If you are a crypto enthusiast, you will be familiar with terms like ERC20 or ERC1400. These are security token standards built to comply with regulatory requirements while maintaining the need for developing a desirable token.
A security token is used to acquire access to a restricted electronic resource. Many of the properties of both non-fungible and fungible tokens can be found in it. Security tokens are used to represent partial or full ownership interests in assets.
The security token industry needs some common technical standards to profit from the underlying shared network. Through smart contracts, Ethereum has proven to be the most active, stable, and interoperable network among the various networks. The security standards aid in the composability of smart contracts. This ensures that the tokens can be used on current decentralized exchanges.
LCX is a FinTech company that works on different aspects of the crypto industry. It deals with tokenizations of assets, utility and security token offerings, and other advanced trading tools. LCX has been using ERC20 and ERC721 token standards when it comes to security token standards. LCX has developed an asset-backed NFT called TIAMONDS, which represents real-world diamonds with 1-1 ownership rights. These diamond tokens are developed with the ERC-721 token standard and the LCX Liechtenstein protocol. Other than this, LCX has also introduced the TIA token, a deflationary cryptocurrency. This token is based on ERC20 token standards on the Ethereum blockchain.
Security token standards are used to enforce compliance rules and control transfers to eligible investors. These standards allow the development of cryptocurrency tokens on various blockchain protocols. One can also conclude that these standards are a subset of smart contract standards. Currently, Ethereum is the only successful blockchain for developing these standards, but we can expect more such standards from different blockchains in the future.
LCX AG is a company found in 2018 and registered in Liechtenstein No. FL-0002.580.678-2. LCX AG is regulated by the Financial Market Authority of Liechtenstein under the registration No. 288159 as a trusted technology service provider.
LCX AG Herrengasse 69490 VaduzLiechtenstein
LCX AG © 2018-2023. All Rights Reserved