Nautilus Chain: Modular Layer3 architecture builds infrastructure for RWA track

After DeFi Summer, the encryption industry has experienced a new round of explosion and growth, but the overall development has gradually stagnated. Traditional finance is a mature market that has been developed for hundreds of years. The continuous introduction of 800 trillion US dollars of traditional finance to the chain is expected to promote a new round of qualitative changes in the encryption industry. Introducing traditional assets into the chain in the form of encrypted tokens (RWA) is being seen as a good entry point, and it is also considered to be one of the important narrative directions for the future development of the encryption industry.

Nautilus Chain, as the first new public chain system with modular Layer3 architecture, is expected to build an early foundation for the development of the RWA track and become an important promoter of this trend.

RWA is becoming the new layout vane

The RWA track is becoming a new vane for the layout of traditional financial institutions, and they look forward to attracting more investors to participate in the way of RWA. From the perspective of traditional Web2 giants, Goldman Sachs announced that its digital asset platform GS DAP is officially launched. GS DAP has helped the European Investment Bank (EIB) issue a two-year digital bond of 100 million euros. Soon after, Hamilton Lane, a private equity firm with a management scale of over 100 billion, tokenized part of its $2.1 billion flagship equity fund on the Polygon network and sold it to investors; million euros in digital bonds. Secondly, some government agencies have also begun to test the waters of RWA, including the Monetary Authority of Singapore (MAS), which will cooperate with JP Morgan Chase and DBS Bank.

In the field of Web3, encryption giants and leading DeFi protocols are also dabbling in the RWA track, hoping to seize the opportunity in the early development of the RWA track. In April of this year, Binance announced that it would become the Polymesh node operator of the Layer 1 blockchain; secondly, DeFi protocols such as MakerDAO, Aave, and Maple Finance are active on the RWA track, and more crypto investment companies are also seeking RWA projects. At present, there are more than 50 projects in the RWA sector, mainly in financial assets, including fixed income, TradFi, and a few in real estate and carbon credit. However, some encrypted tokens with the concept of RWA have performed well in the near future and have been highly concerned by many long-term investors.

RWA track development challenge

The concept of RWA is no stranger to the blockchain industry. At present, the most successful RWAs are the digital dollars USDT and USDC, which map the U.S. dollar to the chain and tokenize it. Stablecoins have subtly affected the entire encryption industry and have become an important cornerstone.

The full name of RWA is the value tokenization of real world assets (real world assets-tokenization), which is the process of converting the ownership value (and any related rights) in tangible or intangible assets into digital tokens. This enables the digital ownership, transfer and storage of assets without a central intermediary, and the value is mapped to the blockchain and traded. RWA can be tangible or intangible assets.

Tangible assets include: real estate, art, precious metals, vehicles, sports clubs, horse races, etc.

Intangible assets include: stocks and bonds, intellectual property, investment funds, synthetic assets, revenue-sharing agreements, cash, accounts receivable, and more.

At present, from the perspective of the main practice, in the field of RWA, there are currently three main types of this track, including fixed-income projects based on off-chain assets such as U.S. bonds, stocks, real estate, and artworks; public credit projects based on open market issuance or transactions Projects; trading market projects based on virtual assets such as carbon credits. At this stage, the first two types of RWA are mostly.

Of course, there are still some problems that need to be solved in the long-term development of the RWA track. On the one hand, it includes the degree of perfection of the blockchain infrastructure, and on the other hand, it is the degree of supervision and compliance.

The RWA facility is built on the blockchain, so whether it can provide traditional traders with a better trading experience than CeFi, ensure the security of users' assets, and be able to perfectly carry large-scale users is becoming a test. In addition, the RWA token issuer also needs to have good operability and flexibility, such as having the dual characteristics of ERC-721 and ERC-20.

On the other hand, RWA needs a high degree of support from regulations and compliance policies. For RWA issuers and investors, it is important to conduct due diligence on DeFi agreements, and choose to give priority to secured loans and provide strict regulatory compliance A technology or service that is unique and built using high-quality open source code. Therefore, the blockchain itself needs to provide further technical support in terms of compliance and privacy.

**What can Nautilus Chain bring to RWA? **

RWA is mainly to further chain traditional finance, inject more activity into traditional assets, and help the Web3 field to obtain more external increments. The large-scale users pouring into the chain have extremely high requirements for the underlying facilities. At present, the single-chain design is still the main idea of building a blockchain, especially the Layer 2 ecosystem built around the Ethereum system, which is highly dependent on the support of Ethereum Layer 1 in terms of data availability and settlement. We believe that in the long run, this system has limited support for RWA and lacks composability among different systems.

Nautilus Chain is currently the industry's first Layer 3 chain with a modular architecture. Its biggest difference is that it does not use Layer 1 such as Ethereum as the root layer, and uses Layer 0 facility Celestia as the main source of Nautilus Chain modularization. Through Nautilus Chain developers can directly build a highly customized application layer (not limited to Rollup), and Celestia provides DA.

In addition to DA, Nautilus Chain uses Eclipse as the settlement layer. Based on Eclipse, Nautilus Chain will no longer rely on Layer 1 such as Ethereum in the settlement of the system. Based on these components, Nautilus Chain developers can build various "independent" DAPP-Chains or DAPP-Rollups or DAPP-Subnets that can run in parallel from the bottom up, allowing developers to stack different chains into layers , thus creating a chain stack, and no longer need to end up on Layer1. In this process, Nautilus Chain acts as a parallel processing layer at the top, which helps to achieve scalability at the execution layer in the EVM environment.

Nautilus is implementing the modular stack of Celestia + Eclipse + zkEVM. With its modular architecture, it has also become the industry's first parallelized and fastest-running EVM Rollup Layer3 expansion solution, which can combine storage and computing , consensus, etc. are encapsulated in different modules, which have higher scalability and expansion capabilities, further improving network throughput and security, and increasing privacy through ZK Rollup technology to further expand richer functions.

Developers and asset issuers of RWA projects can further customize the development and build some layers or Rollups dedicated to serving individual RWA assets or projects based on Nautilus Chain. With the support of Celestia + Eclipse, they can run in parallel and provide The long-term development of the track provides support in terms of load carrying, maneuverability and flexibility. Based on Nautilus Chain, these different modular application chains are also highly interoperable to meet the value interaction between different RWA assets.

Modularization and customization are also providing support for developers in terms of compliance. On the one hand, based on Zk-Rollup, it can provide the application itself with censorable/non-censorable privacy transaction features to meet different commercial needs. At the same time, for some compliance The integration of regularization modules is also highly composable.

The first DEX PoseiSwap built on the Nautilus Chain was the first to integrate the OFAC compliance module, laying the foundation for its future development on the RWA track. Nautilus Chain itself is expected to be highly compatible with compliance, and the experience accumulated in PoseiSwap's early compliance is providing early support for RWA in long-term compliance.