Emerging Trend in the Cryptocurrency Sector: Real-World Asset Tokenization (RWA). Recent data shows that RWA is the only crypto narrative that has seen an increase in the past three months apart from memes. This trend has been further fueled by BlackRock's launch of the BUIDL on-chain fund, attracting widespread market attention.Increasing Demand for RWA in the Market, Yet Facing Liquidity Fragmentation Issues. Tokenizing real-world assets can enhance trading and settlement efficiency, but technical challenges and market fragmentation lead to liquidity fragmentation, limiting its growth. Over 60% of RWA institutions trade through their own token markets, resulting in only a small portion of fixed customers being attracted after assets are tokenized.The Jiritsu Project Introduces Innovative Technology to Address RWA Challenges. Jiritsu utilizes ZK proofs and MPC multi-party computation to automate the registration and verification of off-chain assets, improving economic efficiency and transparency while reducing on-chain costs. Jiritsu's technology allows for secure, private verification of asset details and embeds regulatory compliance and asset integrity into tokenized products.Cross-Chain Interoperability Provides New Opportunities for the RWA Market. Jiritsu not only addresses the limitations of a single public chain but also, through its oracle system, aggregates and verifies information without the need for cross-chain bridges. This system enhances interoperability between different public chains, bringing new development opportunities to the RWA market.Team and Funding Support Accelerate Project Development. Founded by renowned scholars and successful entrepreneurs, Jiritsu has completed two funding rounds totaling 10.20 million US dollars. The addition of a former BlackRock asset management manager will further drive the project's development, especially in the development and adoption of the UVC platform and Tomei RWA.Summary: Through its innovative technological solutions, the Jiritsu project not only enhances liquidity and market efficiency for RWA but also brings new growth momentum to the asset tokenization market. With technology maturation and market acceptance, Jiritsu is expected to have a greater impact in the RWA sector.

From the data on Dune Analytics, RWA has become the only crypto narrative that has risen in the past 3 months, apart from memes, amid a stagnant market environment. This performance has caught our attention. In fact, the discussion about RWA has been ongoing since June last year, and it was fully ignited after BlackRock launched the BUIDL on-chain fund.In the current market environment where fragmentation is evident, cross-chain interoperability is arguably a solution to bridge the gap.<h1>Jiritsu ZK-MPC: Trustless, Automated Off-Chain Asset Verification</h1>It is not difficult to see the bottleneck that Real World Assets (RWA) face in breaking through the scalability limitations, which is the lack of automated processes or technologies similar to Automated Market Makers (AMM) in the DeFi space. For RWA products, tokenization is often just the beginning; ensuring continuous asset updates and transparency after the product is deployed on-chain is the key to testing efficiency and cost. This typically includes the following aspects:1. Financial Reports: Asset managers need to regularly publish financial and performance reports of assets, such as real estate managers needing to provide payment dates and amounts of rental income regularly, or details of debts, and vacancy situations, to provide investors with a clearer understanding of the cash flow dynamics of the real estate.2. Debt Management: Products like RWA credit require regular updates on loan collateral, repayments, interest rate adjustments, and refinancing activities, allowing investors to understand their health, which is the basis for maintaining investor trust in such products.3. Ownership Changes: If there are changes in the basic ownership of the underlying assets or legal entities owning the assets, timely announcements need to be made.4. Market Supervision: When there are changes in the market supervision environment where the underlying assets are located, managers also need to report and make adjustments to ensure product compliance.Aside from these, there are also various intricate details such as asset insurance and risk management strategies, asset valuation and inspection, legal entities issuing the assets, etc. From tokenization to information updates and maintenance, asset managers need to invest a significant amount of effort and attention to various details throughout the investment lifecycle. In summary, in the current market environment with "infrastructure redundancy," asset tokenization is no longer the most challenging aspect of RWA development; continuous off-chain verification and legal supervision are the main