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)

Basics of stablecoin

In the previous section, we introduced the basics of money, which can be either commodity money or fiat money. Now we are ready to talk about stablecoin in this section. Before getting to this main topic of this chapter, we must first talk about cryptocurrency.

Cryptocurrency

A cryptocurrency is a currency in a digital form with encryption. In other words, it is a digital asset used as a medium of exchange. Bitcoin is considered to be the first cryptocurrency, whose platform initially went live in early 2009. It is based on the proposal in the white paper circulated by Satoshi Nakamoto in October 2008. Since then, cryptocurrencies receive immense attention. New cryptocurrencies were created and issued...