ERC-5485: Interface for Legitimacy, Jurisdiction and Sovereignty

[xinbenlv]

Thank you @radek for the feedback.

1 Interoperability

@radek

Honestly I cannot imagine interoperability among smart contracts if they needed to take into consideration outputs of such interface.

There are many cases I can think of. Here is one

1. In US, only a qualified investor QI can invest in a company C when QI has proper accreditation such as QI being a FINRA memeber. They can leverage ERC-5485 to attest the following

a. C is a Delaware company, meaning they observe State of Delaware as jurisdiction() will return an address representing The Court of State of Delaware, and they are organized in Delaware meaning they will be accredited by the State Department of Delaware. sourceOfAccreditation() will return an address of State Department of Delaware. And as you go to State Department of Delaware you will be able to call hasAccredited()

TODO add interfaces for hasAccredited(bytes32 typeOfAccreditation, address entity) etc.

b. QI is a accredited investor accredited by FINRA, they will be able to call sourceOfAccreditation() and get an address of FINRA and then call that address with hasAccredited() to validate the membership of QI in FINRA.

In this case

When the contract of QI’s treasury wants to a investment - in the format of a swap of ERC-20 representing C’s equity vs the stablecoins they invest, such C will check if QI is a member of FINRA - by checking hasAccreditation before proceed. And if QI’s own governance require QI to only invest in companies that observes Delaware jurisdition, they can put such check logic that in this swap too.

2 Concurrent Jurisdiction

@radek

Wrt design itself - there are more jurisdictions than one - E.g. in EU - in many cases you have both EU level and a national (country) level. I guess there will be similar cases in US (Federal vs Delaware) and other larger regions.

Indeed multi/concurrent-jurisdiction is a design question we have to face. For simplicity now we are observing only a single jurisdiction like all contracts. In Delaware, the Delaware is a directly observed jurisdiction, and US Federal is a inferred jurisdiction because Delaware observes US Federal as a jurisdiction. Same for countries in EU etc. I can’t think of any countries or states that doesn’t have this kind of tree/single parent relationship when there is an indirect jurisdiction.

That said, I can also think of other kinds of jurisdiction relationships for example a pre-declared forum of arbitration. If more people hope we support concurrent jurisdiction, we will update accordingly.