factors slowing down the growth of asset categories and scale, eroding the value of on-chain assets. All of this can only be discussed under the premise of setting aside the centralized audit risks in off-chain entities.The scale and growth rate of RWA assets depend entirely on the strength of off-chain issuance and management institutions, which is also the key reason why US Treasury RWA products have rapidly grown after BlackRock's entry, compared to other assets such as real estate, commodities, etc., which have difficulty achieving economies of scale due to the lack of automation in processes. Of course, the depreciation of on-chain assets also implies significant business opportunities, and currently, most of these potential profits have flowed into the hands of asset issuers and managers like Securitize.Is it possible to build its own automated "asset oracle" system in the RWA field, similar to what ChainLink is to DeFi? We found some answers in the Jiritsu project.Jiritsu is a specialized Avalanche subnetwork for off-chain asset verification, aiming to achieve automated and trustless registration and verification of off-chain assets, reducing on-chain erosion and costs while enhancing the economic efficiency and transparency of RWA tokenization. By integrating ZK proofs and MPC multi-party computation, Jiritsu can ensure secure and private automated verification of detailed asset information, embedding regulatory compliance and asset integrity into tokenized products. Interestingly, the name "Jiritsu" comes from the Japanese word "じりつ," meaning independence. In the RWA field, which heavily relies on centralized human resources in core processes, this is exactly what is needed to enhance its native cryptographic properties and achieve economies of scale.<img src='https://sosovalue.s3.us-west-2.amazonaws.com/sosovalue/2024/07/08/5e9a5add-2d7f-4616-850c-5f43b619a0a9.webp'/>The Jiritsu ZK-MPC oracle aggregates data from multiple sources, verifies relevant calculations, and uses a versatile data retrieval mechanism to enhance the integration depth of different types of assets. This oracle includes two main mechanisms, "Push" and "Pull," where the former involves data providers (such as asset managers) directly sending information to the oracle, and the latter allows the oracle to retrieve data directly from integrated information suppliers such as supply chain software, banking information systems, etc., through APIs.In terms of consensus mechanisms, Jiritsu introduces the concept of Proof of Workflow (PoWF), where nodes in the network run an operating system driven by a computational engine and workflow manager, using generated ZK proofs to ensure verifiable computation and smart contract execution for consensus, directly integrating the consensus mechanism into its MPC framework. Compared to existing oracles like ChainLink or Pyth, Jiritsu does not require cross-chain bridges for information transmission during data aggregation and adds analysis and verification functions to information beyond simple data feedback.<img src='https://sosovalue.s3.us-west-2.amazonaws.com/sosovalue/2024/07/08/fa6ebf65-0c02-44a9-a85d-ba91ebaa9d37.webp'/>After users or asset managers register assets they wish to tokenize and their detailed information on Jiritsu, the ZK-MPC validator analyzes this information and confirms the value and compliance status of the assets. The analysis process involves two types of validators, one for reviewing business policies and regulatory compliance, and the other for handling financial data, executing tasks such as spot price retrieval and market valuation assessments.After the information is analyzed and verified, ZK-MPC will generate ZK proofs and store them on the chain. Users can then claim these proofs and embed them into their smart contracts, completing the entire process of asset tokenization.Jiritsu officially demonstrated the complete process of its product using Paxos' tokenized gold product PAXG as an example:First, Paxos purchases gold from a reliable gold exchange and deposits it into a custody service. Subsequently, Jiritsu users can create validators on Jiritsu's ZK-MPC nodes using the Jiritsu dApp on supported public chains. Once the ZK-MPC nodes retrieve information about Paxos' gold custody, validators generate relevant ZK proofs.During the verification process, ZK-MPC nodes are responsible for off-chain verification calculations, and the generated ZK proofs have different levels of access and confidentiality permissions. For example, auditors can have full access to all information, while asset managers can only see specific information relevant to their roles. This verification process can update information at preset times or on demand, making it more efficient and reliable than Paxos' current manual quarterly inventory verification method.After the ZK proofs are uploaded to the Jiritsu network, Paxos can proceed with the tokenization of its custody gold. At this stage, Jiritsu also implements the concept of 'chain abstraction,' allowing asset issuers like Paxos to mint corresponding tokens on ideal target chains such as Solana, Avalanche, or BNB Chain.Once the tokens are generated, Paxos pays fees to nodes and validators through the Jiritsu dApp, with a portion allocated to the Jiritsu network. The PAXG tokens purchased by investors will include proof of underlying gold and can use this proof to access gold custody status information on the Jiritsu network, allowing Paxos to pass on the cost to investors at this stage.