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      Tokenization Glossary

      To better leverage Tokeny's Solutions to their fullest, it is helpful to understand the semantics behind tokenization, our solutions, and the blockchain in general. We recommend going through Tokeny's Documentation with this handy list of definitions.

       

      PS: this is not an exhaustive list, but please let us know what is missing and we'll happily add it to our small collection!

       

      Integration

       

      SSO - Single Sign-On; is an authentication method that enables users to securely authenticate with multiple applications and websites by using just one set of credentials. Tokeny's single sign should be used if the subscription module is integrated as an API.

      IdP - Identity Provider. We leverage AWS Cognito.

       

      Smart Contract

       

      ERC-3643 - An Official Standard for Permissioned Tokens.

      The ERC-3643, previously known as the T-REX protocol, is an open-source suite of smart contracts that enables the issuance, management, and transfer of permissioned tokens. $28bn worth of assets have been tokenized through ERC-3643.

      Smart Contract - is an automatable and enforceable agreement. When utilizing Tokeny's APIs, you will be interacting with various Smart Contracts.

      Here is the list of some of the most important Smart Contracts of the ERC-3643:

      • Permissioned Tokens; T-REX permissioned tokens are based on the ERC-20 standard, but allow you to implement a lot of additional functions to give the owner or the agent the possibility to manage supply, transfer rules, lockups and everything that could be required in the management of a security.

      • ONCHAINID; is the smart contract deployed by a user in order to interact with the security token (and potentially for any other further use where their onchain identity might be relevant).

      • Trusted Issuers Registry; this smart contract stores the contract addresses (ONCHAINID) of all the trusted claim issuers for a specific security token.

      • Claim Topics Registry; this smart contract stores all the trusted claim topics for the security token. The ONCHAINID of token owners must have claims of the claim topics stored in this smart contract.

      • Identity Registry (IR); not shareable between tokens, it is specific to a token. It points to a Claim Topics Registry that contains the claims required for that token, and to a Trusted Issuer Registry that contains the list of claim issuers that are trusted to issue claims, as well as the details of which claim issuer can issue which claim. The identity registry implements an investor's eligibility verification function as well.

      • Identity Registry Storage (IRS); shareable between tokens. It is the database on which the identity registry relies to know the onchainid address linked to a wallet that tries to send/receive tokens, in order to be able to perform the eligibility checks on it.

      • Compliance; the Compliance smart contract is used to set the rules of the offering itself and ensures these rules are respected during the whole lifecycle of the token

      For additional information please see the T-REX whitepaper; https://tokeny.com/wp-content/uploads/2020/04/Whitepaper-T-REX-Security-Tokens-V3.pdf

       

      ONCHAINID

       

      Feel free to visit the ONCHAINID documentation.

      OID - ONCHAINID: the OID is the digital passport of all parties on the blockchain.

      Claim - a claim is a visa, or proof, attesting that something is true. The claim proves that something is true for the ONCHAINID (OID) it is issued on. As such, there is an unlimited number of different possible types of claims, and for that reason, an OID can hold as many claims as needed.

      Let's list a few different types of claims:

      • One type of claim is the eligibility of an investor ONCHAINID to buy and hold a specific token.

      • Another type of claim could be regarding the information of the investors. A claim could be issued on an investor OID to prove that this investor is older than 21 years old.  

      Claim topic - string that represents the claim on the blockchain. For example, a KYC claim can have as topic "19000000001".

      Claim type - functional description of the claim. For example "SPECIFIC_KYC_STATUS". 

      Claim Issuer - when an Issuer issues a new security token, they have to define specifications, including who they trusts to emit the claims needed to hold their security tokens. The "Claim Issuer" is a third-party trusted entity, that will stamp the claim (visa) on the ONCHAINID (passport) of the approved investors.

       

      LINGO

       

      QM - Qualification Module

      SM - Subscription Module

      SC - Smart Contract

       

      Blockchain

       

      EVM - Ethereum Virtual Machine. The EVM is a quasi "Full Turing" system, allowing to deploy smart-contracts and guaranteeing their immutability and their functioning on the Ethereum blockchain in exchange for deployment fees, also known as gas.

      Like other blockchains, Ethereum allows the interaction of many nodes on which programs run.  The virtual machine of Ethereum allows to guarantee the safety of the programs functioning on it and interpret and compile these programs written in Solidity, allowing the functioning of smarts-contracts.

      It guarantees three crucial operations for the development of smart contracts and dApps:

      1. The validation of transactions, signatures and addresses.

      2. The calculation of transaction fees.

      3. The different transactions.

      RPC - Remote Procedure Call: An RPC is a straightforward API in which developers can communicate with servers to execute code remotely. We collect information from the blockchain using our own RPC with automatic failover backups. RPC entertain GET and POST operations only as blockchain data is immutable.

      Custodial wallet - it is a platform that holds the private key of the wallet. The private key cannot be lost. Trust is put into a third party. Tokeny never holds any keys nor creates wallets. With our integrated custodial partners, automation can be done for the Issuer & Agents' wallets.

      Non-custodial wallet - Also called a user-managed wallet or light wallet. The Investor is responsible for his/her private key and therefore can lose access to his/her wallet. With the ERC-3643, the investor can recover their token anyway after proving their identity to the owner that can action the "recovery function", forcing transfer to a new wallet.

      MPC MultiSig Wallets - same finality as a single signature wallet, however, everything is secured off chain.

      CEX - Centralised EXchange, these trading platforms on which digital assets can be obtained via an intermediary, the exchange site.

      DEX - A decentralized exchange, is a peer-to-peer marketplace where transactions occur directly between traders.

      MTF - Multilateral Trading Facility, is a European term for a trading system that facilitates the exchange of financial instruments between multiple parties.

       

      Legal

       

      PEP - Politically Exposed Persons

      KYC - Know Your Customer; refers to the protocol for verifying the identity of a customer, whether an individual or a legal entity (the term KYB, for Know Your Business, can also be found here).

      KYT - Know Your Transaction, the aim of KYT is to complete the KYC procedure by identifying risky transactions, particularly in order to improve the regular monitoring of the customer relationship.

      ML/TF - Anti-money laundering / terrorist financing obligations