ICON develops IRC16 to better tokenize physical assets and blockchain based securities

This will be developed on the company’s public blockchain network

This is developed to ensure better security, cheaper fees, and complete transparency

ICON, the cryptocurrency holding the 34th position on the global token rankings, announced on March 8, 2019, on their Medium channel that they have released their own token specifications for 3rd party vendors interested in developing and commercializing assets and securities based on the blockchain.

The newest addition, IRC16 tokens based on the company’s public blockchain network will allow completely transparent issuance of tokenized assets and securities and will also enable its consumers to easily tokenize various physical assets as well via an architecture that is specifically designed to comply with all legal regulations related to asset ownership and transactions.

Real life assets when tokenized help increase the liquidity of high value assets and also expand the size of the existing investor pool by allowing the sale of those assets in smaller token units, while also being able to be a proof of ownership.

We all know how smart contracts act as a mediator that guarantees the settlement of the trade between buyers and sellers thus cutting out the middlemen and simplifying the entire transaction process and greatly minimizing brokerage fees.

This existing traditional process of reviewing and signing contracts can be easily taken care of online. ICON’s IRC16 mainly features four functions:

Check for token transfer: This focuses on verifying whether both the buyer and the seller have gone through the entire know-your-customer (KYC) and Anti-money laundering (AML) processes and limits the number of investors who can initiate and receive token transfers. This also enables the users to know all the details in case a transaction fails.

Token control by the operator: This offers support to users in case of fraud or loss of their private keys.

Document management: As the name suggests this function stores and manages all the legal documents related to the various rights and obligations of token issuers and investors.

Partition: This allows for partially fungible tokens, which allow the issuer to attach metadata which includes the lock-up periods to be built into a certain portion of the tokens.

More development and the company’s roadmap can be found on the official company website.

As reported by the Blockchain Reporter, February 8, 2019, ICON Foundation also developed mobile letters of appointment that will be issued to the Seoul blockchain governance team to avoid falsification of letters and prevent fake issuance.

The blockchain governance team of Seoul made up of one hundred people, will also take part in a pilot blockchain based operation for administration services and give feedback and recommendations between January 2019 and December 2020.