FT Chain — Protocol Controlled Assets

FT Chain
FT Chain
Nov 13, 2019 · 3 min read

With more and more complex assets being put on the blockchain, there is a need for different requirements and abilities of tokens, such as rules for circulation.

Currently, no matter if it is a tokenized asset like BTC, ETH or EOS, or contract assets like ERC20, blockchain assets circulation attributes are similar to cash. In other words, it can circulate without limits.

In the token economy, the process of issuing tokens is mapping more attribute assets on the blockchain, such as equity and bonds. The attributes of these kinds of assets have huge differences compared to cash, and they have many limits. For example, non-tradable shares need approvals from shareholders or regulators before trading. If the issued tokens all have cash attributes, this can cause major issues in the token economy, holding back the tokenization of more complex assets.

In theory, the contract assets like ERC20 can limit the circulation of assets, but their circulation restrictions can only be placed together with the attribute description of the asset. The more complex the contract is, the more likely to have bugs that will reduce the security. Meanwhile, the status data of the contract stores the assets of all users. Once a bug occurs, upgrading the contract is also very difficult.

Through the innovation of Protocol Controlled Assets, which correspond to the tokenized demands of multiple attributes of assets, and combined with Standardized Token Assets and smart contracts, we can make it happen. The asset characteristics of Protocol Controlled Assets are only controlled by native components, and the smart contract controls its circulation rules. Even if there are some security issues with the contracts, it will not influence the asset amount and mathematical logic during the circulation, such as total amount, issue limits, etc. The control is restricted to the level of circulation, and it can be resolved by upgrading the contract.

Protocol Controlled Assets (FT Chain) Architecture Diagram

Protocol Controlled Assets not only enrich the types of Standardized Token Assets, but also strengthen the controllability of the asset circulation process.

For example, if one type of asset can only be traded between the special accounts, similar to the KYC rule in traditional financial industries, it can be solved through the account limit of the Protocol Controlled Assets.

The Protocol Controlled Assets of the FT Chain can not only support account limits, but can also support functions like time limit, amount limit, authorization limit, prohibited transaction, and more, to fulfill the various demands of most types of tokenized assets.

Have you read the FT Chain Whitepaper yet? Check it out here!

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Future financial system infrastructure centered on the token economy

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