This is the second part of an article that explore ideas about the emerging field of security token networks. The first part discussed some of the economical and technological foundations of the security token network thesis. Today, I would like to focus on the technical building blocks of such solutions and their relevance to security tokens.
Recapitulating some of the ideas outlined in the previous article, security token networks are likely to become one of the most interesting trends in the near future of security tokens. Conceptually, security token networks are permissioned blockchains that provide the native constructs to issue, distribute and trade security tokens. An important aspect to notice is that the ultimate manifestation of security token networks should be a small number of large blockchains that bring together retail investors and institutions and that enable access control and privacy across different segments of the network. In its initial incarnation, there are three fundamental elements to the value proposition of security token networks: