02-BlogPost_Changes Coming for Ethereum Smart Contracts with ERC-1400_11.01 (1)

Changes Coming for Ethereum Smart Contracts with ERC-1400

By:  TAGS: , DATE: 11/08/2018

ERC stands for Ethereum Request for Contract, and they are documents used by the Ethereum smart contract developer community. Each ERC defines various rules that affect how tokens can be used within Ethereum. There’s a formal process for approving ERCs, with revisions and commentary provided through the community.

 

The main reason for ERC-1400’s development is to improve the security compliance of security tokens offered on the Ethereum network. This is driven by the increase in the number of security token offerings (STOs) and the broader desire to expand the interest in STOs by solidifying them as legitimate investment vehicles. Security tokens are inherently more complex than other token use cases, and this complexity warrants continual ERC improvements. Ideally, security tokens are allowable within any jurisdiction and comply with any regulations, making it a truly global way to securitize real-world assets. This standard is still under development but promises to increase interest in security tokens and allay many regulatory concerns.

 

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