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)

Creating a security token Truffle project

In this chapter, we will build ERC-1404—a Simple Restricted Token Standard (SRTS). We will utilize extendable standard code provided by https://erc1404.org/ to start our security token development based on the ERC-1404 standard. Here are the steps to start our security token development:

  1. Run the following command to download the project template:
git clone https://github.com/PacktPublishing/Security-Tokens-and-Stablecoins-Quick-Start-Guide.git
  1. Navigate to the simple-restricted-token project folder; you should see the following prebuild project structure:
  1. Install node libraries on the project root folder:
npm install

This will install project node dependencies.

  1. Update the truffle.js file configuration.

Since our Ganache runs on port 8545, we need to update the truffle.js file configuration to connect to the Ganache server...