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)

Security token technical design overview

Security tokens, like ERC-20 tokens with built-in regulatory restrictions, protect investors' rights at the token level. It redefines the whole process through which companies or startups raise money.

As of today, many different standards are being proposed and implemented in the marketplace. In this section, we'll look into the following Ethereum security token standards:

  • ERC-1400/ERC-1410
  • ST-20
  • R-Token
  • SRC-20
  • DS-Token
  • ERC-1404
  • ERC-884

ERC-1400/ERC-1410

The ERC-1410 PFT standard is part of the ERC-1400 security token standards. ERC-1410 was created in September, 2018, and proposed by Adam Dossa (@adamdossa), Pablo Ruiz (@pabloruiz55), Fabian Vogelsteller (@frozeman), and...