ERC1400 Security Token Offering Standard: What you need to know


Since the inception of the cryptocurrency-bitcoin, the popularity of blockchain skyrocketed to its extent. The blockchain is a digital ledger that stores all digital information in a highly secure manner. Blockchain is an open and decentralized platform where crypto coins and tokens can be created and the information stored is highly immutable. Those crypto tokens can be used for multiple purposes like crowdfunding, making payments, etc. 

While speaking about crypto crowdfunding, there are various types of crypto crowdfunding prevailing in the crypto ecosystem like ICO, STO, IEO, etc. STO stands for security token offering and it is one of the most popular methods of raising funds. For running an STO campaign, creating security tokens is highly mandatory. Security token creation includes multiple factors like token standards, regulatory measures, etc. 

Security tokens are created by backing some of the real-world assets like bonds, collectibles, real estate, etc. With backing an asset, SEC guidelines should be also followed for security token creation. For creating a security token, an ideal blockchain should be chosen. Ethereum is the most opted blockchain for security token creation. Moreover, ERC1400 is the token standard for security token creation.

This blog will give you a complete idea if you wish to create security tokens using ERC1400. Now, let us start with…

What is the ERC1400 Standard?

ERC1400 is a popular token standard of Ethereum. It was introduced by Adam dossa, Stephane Gosselin, Fabian vogelsteller, and Pablo Ruiz. It was the first token standard created for security token development. ERC1400 is a combination of two token standards viz. ERC20 and ERC777 token standards. The crypto tokens that are developed with the ERC1400 token standard are known as ERC1400 tokens otherwise known as security tokens. Using ERC1400, security tokens can be developed in a hassle-free manner. As discussed earlier, before creating a security token with ERC1400, all the SEC guidelines should be perfectly followed. 

Creating a security token on your own includes certain risk factors. So, it is suggested to approach a reputed Ethereum token development company in the crypto ecosystem to create a security token in an ideal manner. 

However, there are numerous features and functions offered in ERC1400. Now, we shall discuss those in detail…

Features and Functions of ERC1400

ERC1400 is a security token standard that comes with high-end features integrated within it. The following are the features of ERC1400.

  • Composed of a standard interface to query, validate, and justify the success and failure of transactions!
  • A mandatory feature to attach metadata to a token holder’s balance.
  • Possibility of modifying data and transaction parameters on and off-chain.
  • Limitless range of asset classes across representable jurisdictions.

Now, we shall discuss the functions included in ERC1400.

  • Get Document/Set Document: This allows users to manage the library of documents associated with the tokens.
  • CanSend: Possesses an on-chain function to determine if the transfer will succeed, and return details that indicate a reason if the transfer fails/becomes invalid.
  • Issuable: This token can specify if the token issuance has been completed.
  • IssuebyTranche: This function is made to increase the total supply.

Now, we shall discuss…

How to Develop a Security Token Using ERC1400?

There are certain steps involved in developing a security token. Those steps are as follows,

  • For deploying a fully functional security token, first getting approval from the SEC is highly necessary. All the rules and regulations of the SEC should be keenly followed to create a security token in an ideal manner.
  • After getting approval from the SEC, creating a security token using the ERC1400 token standard is highly necessary. By following all the token-creating parameters, security tokens can be created easily.
  • Security tokens can be created in two ways (i.e.) developing by oneself and developing using a service provider. If you have more technical knowledge of ERC1400, you can create a security token on your own. Developing a security token on your own includes many risk factors as if any mistakes occur then the total security token will get collapsed. On the other side, you can approach a renowned security token development service provider in the crypto ecosystem. They’ll guide you in creating an ERC1400 token in a highly secure manner.
  • If you are choosing a security token development service provider for your ERC1400 token creation, then you should provide the token details like token name, symbol, the total supply of the tokens, other details, etc.

Then, finally, you can deploy your security token. By following the above-mentioned steps, you can create your security token in a hassle-free manner. There are numerous benefits to creating ERC1400 tokens. Now, we shall discuss those benefits in brief.

Benefits of Creating ERC1400 Tokens

  • Complete ownership will be offered to the token holders.
  • High-end security.
  • It offers options for fund-recovery procedures(Enables forced transfers).
  • Transactions can be made in a highly transparent and secure manner.
  • The value of assets can be divided into smaller values so it offers fractionality of assets.
  • Larger liquidity.
  • Larger market efficiency.

A piece of additional information is, as per the expert’s opinion, STO is considered the safer and ideal method of crypto crowdfunding because of its security features. Launching a fully perfect ERC1400 token will help you to reap more profits for your crypto business. On considering the security factor, many startups and entrepreneurs are interested in creating security tokens using the ERC1400 token standard for their business. So, ERC1400 tokens are the most preferred tokens in the crypto marketplace.

There are many ERC1400 Token Development company prevailing in the crypto ecosystem. But most of them are inexperienced ones in the crypto ecosystem. Hence, the ERC1400 token development service provider should be chosen in a precautious way. Icoclone stands as one of the top-most Ethereum token development company in the crypto ecosystem. Then,

Why Choose Icoclone for Your ERC1400 Token Development?

Icoclone is one of the top-notch ERC1400 Security Token Development company in the crypto space. We have a team of skilled and well-experienced developers who are well-versed in ERC1400 development. So we are experts in creating security tokens based on your business requirements. Not only in security token development, but we also have experience in developing all types of crypto tokens like ERC20, TRC20, and BEP20. Moreover, we also offer ICO scripts, STO scripts, etc. To develop your premium ERC1400 token, you can approach Icoclone to create your security token promptly in the crypto ecosystem!!!.

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