Book Image

Security Tokens and Stablecoins Quick Start Guide

By : Weimin Sun, Xun (Brian) Wu, Angela Kwok
Book Image

Security Tokens and Stablecoins Quick Start Guide

By: Weimin Sun, Xun (Brian) Wu, Angela Kwok

Overview of this book

The failure of initial coin offerings (ICOs) is no accident, as most ICOs do not link to a real asset and are not regulated. Realizing the shortcomings of ICOs, the blockchain community and potential investors embraced security token offerings (STOs) and stablecoins enthusiastically. In this book, we start with an overview of the blockchain technology along with its basic concepts. We introduce the concept behind STO, and cover the basic requirements for launching a STO and the relevant regulations governing its issuance. We discuss U.S. securities laws development in launching security digital tokens using blockchain technology and show some real use cases. We also explore the process of STO launches and legal considerations. We introduce popular security tokens in the current blockchain space and talk about how to develop a security token DApp, including smart contract development for ERC1404 tokens. Later, you'll learn to build frontend side functionalities to interact with smart contracts. Finally, we discuss stablecoin technical design functionalities for issuing and operating STO tokens by interacting with Ethereum smart contracts. By the end of this book, you will have learned more about STOs and gained a detailed knowledge of building relevant applications—all with the help of practical examples.
Table of Contents (9 chapters)

Introduction to Blockchain

In this chapter, we give an overview of blockchain technology, along with its key concepts, such as the distributed ledger, transactions, blocks, proof of work, mining, consensus, and so on. We will cover bitcoin, the mother of blockchain technology, and Ethereum, which was developed out of bitcoin, in detail. We will then proceed to the discussion of initial coin offerings (ICOs) and security token offerings (STOs) in Chapter 2, STO – Security Token Offering. Chapter 3, Monetizing Digital Tokens Under US Security Laws, is dedicated to STO-related laws and regulations. We will cover the basics on stablecoins in Chapter 4, Stablecoin. Chapter 5, Security Token Smart Contracts, and Chapter 6, Building a Security Token Dapp, demonstrate how to build frontend and backend applications to issue security tokens, along with examples. The last two chapters talk about how to build a stablecoins frontend and backend applications.

In this chapter, we cover the following specific topics:

  • A brief overview of the blockchain technology
  • Bitcoin basics
  • Ethereum basics
  • Miscellaneous comments