Dusk Network: The Best of Both Worlds
- They are heavily regulated, businesses have to go through a vetted process to become eligible for STO issuance, and in contrast to utility tokens, security tokens are backed by something valuable whether it be equity, debt, earnings, or voting power.
- The first important requirement that is demanded from a digital platform that will be used to manage and trade financial assets such as equity is called instant settlement finality (ISF).
- The problem that a block may be “orphaned” or better said, rejected, after a transaction has already been included, is ever-present in Proof-of-Work (POW) chains such as BTC and ETH.
- The reason why most blockchain services require a set number of confirmations before acknowledging the transaction is to prevent that the first block that contains the transaction is rejected or reversed and thus orphaned.
- POW blockchain protocols such as ETH and BTC cannot provide instant settlement finality and are thus already excluded at the first hurdle as a feasible option.
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