In my Security Token 2.0 Thesis article, I presented a series of ideas for the next wave of security token platforms. Some of those ideas covered highly sophisticated topics such as governance or pricing models that I think are vital for the mainstream adoption of security tokens. However, the transition to Security Token 2.0 architectures is going to take some time.
Lately, I’ve been spending some time diving deeper into some of the most popular platforms in the security token space and correlating their capabilities with some of the tokenization scenarios I am being presented with. As a result, I’ve put together a list of basic capabilities I believe can really improve the current generation of security token platforms helping issuers, investors and developers together. In my opinion, these capabilities are natural extensions to the existing security token platforms that don’t require drastic changes in the current architectures. Here are five of my favorite capabilities. As always feedback is welcomed as long as its rational and doesn’t entail hate email 😉
The programming models for most security token platforms is pretty rudimentary compared to some of the more mainstream blockchain protocols. As a result, we are still not seeing blockchain developers super excited about the security token space and no relevant third parties are building DApps on the current group of security token platforms. Obviously, this is also a reflection of the youth of the security token space.
2-A Smart Contract Catalog
As security token platform evolves, it’s almost certain that they will create different smart contracts that abstract many of the regulatory or integration components of crypto-securities. There are several classes of smart contracts such as compliance, integration with exchanges or integration with investor pools that are already relevant in security token issuances.
Discovering the smart contracts that available for a specific platform, their expected functionalities, SLAs and responsible parties is a simple feature that can really improve the usability of security token platform. We can envision this feature as a simple smart contract catalog ( a la App Store) in which developer can browse and discover the different smart contracts available for a specific security token issuance.