ERC-884 Summary
- ERC-884 is a standard for tokenizing Delaware state corporation shares on the Ethereum blockchain.
- It aims to create a secure and compliant way to issue and manage corporate shares.
- The standard ensures that token holders are verified shareholders of the corporation.
- It integrates KYC (Know Your Customer) and AML (Anti-Money Laundering) compliance.
- ERC-884 enhances liquidity and accessibility for corporate shares.
ERC-884 Definition
ERC-884 is a proposed Ethereum token standard specifically designed for representing and managing shares of Delaware state corporations on the blockchain. It aims to ensure legal compliance by incorporating identity verification and regulatory adherence within its framework, thereby creating a secure and transparent method for issuing and trading corporate shares.
What Is ERC-884?
ERC-884 is a token standard on the Ethereum blockchain that represents shares of Delaware state corporations.
It allows these shares to be issued, managed, and traded in a compliant and secure manner using blockchain technology.
By tokenizing corporate shares, ERC-884 aims to enhance liquidity and make it easier for shareholders to manage their equity.
Who Developed ERC-884?
ERC-884 was developed by David Sag and the team at The Brooklyn Project.
The Brooklyn Project is a collaborative initiative aimed at fostering innovation and regulatory compliance in the blockchain space.
They created ERC-884 to address the need for a legally compliant method of tokenizing corporate shares.
When Was ERC-884 Introduced?
The ERC-884 proposal was introduced in 2018.
It was designed to fill a gap in the market for a compliant and secure way to tokenize corporate shares.
Since its introduction, ERC-884 has been discussed and refined within the blockchain community.
Where Is ERC-884 Applicable?
ERC-884 is specifically applicable to corporations incorporated in the state of Delaware, USA.
Delaware is a popular jurisdiction for corporate registration due to its business-friendly laws.
By focusing on Delaware corporations, ERC-884 leverages existing legal frameworks to ensure compliance and security.
Why Was ERC-884 Created?
ERC-884 was created to address the need for a compliant and secure way to tokenize corporate shares.
Traditional methods of issuing and trading shares can be cumbersome and lack transparency.
By using blockchain technology, ERC-884 aims to simplify these processes while ensuring compliance with KYC and AML regulations.
How Does ERC-884 Work?
ERC-884 works by integrating identity verification and regulatory compliance into the token issuance process.
Each token represents one share of a Delaware corporation and is issued to verified shareholders.
The standard ensures that only eligible individuals or entities can hold and transfer these tokens, thereby maintaining legal compliance.
By leveraging smart contracts on the Ethereum blockchain, ERC-884 automates and secures these processes, making corporate share management more efficient and transparent.
