This is the second part of an essay that debates the value proposition of a new blockchain for security tokens. In the first part, we discussed some of the challenges of the current generation of security token platforms that justify the case for a new blockchain for security tokens. Today, I would like to take the contrarian argument and explain some of the arguments against that value proposition. In the same way that several people disagree with my previous article dissecting the case in favor of a new blockchain runtime for crypto-securities, I expect another segment of the community to disagree with the points expressed in this article. My goal is to foment a pragmatic debate based on technical and financial rigor and not in passionate positions.
The idea of a blockchain specialized in security tokens is compelling conceptually but has some tangible challenges both technologically and from the market strategy standpoint. Designing a new blockchain for crypto-securities is a very complex exercise and factoring in the correct challenges can contribute to a positive outcome. Let’s explore some of those arguments in more details from both a philosophical and a technical standpoint.