Security Tokens Blockchain Structure

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

Components

Assets
Owners
Validator Nodes
Experts Delegate Nodes

Protocols

Tokenization
Identity
Ownership-Consensus
Privacy
Oracles

Tier 2 Infrastructure

Protocols

Crypto - security Primitives
Compliance
Disclosures

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?

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