Stellar has the ability to issue assets as one of its core features. Stellar makes it easy to tokenize assets and trade them over the Stellar network. It’s easy to do, it’s quick and economically possible, and anyone can do it (banks, money service businesses and payment processors, local communities and enterprises, as well as individuals). Stellar offers a number of options to help you tune your assets for specific purposes. These assets can be listed on the Stellar decentralized market and used by market-making robots to take advantage of Stellar’s global reach to ensure that they have the liquidity required. Stellar is currently focusing on the tokenization and optimization of cross-border payments processes.
Anatomy and Function of an Asset
These are the two hallmarks of any Stellar asset
The Asset Code
Two supported formats are available for the asset code: the alphanumeric 4-character maximum, and the alphanumeric 12 character maximum. It is an identifying number that allows token holders to identify what your token is.
The Issuer
A payment operation creates assets on stellar. The account issuing the asset is called the issuer. The network asset is created by the payment made to the issuing account. The asset’s control and management are the responsibility of the issuing bank.
These characteristics allow Stellar to identify the asset for interaction. Sometimes asset codes overlap, as multiple organizations can issue credit representing the same asset. Each asset can be uniquely identified by the combination of the issuer code and the asset number. These stellar tokens allow you to redeem anything outside of the network. This includes bonds, fiat currency and carbon credits. When issuing currency, it should have the correct ISO 4217 code. If issuing stock or bonds, it should have the appropriate ISIN number.
Trustlines
With a change_trust operation, trustlines are account-level entries that persist. Each account must create a trustline in order to hold assets issued by other accounts. It identifies both the issuer as well as the asset code. There are some functions that trustlines can perform:
- An account’s minimum lumen amount should be increased by one base reserve (currently, 0.5XLM), and the asset’s balance should also be tracked.
- Limit the amount of an asset that is held in an account.
- Monitor liabilities.
Trustlines should have enough cash to meet its selling obligations and enough money to pay its buying obligations.
Amount Precision
Asset amounts can be encoded in XDR structures using signed 64-bit integers. These structures are used to encode transactions by Stellar. To get to the native 64-integer representation, end-users scale down the asset unit by a factor ten million.
Int64s is used to represent numbers. To prevent bugs from arising from mixing signed and unsigned numbers, the amount values are stored only in signed integers.
Read More: https://www.leewayhertz.com/issue-assets-on-stellar-blockchain/
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