Technology and Security

Built on mainstream public blockchain infrastructure, ArtStar tokenizes physical artworks under the ERC-20 standard and establishes an on-chain compliance management contract framework. This architecture preserves transaction transparency while delivering institutional-grade asset security and compliance control.

Tokenization Architecture

ERC-20 Tokenization Standard

ArtStar uses the ERC-20 standard as the base protocol for asset tokenization.

Parameter	Configuration Value	Description
Decimals	18	High precision to support flexible fractional ownership
Symbol	ARTS / asset-specific symbol	Easy for market recognition and exchange listings
Total Supply	Anchored to physical asset value	Fixed in aggregate through the compliance management contract

Tokenization Workflow

Physical asset valuation -> Legal structuring -> Smart contract deployment -> KYC/AML verification -> Token issuance

Asset Preparation: Conduct professional valuation of the physical artwork and design the legal structure, such as an SPV or direct tokenization.
Custody Arrangement: Appoint a qualified custodian to safeguard the physical asset and ensure the asset is securely ring-fenced.
Contract Deployment: Deploy token contracts that comply with ArtStar standards on BNB Chain (BSC).
Identity Verification: Investors complete KYC/AML procedures and their wallet addresses are added to the whitelist.
Token Distribution: After compliance checks pass, tokens are securely distributed to investor wallets.

Compliance Contract Framework

ComplianceManage Contract Architecture

ArtStar has built a complete on-chain compliance contract framework that delivers institutional-grade compliance control through signature-based authorization.

On-Chain Signature Verification

The compliance management contract uses ECDSA signature verification to ensure that only properly authorized actions can be executed:

// Core signature verification logic
function _verifySignature(
        address user,
        bytes memory signature,
        uint8 operation,
        uint256 expireTime
    ) internal virtual returns (bool) {
        if (block.timestamp > expireTime) revert SignatureExpired();

        bytes32 messageHash = keccak256(
            abi.encodePacked(block.chainid, address(this), user, txNonce[user], operation, expireTime)
        );

        bytes32 ethSignedHash = MessageHashUtils.toEthSignedMessageHash(messageHash);

        address recovered = ECDSA.recover(ethSignedHash, signature);

        if (recovered != owner() && subAdmins[recovered].permissionLevel != PERMISSION_SIGNATURE_MANAGER) return false;

        txNonce[user]++;

        return true;
    }

Whitelist Management

Function	Description	Permission Requirement
Address Onboarding	Add investor addresses that passed KYC to the whitelist	Compliance administrator
Batch Updates	Support batch addition or removal of blacklisted addresses	Compliance admin + multisig
Status Query	Query an address’s compliance status in real time	Public interface
Automated Checks	Automatically validate both counterparties during transfers	Inline contract logic

Compliance Parameters

Parameter	Configuration Item	Description
Investment Limits	Min/Max Investment	USD limits for a single investment
Raise Limits	Min/Max Raise	Target fundraising range for an issuance round
Lock-Up Period	Lock Duration	Vesting or holding period after token delivery
Transfer Restrictions	Transfer Restrictions	Transfers involving blacklisted addresses are prohibited

Blockchain Infrastructure

BNB Chain Multi-Layer Architecture

ArtStar selects BNB Chain as its primary deployment network and benefits from its mature infrastructure:

Chain	Role	Key Characteristics
BSC (BNB Smart Chain)	Main network	Scalable, low cost, secure, and production-ready
opBNB	Scaling layer	Higher TPS and lower gas, suitable for high-frequency activity

Chain Selection Considerations

Consideration	BSC Advantage	L2 Option
Gas Fees	Very low (about $0.05/tx)	Can be reduced by another 10x-100x
Transaction Speed	~3-second block time	Near-instant confirmation
Ecosystem	Mature and tooling-rich	Rapidly evolving
Use Cases	Standard trading and staking	High-frequency trading and small-ticket assets

Security Architecture

Layered Security Controls

┌────────────────────────────────────────────────────────────┐
│                     Security Architecture                  │
├────────────────────────────────────────────────────────────┤
│  Layer 1: Smart Contract Security                         │
│    - Professional security audits by independent firms    │
│    - Formal verification                                  │
│    - Bug bounty program                                   │
│                                                            │
│  Layer 2: Access Control                                  │
│    - Multi-signature wallets for sensitive operations     │
│    - Timelock protection for critical actions             │
│    - Role-based access control                            │
│                                                            │
│  Layer 3: Compliance Verification                         │
│    - KYC/AML identity verification                        │
│    - On-chain signature verification                      │
│    - Whitelist controls                                   │
│                                                            │
│  Layer 4: Asset Custody                                   │
│    - Physical assets: qualified custodians / trustees     │
│    - Digital assets: MPC + HSM cold storage               │
└────────────────────────────────────────────────────────────┘

Smart Contract Audits

ArtStar smart contracts must go through the following security assurance process:

Internal Code Review: Multiple rounds of review performed by the development team.
Third-Party Security Audit: Independent blockchain security firms, such as Trail of Bits, CertiK, or OpenZeppelin, review the contracts.
Formal Verification: Critical logic is mathematically validated where appropriate.
Testnet Validation: Contracts are thoroughly exercised on test networks before mainnet deployment.
Bug Bounty Program: A continuous bug bounty program remains available after launch.

