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)

ERC-20 and ERC-721 token

In Ethereum, most tokens are used as digital currency and can be interchangeable like ERC-20 tokens, but other tokens such as ERC-721 are for collectables, which are not interchangeable. These types of token are called non-fungible tokens.

In this section, we will overview these two types of token. We will look at the smart contract interface and discuss functions defined in the interface.

ERC-20

ERC-20 is the most popular Ethereum blockchain technical standard for tokens that are issued on Ethereum. It was proposed by Fabian Vogelsteller on November 19, 2015. ERC stands for Ethereum Request for Comment, and 20 is a unique ID number for the request to differentiate it from other standards. Currently...