Security tokens become a crucial factor in the cryptosphere! Security token development has become the next great phase in the crypto industry. So everyone wants to launch their own ERC-1400 Token. In this article we have to see separately What is ERC-1400 token, Benefits of ERC-1400 token, Features of ERC-1400 token, Features of ERC-1400 token, What is STO and ICO, Difference between STO and ICO.
What is ERC - 1400 Tokens?
ERC-1400 token is a Crypto token built on Ethereum blockchain and it was created by Polymath along with numerous external contributors. Security tokens can be a digital form of all financial securities and they might have their own Ethereum-based token standard called ERC-1400, it works with several other token standards to manage both Fungible and Non-fungible token. ERC- 1400 makes the security token transactions more transparent and the status of any transactions can be checked in real-time.ERC-1400 is the combination of both ERC-20 and ERC-777 standards and it will ensure that security tokens are often backed by real-world assets.
History of ERC-1400 tokens:
ERC-1400 token is developed by Adam Dossa, Fabian vogelsteller, Stephane Gosselin and Pablo Ruiz. ERC -1400 security token development is the latest protocol development and it was initiated by a few months ago.
Benefits of using ERC- 1400 tokens
Some of the features of ERC- 1400 tokens:
Get document/Set document:
It is used to manage a library of documents associated with the token.
It is used to determine the on-chain function if a transfer will succeed, and also gives the return details that indicate the reason if the transfer is not valid.
By using ERC-1400 token, it is possible to modify metadata and transaction parameter on both on-chain and off-chain
Whitelist all potential buyers/sellers and limit the number of tokens per wallet and many more.
It is a Standard interface to query, validate and justify the success and failure of transactions.
Before using the ERC-1400 standard token they have some major requirements
ERC-1400 must have a standard interface to query the successful execution of a transfer and in the event of a failed transfer, return reason for failure and must be able to perform a forced transfer for legal action or fund recovery, Must emit standard events for issuance and redemption.
Some of the ERC standard tokens come under the ERC-1400 standards are
ERC-1594: core Security Token Standard
This ERC-1594 will be needed for all security tokens created under the ERC-1400 umbrella standard the main purpose of using this tokens is to transfers, issuance, redemption and also the ability to check the validity of a transfer and it is designed to support these off-chain inputs and authorizations by facilitating for the injection for the off-chain injection of data.
ERC-1410 It is partially fungible tokens that allow for attaching of metadata to the partial balance of a token holder. This standard describes an interface in which an owner’s token can be organized into a set of partitions with each partition being represented by a corresponding key and balance.
ERC-1643: Document Management Standard to support the attaching of documentation to security token contracts.
What is Security Token Offering (STO)?
STO is also a token offering that is similar to an ICO but the main difference is that STOs are regulated. It issued investors with a token representing their investment like assets, stocks, bonds, funds and real estate investment trust. Security token represents the ownership information of the product and it would be recorded on a blockchain.
What is the Initial Coin (ICO)?
ICO - Cryptocurrency start-ups firms want to raise money through an Initial coin offering(ICO), it is usually created on a whitepaper. In the whitepaper, it contains all the details about the project and how much money is needed to undertake a venture, ICOs are decentralized and largely unregulated because they putting Investors at risk, So many of the investors have lost their money from fraudulent ICOs by fraudsters, these are the main reason why ICOs are unregulated.
Difference between Initial coin offering(ICO) and Security token offering(STO)
Both Initial Coin Offering(ICO) and Security Token Offerings(STO) almost follow a similar process where an investor gets a crypto coin or token which represents their investment. ICO and STO are fundraising methods of blockchain and similar projects. STOs are asset-backed with regulatory governance. ICOs are non-regulated by financial authorities such as SEC (Securities and Exchange Commission). STOs promise to offer more security to the investor.
Business peoples, start-ups and enterprises are ready to launch their own security token with unique ERC-1400 standards for their safe and secure transaction.
If you have an idea to create your own ERC-1400 Standard token?
First, you have to find the best Ethereum standard token development company and analyze their services and how much they are familiar with creating ERC-1400 standard token Platforms.
Developcoins is the leading Ethereum token Development company, provides the best ERC-1400 token development services for business and start-ups, the team of dedicated blockchain developers are helping the clients to launch their own ERC-1400 token as per their client's needs and also specialized in creating ERC-20, ERC-720 and much more tokens with the set of protocols.
Do you want to create your own ERC-1400 tokens with Developcoins? Share Your Requirements Here