Blockchain promises to “free communication” and allow its users to make complicated transactions without needing to trust anyone but the system itself. Thanks to that, transacting parties do not need to trust each other and they do not need any third parties like banks, notary services, stock exchanges, etc. to make a transaction happen. If they follow a specific set of rules within the system they can be certain of the outcomes. In other words, all interactions that happen between parties on-chain follow a protocol.WHAT IS A GOOD PROTOCOL?
We do not believe that the creation of a Security Token protocol standard is needed or even possible. Instead, we are committed to defining a few open-source protocols, which are universal (standardized). This allows for the design of many different tokens and the creation of a whole ecosystem of third party apps around them. We do not standardize our app layer. Therefore, developers are able to build many different applications on top of our protocols. Our protocol-building efforts are open for contributions from the community. Neufund does not support the creation of protocols that serve only one specific application.STANDARDIZING SECURITY TOKENS EXPLAINED
All tokens communicating with Neufund have to be legally binding. We do that through building a bridge between the on-chain and off-chain worlds, which bonds off-chain assets with on-chain representations, thus securing the rights of both issuers and owners.
Legally binding tokens allow to cover the meta-programming part that Ethereum lacks in a legal document linked to a smart contract. This creates an additional layer of protection for token holders. Examples of such situations are the fork arbitration clause (what happens if a fork happens?), the bug fixing clause (how do we define the bug and upgrade the code?), the migration clause (partier might migrate to different rules – how do we manage that?) or immutability clause (which parts of a legal agreement cannot be changed due to a link to a smart contract?).
How do we do we make sure our tokens are legally binding?
Used in Equity Token, Neumark, ESOP, nEUR
The Snapshot token lets you keep certain rights after you trade your tokens, for example sell your tokens, but still claim your dividends prior to the sale. It is based on the MiniMe token from Giveth.
Snapshot token is a technical component, that allows to build a number of different features:
Used in: Equity Token, NEU
Instead of trying to standardize functions of a particular controller (like security token issuer), it’s a much better pattern to standardize a token controller interface so that any app can be built on that. Based on the MiniMe token from Giveth.
Token Controller is a way of removing concerns from a token contract into the app layer. Example of token controllers could be:
Used in: Equity Token, nEUR
Our user-friendly interface enables users to easily invest or issue legally binding tokens in a safe environment. Neufund’s interface has been designed with different users in mind, including those who encounter blockchain applications for the first time.
Our platform has a built-in identity verification process, which was designed in full compliance with European Anti Money Laundering regulations. Our KYC saves the verification status on a public ledger.
Thanks to the Light Wallet implementation, investors can easily create a universal blockchain wallet using Neufund’s interface.
Neufund allows issuers to automate their communication with token holders through a governance system. Depending on the type of assets and token holder rights, the system can manage voting processes and information distribution.