In recent days , the concept of Security Token Offerings sounds louder than Initial Coin Offerings . This is because of the advantages of security tokens over the utility tokens
Posted January 1,2019 in Science and Technology.
Security Token, is one which says YES to Howey's test. In short, the tokens which allow investors to claim for profit/share after the launch of ICO are known as security tokens. Hence, the process is termed as a new form of ICO, called Security Token Offerings (STO).
If you want to know about Howey's test and as well as about security token in details, just refer at Crypto Tokens and its Classifications
Security Token Blockchain :
As security tokens function different from utility tokens, they require a different or a new blockchain. Blockchain of security token will be in different infrastructure from utility token blockchain. The building blocks that make security token blockchain are listed in detail below
Building Blocks Of Seurity Tokens Blockchain
The blockchain building blocks can be imagined into two tires for easy understanding.
Tier 1 Infrastructure
Experts Delegate Nodes
Tier 2 Infrastructure
Crypto - security Primitives
TIER 1 - Blockchain Runtime :
The tier 1 blocks involve Components that abstracts main participants in security token offering process and Protocols that abstracts the interactions between those participants.
Tier - 2 Crypto securities Protocols :
Tier 2 block of a security token blockchain should involve protocols that are relevant to security token transactions.
To know in details about all the components and protocols refer the blog : How Security Tokens Can Be Created In Blockchain?