<img src='https://sosovalue.s3.us-west-2.amazonaws.com/sosovalue/2024/07/08/48653ed4-8b45-41e2-99be-959e1423d0c6.webp'/>dApps on the Jiritsu network are specifically designed to facilitate the writing of specific data, allowing users to create validators for any business logic, data reader, and smart contract integration. This adaptability ensures that Jiritsu can provide customized solutions for a wide range of business needs. In addition, Jiritsu Proof under its ZK-MPC cloud service significantly expands the asset categories for information verification. In addition to traditional financial verification such as bank information and corporate credit, it can also verify the status information of a range of real-world assets, such as company factory equipment, inventory, and transaction and income information. Recently, Jiritsu provided inventory proof for an Amazon supply chain company with over 100,000 SKUs and a total value of approximately $20 million.Building on this, Jiritsu also measures its impact on real-world assets being put on the chain through two data metrics: 'Total Asset Verified' and 'Total Asset Secured.' Using these data metrics, Jiritsu provides more compatible and interoperable underlying assets Lego for DeFi protocols. According to the official <a href='https://dune.com/jiriledger/jiriledger-metrics' target='_blank'>Dune dashboard data</a>, Jiritsu has verified over $18 billion in assets to date and has over $60 million in assets waiting for various protocols to use.<img src='https://sosovalue.s3.us-west-2.amazonaws.com/sosovalue/2024/07/08/788d38ed-cc4e-485f-8a6c-d67dd2014fab.webp'/>Recently, Jiritsu integrated with BlackRock's RWA ecosystem to provide automated on-chain proofs for the valuation, verification, compliance, and KYC platform information of its Bitcoin spot ETF and BUIDL fund reserve assets, making it easier for other protocols to use these already on-chain assets. On the other hand, although iBIT and BUIDL bring significant incremental funds to the crypto market and RWA, their asset verification relies on self-reporting and only provides annual audits, while Jiritsu offers a more transparent and cost-effective solution for these products.Jiritsu also integrated with the Republic platform, which focuses on the RWA field, allowing any asset manager to directly implement and use similar solutions, improving compliance and operational efficiency while providing a variety of tokenized product offerings. Asset managers can use Republic's mature infrastructure for tokenization, compliance, marketing, and customer service. By automating and trustlessly verifying and auditing, Jiritsu moves the work traditionally done by institutions like Moody's and KPMG onto the chain, a part of the traditional market's revenue exceeding $150 billion. Even at 10%, this is an imaginatively high business ceiling.<h1>Team Background</h1>Jiritsu Network's co-founders, Jacob Guedalia and David Guedalia, are both highly respected in the academic field. Jacob holds a Bachelor's degree in Physics and Philosophy from New York University and a Master's degree in Applied Physics from the Weizmann Institute of Science in Israel. David holds a Master's degree in Computational Geography from Bar-Ilan University and a Ph.D. in Neural Computation from the Hebrew University of Jerusalem. Additionally, Jacob is a successful serial entrepreneur, having founded and exited four companies, with a total of over 100 U.S. patents between him and David.In the past two funding rounds, Jiritsu has raised a total of $10.20 million, led by gumi Cryptos Capital, with participation from Susquehanna Private Equity Investments, LLLP, Republic Capital, and other investors. Former BlackRock Asset Management manager Michael Lustig has also announced joining the Jiritsu team. The company plans to use the new funds to "accelerate the development and adoption of the UVC platform and Tomei RWA." Jiritsu was founded in 2020 and has developed technologies such as Universal Verifiable Computing (UVC) to provide a programmable approach applicable to any workflow, generating workflow proofs.
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Understanding Jiritsu in One Article: Former BlackRock Asset Manager Joins, Cryptonative RWA Solution