ICON, a platform that is aimed at providing blockchain interoperability, has announced that it is introducing a new security token standard. The new IRC16 specification will allow token creators to issue security tokens—a special type of blockchain token that represents certain assets and investments.
Unlike Bitcoin, security tokens don’t derive their value from blockchain activity. Instead, security tokens represent ownership of assets like real estate, precious metals, or corporate equity. And whereas ICO tokens have faced regulatory issues over the past year, security tokens are seen as very promising due to their capacity to work within regulations.
The IRC16 Standard
Like other initiatives of its type, ICON’s new standard is meant to facilitate regulatory compliance. IRC16 is intended to simplify security token creation, support smart contracts that manage trading, and, above all, help token issuers comply with rules and regulations. The standard has four important features:
- Check For Token Transfer, which can verify…