This standard defines a new way to interact with a token contract while remaining backward compatible with ERC20.
It defines advanced features to interact with tokens. Namely, operators to send tokens on behalf of another address—contract or regular account—and send/receive hooks to offer more secure control over tokens by regulating entities.
It takes advantage of ERC820 to find out whether and where to notify contracts and regular addresses when they receive tokens as well as to allow compatibility with already-deployed contracts.
Also it provides features likle whitelist where token holders limited to spend their tokens and freezing addreess support.
In addtion it provides documentation refernce of regulation
This standard tries to improve the widely used ERC20 and ERC777 tokens standard. The main advantages of this standard are:
- Suitable for goverment regulation and related institutions
- More powerful control
- Transparency
- Compatability with ERC20 and ERC777
- Flexability to use for exchanges and escrow but prevent abuse
- Ability to add legal document titles and links
- Send addresses optionally could be whitelisted to prevent non regulating activities
- Issuer can appoit a 3rd party representive (e.g. legal trustee, law enforcement) to manaage a token holder token balance
- Any token holder address can be frozen to send by token contract owner
- Recieving addresses are checked against the issuer whitelist to ensure they are legally allowed to recieve token.
- Tokens must be mint by contract owner before to use it
- Tokens can be burned by assigned operator which is authorized by token contract owner
- A seperate whitelist is maintained specifically for deposit only addresses. Most cryptocurrency exchanges currently generate a unique specific eth address for each user to deposit their tokens.
- Deposit only addresses can only be added by exchange operators
- Deposit addresses can only send tokens to whitelisted addresses by the issuer. They cannot send to another deposit address.
Sample Implementation (On Kovan) https://kovan.etherscan.io/token/0xfff2c7ac2fcd0d05a56323cd39272505c8c020c4
[Issuer] 0xd0a9a166e4dad3a314148e03451ba20e08cce172 [Investor] 0xe694ca0238f5771eec6e4b4ef44b6e4fa59811c6 [Exchange Deposit address] 0x213353406af8bc04023e497a9997903509615718 [Exchange Hot Wallet] 0xc77226e6117c7e86366597f80a3762ba7704a436