Multisignature Governance

Operation Type	Signature Requirement	Description
Parameter Changes	2/3 multisig	Update limits, lock-up duration, and similar parameters
Whitelist Management	Single admin signature + logging	Day-to-day operational action
Asset Migration	3/5 multisig	High-risk action requiring multiple approvals
Contract Upgrade	Timelock + multisig	Includes a 48-hour delay window

Asset Custody Framework

Physical Asset Custody

Custody Element	Description
Custodian Qualification	Licensed professional custody institution
Physical Security	Professional vaults, fire and water protection, and surveillance
Insurance Coverage	Adequate property insurance coverage
Periodic Audit	Independent verification of the physical asset’s existence

Digital Asset Custody

Custody Method	Technical Implementation	Applicable Scenario
MPC Wallet	Private key sharding through multi-party computation	Institutional asset management
Hardware Security Module (HSM)	Dedicated hardware security chip	High-security storage
Multisig Wallet	Joint control by multiple parties	Large-value asset operations

Compliance and Regulatory Framework

International Compliance Standards

ArtStar aligns with the following international compliance standards:

Compliance Area	Standard / Regulation	Implementation Approach
KYC	FATF Recommendations	Identity verification + address whitelisting
AML	Financial Action Task Force	Transaction monitoring + suspicious activity reporting
Securities Compliance	Hong Kong SFO / relevant jurisdictions	ERC-3643-compatible design
Data Protection	GDPR / PDPO	Minimal on-chain data + encrypted storage

Independent Regulatory Review

The ArtStar community will appoint internationally recognized independent professionals to conduct periodic independent regulatory reviews of physical assets. The review results will be disclosed to the public in a timely manner.

Review Frequency: Quarterly or annual independent audits
Review Scope: Physical asset existence, integrity, and custody compliance
Disclosure: Transparent and public review reports

Evolution of Compliance Token Standards

The ArtStar tokenization architecture is compatible with the following token standard evolution path:

Standard	Type	Applicable Scenario	Compliance Capability
ERC-20	Fungible token	Current model for fractionalized art	Basic compliance through whitelist controls
ERC-3643	Permissioned token	Scenarios with higher compliance requirements	Native KYC/AML and investor eligibility controls
ERC-1400	Security token	Institutional-grade security tokenization	Partitioned transfers and attached legal documentation

Evolution Strategy: ArtStar adopts a modular design that can progressively upgrade token standards in response to regulatory requirements, enabling a smooth transition from ERC-20 to ERC-3643 or ERC-1400.

Technology Stack Overview

Technical Component	Technology Choice	Description
Smart Contracts	Solidity + Hardhat	Mainstream general-purpose contract stack
Frontend	Vite + React + TypeScript	Modern Web3 application development
Web3 Library	wagmi + viem	Consistent with ethers.js v6 best practices
Testing Framework	Hardhat + Vitest	Full-stack testing for contracts and components
Chain ID	BSC Mainnet: 56 / Testnet: 97	Configured for the BSC network
Identity	Supabase Auth / Privy	Web3 identity with a familiar Web2-like user experience

Technical

Contract Functions

Contract Methods

Technology and Security

Tokenization Architecture

ERC-20 Tokenization Standard

Tokenization Workflow

Compliance Contract Framework

ComplianceManage Contract Architecture

On-Chain Signature Verification

Whitelist Management

Compliance Parameters

Blockchain Infrastructure

BNB Chain Multi-Layer Architecture

Chain Selection Considerations

Security Architecture

Layered Security Controls

Smart Contract Audits

Multisignature Governance

Asset Custody Framework

Physical Asset Custody

Digital Asset Custody

Compliance and Regulatory Framework

International Compliance Standards

Independent Regulatory Review

Evolution of Compliance Token Standards

Technology Stack Overview

References

​Tokenization Architecture

​ERC-20 Tokenization Standard

​Tokenization Workflow

​Compliance Contract Framework

​ComplianceManage Contract Architecture

​On-Chain Signature Verification

​Whitelist Management

​Compliance Parameters

​Blockchain Infrastructure

​BNB Chain Multi-Layer Architecture

​Chain Selection Considerations

​Security Architecture

​Layered Security Controls

​Smart Contract Audits

​Multisignature Governance

​Asset Custody Framework

​Physical Asset Custody

​Digital Asset Custody

​Compliance and Regulatory Framework

​International Compliance Standards

​Independent Regulatory Review

​Evolution of Compliance Token Standards

​Technology Stack Overview

​References

Tokenization Architecture

ERC-20 Tokenization Standard

Tokenization Workflow

Compliance Contract Framework

ComplianceManage Contract Architecture

On-Chain Signature Verification

Whitelist Management

Compliance Parameters

Blockchain Infrastructure

BNB Chain Multi-Layer Architecture

Chain Selection Considerations

Security Architecture

Layered Security Controls

Smart Contract Audits

Multisignature Governance

Asset Custody Framework

Physical Asset Custody

Digital Asset Custody

Compliance and Regulatory Framework

International Compliance Standards

Independent Regulatory Review

Evolution of Compliance Token Standards

Technology Stack Overview

References