Chapter 1, Introduction to Blockchain, gives an overview of blockchain technology, along with the key concepts involved, including the distributed ledger, transactions, blocks, proof of work, mining, and consensus. It covers bitcoin, the mother of blockchain technology, and Ethereum, which developed out of bitcoin, in detail.
Chapter 2, STO – Security Token Offering, talks about traditional fundraising methods such as angel funds, venture capital (VC) funds, private equity funds, and initial public offerings (IPOs). It then covers the blockchain project's specific funding method, ICO. Drawbacks of ICOs have been discussed as well. STO has been introduced as a promising alternative to ICO. The chapter compares STOs and ICOs. It ends by pointing out some of the challenges related to STOs.
Chapter 3, Monetizing Digital Tokens Under U.S. Security Laws, answers the question, "What is an STO under U.S. securities law?" It gives an overview of applicable U.S. securities laws, talking about the developments in U.S. securities laws related to blockchain and cryptocurrency. It then explains the process of STO launches, along with some legal considerations. The chapter mainly focus on U.S. securities laws.
Chapter 4, Stablecoin, talks about the definition of money, along with its basics. It then proceeds to a discussion on the concepts of cryptocurrency and stablecoins. It explains the rationale behind the implementation of stablecoins and discusses the types of stablecoins on offer. At the end, the chapter covers the challenges faced by stablecoins.
Chapter 5, Security Token Smart Contracts, covers popular security token standards such as ERC-1400/ERC-1410, R-Token, DS-Token, SRC-20, ST-20, S3, ERC-884, ERC-1450, and ERC-1404. The chapter helps to enrich the reader's knowledge of security token protocols. In addition, it talks about solidity programming fundamentals and explains how to write a smart contract.
Chapter 6, Building a Security Token Dapp, demonstrates how to develop an end-to-end product, from smart contracts to Dapp, to issuing an ERC-1404 security token. The chapter covers some basic concepts only. In a real application, the security token will be far more complex. Many security tokens run on an elaborate ecosystem and need to comply with the SEC's regulation on securities trading. For example, the security token smart contract needs to incorporate real-world legal contracts.
Chapter 7, Stablecoin Smart Contracts, reviews the basic features of popular stablecoins and covers three types of stablecoins, including fiat-collateralized stablecoins, crypto-collateralized stablecoins, and non-collateralized stablecoins. Then, it looks into USDT, DAI, TUSD, USDC, GUSD, and PAX stablecoin smart contract design, exploring the functions defined in these contracts. The chapter explains how each stablecoin type maintains the 1:1 price pegging through mint, burn, and other controllable functions.
