STO Tokens – From $DUSK till Dawn

STO Tokens

DUSK – A Complete STO Ecosystem with Unlimited Scalability

In our last article, we started a short series on STOs. The first part explained what STOs are. From here, we are going over some tokens that might be successful in the future once the ball starts rolling.  Today, we will start with a relatively unknown project that has not yet hit the exchanges: DUSK. Breaking it down, DUSK has the following goals:

• DUSK aims to be much more than just another altcoin.
• The DUSK network is an ecosystem focused on the ownership and trading of
  tokenized securities.
• Built on the Segregated Byzantine Agreement consensus algorithm, DUSK’s
  technology is not just impressive. In fact, it suits the goals of the ecosystem perfectly. Also, these goals are indeed rather ambitious.
• In addition to secure, decentralized, and anonymous payments, DUSK provides a second-layer solution for transacting in tokenized securities and digital assets. Furthermore, it offers low-latency communication and data transfer.

Blockchain initiatives sprang forth. The 2018 crypto bear market has not just been a massive wake-up call for the get-rich-quick crowd. It has also catalyzed progress. Out of the cauldron of hurt it brought about, blockchain initiatives sprang forth that carry actual value. These initiatives offer actual solutions to actual problems.

DUSK is one such initiative. If its white paper is to be held an indication in this regard, its impact – though probably a niche one – may indeed be significant. This is especially true in terms of ushering the securities trading industry into the future. That said, to understand what DUSK does and how it accomplishes these daunting
goals, one needs to know/understand what an STO is.

What is an STO?

Security Token Offerings are often hailed as the evolutionary iterations of ICOs – but they are rather different. STOs are based on tokenized securities, which work exactly as “regular” securities do: they have value and are tradable. Stocks, bonds, options,

and futures are all considered to be securities. As such, they are subject to regulation by the competent authorities (in the US, the SEC – Securities and Exchange Commission is the securities regulator).By putting securities onto a blockchain, liquidity can be improved (24/7 trading becomes possible). In addition, middlemen can be eliminated, management can be delegated to smart contracts, and the entire investment process can be optimized and simplified.

Where does DUSK fit into this picture?

Despite the above-listed advantages, most STOs fall woefully short on several counts.

• They usually operate off fully open ledgers, chucking privacy and all concerns linked to it right out the window.
• while they could indeed eliminate middlemen through decentralization, they are usually centralized and thus employ the services of a middleman – an off-chain one, no less.
• Due to this centralized setup, secondary-market adoption (one of the main draws of the concept) falters. As a result, scalability is nipped in the bud.
• the above considered, it is clear that most STO platforms offer way less than they could/should. In addition, they usually charge too much for it.

The DUSK ecosystem is decentralized, and accessible for organizations of all financial means. It is fully scalable, automated, compliant, and confidential.
While those last two attributes may seem mutually exclusive – according to its white paper – DUSK has managed to marry them off. In fact, the whole STO
regulatory framework compliance is handled on-chain by the ecosystem. This translates to no middlemen and reduced costs.

DUSK’s Ecosystem

The DUSK ecosystem is comprised of three main components:

• a payment system/native cryptocurrency (DUSK), which addresses
  unidirectional value-transfer needs.
• a bi-directional value-transfer system – which handles the tokenized securities,
  their trading, and asset-ownership in general.
• data streaming/communications capabilities are also deemed essential for the
  seamless transaction of security tokens.

This explains why DUSK is much more than a mere “altcoin”. In addition, it drops several clues about the potential value it brings to the securities trading industry.

DUSK’s technology

Unlike more mainstream cryptos – which use Proof of Work and Proof of Stake mechanisms – DUSK has adopted a brand new – and radically different – adaptive
consensus approach. This approach is indeed fairer than PoS and much less computationally-intensive than PoW.
SBA (Segregated Byzantine Agreement), which provides Dusk with protection against double-spending, is derived from the CryptoNote protocol.
It uses specialized nodes called Provisioners, which handle all the computationally intensive tasks of the network. However, they do not compete for block-generation.

More specifically, Provisioners handle verification, voting, and notarization, as well as state channels for communication and distributed storage.
Secure Tunnel Switching – a cryptographically secure method – is the technology used for peer communication.
Only normal, transactional nodes are allowed to compete for block generation. The native currency of the network, Dusk is used, every time a transactional node
becomes a block-generation candidate. The actual process of voting and awarding the block reward is described in detail in the DUSK white paper. It is a very interesting read indeed, which offers a proper explanation of what one might call the “unique selling point” of this crypto ecosystem.

The Dusk digital currency is used to incentivize/reward participation in the network (nodes must be run by someone) and as a means of payment for the services rendered. Dusk is untraceable, unlinkable, and – thanks to SBA – boundlessly scalable.

STO Bottom line

As stated above, with Dusk, crypto-owners get much more than a shallow investment opportunity. They effectively become parts of a fully-fledged digital
ecosystem which may indeed become the future of the securities trading industry.

There is certainly value and potential in this one, and though – at first glance – Dusk’s ambitions may seem like niche ones, the system is not solely focused on the
confidential transfer of tokenized digital assets. It also excels at private, secure data transmission and communication. In addition, it enables private and confidential – as well as allegedly compliant – payments. The token is not yet traded on an exchange as far as we know. However, we would make sure not to buy the initial pump once it gets listed.

Fact sheet for Dusk

• Website: https://dusk.network
• Exchange: Binance
• Total supply: 500000000 DUSK
• White Paper: https://docs.google.com/viewer?url=https://github.com/dusk-network/whitepaper/releases/download/v0.3/dusk-whitepaper.pdf
• Community Forums: https://bitcointalk.org/index.php?topic=4656203.0
• GitHub: https://github.com/dusk-network
• Twitter: https://twitter.com/duskfoundation
• Discord: https://discord.gg/uWc6dbY
• Reddit: https://www.reddit.com/r/DuskNetwork/
• YouTube: https://www.youtube.com/channel/UCAfY3VcuaxAelPp44B253Rw