How to Improve the Current Generation of Security Token Platforms
Till a century ago, the universe was thought to be permeated with Ether. Today it is know that is not the case. However, this modern age is marked as one being saturated in technology. In spite of this wireless and digitized bubble most people are mystified by it. Yet, the significance of security in this realm is not lost on anyone. While there are online resources aplenty dedicated to topics such as governance or even pricing models one could be well served by having a look at tweaking or adding some basic capabilities that could improve the current generation of security token platforms. Since these are extensions of existing security token platforms , they wont require a drastic change in architecture but will help issuers, investors and developers.
A proper cataloguing of smart contracts:
As time goes by, evolution of the security token platform is almost certain. The most probable direction being a variance of the many regulatory or integration components of crypto-securities. In such a milieu, having a proper catalog to quickly get information about specific functionalities, service agreements, or parties involved; would improve usability.
There is little interest in updating the programming models for most security token platforms. This is in stark contrast to most blockchain protocols. With no blockchain or third party developers looking at the security token platforms, this looks set to continue. While this is understandable owning to the nascency of the security token space, the attractiveness of a simplified process should not be discounted. For examples an interface that allows one to start the issuance of a security token or submit documents or even look up the status of the issuance process.
A bona fide security token standard:
As the industry grows companies involved in this have understood the importance of a standard. The present security token standards are unable to accurately represent the different types of crypto-securities. A possible solution would be to decouple security tokens into different levels of standards. The idea is to have a hierarchy of standard protocols that reflect the behavior of the said security token. For example a basic security standard will make use of KYC and AML of the regulatory aspect while a debt token standard could add dividend payments or arbitration to the general security token standard.
Improving the overall developers experience:
The complexities of coding a security token protocol cannot be overstated. Yet all that manpower and resources will yield a very limited output from a functional standpoint. Therefore, more needs to be done to improve the developer experience. From simple things such as providing a clear pathway to ensure the developer work can be easily integrated into the main platform to providing a proper validating test framework.
Streamlined audit disclosure mechanism:
There is a lack of a clear way to access audit reports pertaining to valuation, company finances or even performance evaluation. All this apparent shroud of mystery does nothing else but discourages large institutional investors from actively participate. Having such a process will also allow for better analysis of indicators and metrics to make optimal use of the statistical and economical data.
As mentioned, this was a small compendium of relatively easy to deliver changes that will positively affect the current group of security token platforms. Other more complex aspects such as better tooling or oracle enablement will be discussed elsewhere.