TokenSoft Unveils ERC-1404 Security Token Standard

The security token issuance platform, TokenSoft, raised eyebrows this week with its announcement of the ERC-1404 security token protocol. Security tokens adhere to strict guidelines pertaining to their ownership and transfer. Recognizing the need to integrate these features directly into their protocol, TokenSoft developers created the ERC-1404 standard. TokenSoft spent the last year developing its new security token standard. Developers took cues from the firm’s long list of clientele and business partners. Developers worked hand-in-hand with security law firm experts, major exchanges, and startups looking to utilize security token offerings (STOs) in their fundraising campaigns.

In a public statement, TokenSoft’s Special Projects Division head, Lawson Baker, explained how the future of the security token market depends heavily on creating an easy-to-use system that any company can utilize. He stated that interoperability is another primary concern that developers consider paramount in adoption. Security tokens provide users with a more robust experience when platforms are interoperable.

ERC-1404

ERC-1404 is an open-sourced Ethereum (ETH -0.66 %) based protocol that integrates securities laws directly into the tokens construction. The ERC-1404 protocol enables a number of unique features. These features include integrated token lock-up periods, Know Your Customer (KYC) integration, Anti-Money Laundering (AML) systems, Private real-estate trusts, and Delaware General Corporations Law Shares compliance.

Tokensoft-Daten über die Homepage

Eine weitere einzigartige Funktion ist die Möglichkeit, für Menschen lesbare Nachrichten zu senden, wenn Token-Übertragungen rückgängig gemacht werden. Zurückgesetzte Token-Transaktionen sind Transaktionen, die aus irgendeinem Grund nicht durchgeführt wurden. Die Transparenz des Projekts ermöglicht es dem Token-Benutzer zu verstehen, warum ein Token zurückgesetzt wurde. Diese Funktion wird mit Sicherheit einige der Rätsel lösen, warum diese Fehler auf der Plattform auftreten.

In addition to releasing the project’s code to the public, TokenSoft created a helpful website that showcases the advantages of their new token standard. TokenSoft hopes to see its new standard become commonplace in the ever-growing security token sector.

Die Standards für Sicherheitstoken nehmen zu

TokenSoft isn’t the only development team looking to corner the security token market. Already, Ethereum developers have launched the ERC-725 identity protocol, which complies with KYC regulations. Identity-based tokens could be the next big thing in the cryptospace as regulators look to shed light on the industry.

Polymath (POLY -47.37 %) is another token issuance platform that decided to produce a new security token standard. Polymath’s platform utilizes the ST-20 protocol to accomplish much of the same tasks as its Ethereum-based counterparts. While Polymath originally operated on Ethereum, the platform has since launched its own blockchain, Polymesh, specifically for the job of integrating security token procedures. This decision helped Polymath gain traction over the last few years.

TokenSoft positioniert sich für die Zukunft

TokenSoft’s latest move positions the firm perfectly for future security token usage in the space. Security tokens fill a much-needed desire to move the cryptomarket towards a more regulated atmosphere. Platforms such as TokenSoft push crypto adoption to an increased level by providing traditional investment firms the ability to participate in the cryptospace.