Moreover, on-chain storage leads to increased transaction costs and blockchain size, and it imposes restrictions on the size and complexity of metadata.. In contrast, off-chain storage offers advantages such as easier adaptation to emerging token standards, efficient updates, and the ability to maintain integrity and security while overcoming the limitations of on-chain storage.

2.1 Trustworthiness Verification

Ensuring token legitimacy and trustworthiness requires additional verification mechanisms beyond the blockchain. The integration of off-chain metadata provides an extra layer of transparency, empowering users to assess a token's authenticity and trustworthiness.

2.2 Support for New Token Standards

TokenID is designed to accommodate the evolving blockchain landscape and supports the seamless integration of new token standards. By adopting an off-chain approach for metadata storage, TokenID can adapt to emerging token standards without requiring extensive modifications to the underlying infrastructure.

2.3 Multi-Chain Compatibility

TokenID simplifies the process of reading data from different types of blockchains by providing a unified solution. Instead of relying on different libraries and complex code dependencies, TokenID enables the inclusion of tokens from various blockchains, promoting interoperability. Additionally, by including multiple representations of the same token across chains, TokenID enhances transparency and security. Through a single API service, the ecosystem can easily access token metadata for tokens deployed on different blockchains, facilitating seamless interaction. The metadata remains independent of the underlying token technology, creating a homogeneous dataset that is accessible and consistent across multiple chains.

Protocol Overview: Off-Chain Metadata Integration, Secure Metadata Updates, and JSON Structure

3.1 API Service Architecture

TokenID generates an open-source API service as a gateway for accessing off-chain metadata. Standardized API calls allows querying applications to request token-specific information, that can be independently verified.

3.2 Token Owner Access and Secure Metadata Updates

3.2.1 Secure Metadata Updates

Token owners can securely update their token's metadata by providing a newly signed message of the JSON data structure containing the metadata. This ensures that metadata remains up to date and accurate, enhancing trust and transparency within the token ecosystem; while also maintaining the token's keys secure. By utilizing cryptographic mechanisms, token owners can securely authenticate themselves without relying on traditional less secure methods.

3.3 JSON Data Structure

TokenID implements a signed JSON for token metadata. The JSON structure defines key-value pairs to represent essential metadata elements, including blockchain, deployer address, contract address, logo image URL, token description, explorer verification code, social profile links. This standardized format ensures compatibility and facilitates integration with various applications, across multiple chains. The encompassing signature generated by the owner of the token, means the data is trustworthy. Generating the data and its signature is easy, and can be done securely by the token owner without depedence of any third party.

{
"blockChainID": "ethereum",    
"tokenDeployer": "0xabcdef123456789",
"contractAddress": "0x123456789abcdef",
"signatureType": "evm",
"signature": "0xabc123def456...",
"metadata": {
    "description": "MyToken is a decentralized digital currency...",
    "logoUrl": "https://example.com/mytoken-logo.png",
    "codeVerificationUrl": "https://example.com/mytoken-verification",
    "liquidityPoolAddress": "0xabcdef123456789",
    "websiteUrl": "https://example.com/mytoken-website",
    "socialProfiles": {
        "twitter": "https://twitter.com/mytoken"
    }
}
}

Integration with Third-Party Platforms

TokenID offers seamless integration with various third-party platforms, expanding their functionality and enhancing user experiences. The integration possibilities include wallet providers, DEFI services and cryptocurrency information websites.

4.1 Wallet Integration and Comprehensive Token Information

TokenID enables smooth integration with wallet providers, allowing them to display comprehensive token information to users. Wallets can incorporate the JSON metadata obtained through the API service, which includes essential details such as the token description, social profile links, liquidity pool address, and coin logo image URLs. This integration significantly enhances the user experience by providing detailed insights into the token and empowering users with comprehensive information.

4.2 DEFI platforms Integration and Streamlined Trading

DEFI platforms like Uniswap, can leverage the addresses provided in the metadata to access liquidity pool information and facilitate token swaps. By integrating TokenID's metadata into AMM platforms, the trading experience becomes more streamlined and simplified. Users can benefit from the enriched token data and make informed decisions when engaging in token swaps through AMMs.

4.3 Integration with Cryptocurrency Information Websites

TokenID also offers integration opportunities with cryptocurrency information websites such as CoinMarketCap. These websites can leverage the standardized JSON metadata obtained from TokenID to provide accurate and up-to-date token information to their users. By incorporating TokenID's off-chain metadata, these websites enhance the reliability and completeness of the token data they present, fostering trust and facilitating informed decision-making for cryptocurrency enthusiasts.

The integration with third-party platforms, including wallets, AMMs, and cryptocurrency information websites, broadens TokenID's reach, fosters wider adoption, and creates a more robust ecosystem for decentralized tokens. It empowers users with access to verifiable token information across multiple platforms, ultimately driving transparency, trust, and seamless interactions within the token ecosystem.

Enhanced Security

TokenID enhances the security of decentralized tokens and protect users from potential risks. These security enhancements provide a robust foundation for trust and reliability within the token ecosystem. Furthermore, TokenID allows other parties to utilize the data available through its API, enabling them to actively contribute to identifying and addressing potential issues.

5.1 Early Alert of Token Impersonation

One of the key security benefits of TokenID is its ability to provide early alerts for token impersonation attempts. By incorporating off-chain metadata and signature verification, TokenID enables token owners and users to verify the authenticity of tokens more effectively. This helps to identify and prevent potential scams or fraudulent activities by detecting unauthorized tokens attempting to mimic legitimate ones.

5.2 Red Flagging of Suspicious Assets

TokenID also includes mechanisms to red flag suspicious assets within the token ecosystem. Through the signed JSON and integration with third-party platforms, TokenID allows for the identification and monitoring of tokens that exhibit suspicious characteristics. This feature helps users and platform providers to exercise caution when dealing with potentially risky or suspicious tokens, contributing to a safer and more secure token environment.

Conclusion

The TokenID protocol presents a comprehensive solution for enhancing tokens with off-chain metadata, secure metadata updates, multi-chain compatibility and signed JSON.

The resulting cumulative data set allows for a complete representation of the tokens that exists on the wide crypto ecosystem, and is not limited to a single underlaying technology. By incorporating off-chain metadata, TokenID addresses the limitations of on-chain storage, promotes trust, transparency, and seamless interactions within the token ecosystem. The inclusion of a JSON signed by the token deployer's facilitates standardized data representation and enhances metadata authenticity and integrity. Through integration with third-party platforms, TokenID enhances user experiences, security, fosters wider adoption, and paves the way for a new era of tokenization, empowering users with verified and up-to-date token information.

## References: https://www.reddit.com/r/ethereum/comments/146zfj6/why_did_the_erc20_token_standard_not_include/https://eips.ethereum.org/EIPS/eip-20