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-1404

The ERC-1404 token standard is proposed by Ron Gierlach (@rongierlach), James Poole (@pooleja), Mason Borda (@masonicGIT), and so on. It is an EIP subtype. The EIP title is a simple restricted token standard. The current EIP status is draft.

ERC-1404 is a self-regulatory token, a simple restricted token standard. It extends the ERC20 interface and adds some restrictions on a token to help enforce regulatory compliance as follows:

contract ERC20 { 
  function totalSupply() public view returns (uint256); 
  function balanceOf(address who) public view returns (uint256); 
  function transfer(address to, uint256 value) public returns (bool); 
  function allowance(address owner, address spender) public view returns (uint256); 
  function transferFrom(address from, address to, uint256 value) public returns (bool); 
  function approve(address spender, uint256 value) public...