A few weeks ago I published a post around transfer restrictions in Digital Securities and how to interact with the DS Protocol in order to understand the options to hold and trade DS Tokens directly between wallets.
The whole process involved direct interaction with the token smart contracts, using tools like MyEtherWallet and using the DS Protocol ABIs to run the necessary methods. This brought two very different kinds of feedback:
And it’s true. It was too hard.
In the post itself, I looked at the expectation that this kind of ability should be simple and facilitated by wallet providers:
we expect that wallet providers will integrate this into their experiences, so that when dealing with Digital Securities they will be able to inform users about the potential issues with token transfers before they are executed, and even suggest options that will facilitate transfers to be completed
but since we are not there yet, we started to think on how we could bring these capabilities in an easy-to-use way to prospective Digital Securities investors.
Then Shay Finkelstein came to the rescue.
Shay, Securitize's CTO, envisioned a tool that would hide ll the complexity of the DS Protocol smart contracts and would allow any user to do basic checks to see whether they can hold or trade each DS token.
Not only that, he actually built it. We can now present to the world our Pre-Trade Verification Tool, available here: https://www.securitize.io/pre-trade-verification-tool
The mechanism for the tool is quite simple. To begin with, you can choose between two checks:
Let’s start with the simplest one.
Once you pick the “Can I Hold Tokens?” option, a simple option to select a specific token is presented:
Here you can choose from any of the 11 Digital Securities that the DS Protocol is powering to date (but more will follow up soon!).
Once the token is selected, you will be able to get more information on it, including its contract address, in case you are curious and want to check it with your favorite block explorer.
(note that one of the parameters is the blockchain running the token. This is because our tool is also prepared for DS Tokens issued in other blockchains like Tezos or Algorand… but more on that soon).
Then you can provide a wallet address and the tool will automatically check if it is authorized to hold this token, and in case it is not, where to go to get it authorized.
If you select the, “Can I Transfer Tokens?” option at the beginning the process is very similar. You will start by choosing one of the available tokens again, but then the, “Check Transfer” section will allow you to provide 3 values:
The tool will instantly check the proposed transaction and indicate whether it is valid or not. And in case it is not, the reason and possible solutions. For instance in the example above the transfer is not possible because the destination wallet for the tokens is not allowed to hold them. The tool then provides a suggestion on how to properly register the wallet.
If the transfer is valid, you will get a success message:
As you can see, the tool is very easy to use and provides a lot of useful information about available DS Tokens and the opportunities to hold and trade them. Give it a go and let us know your thoughts about it!
As I said before, we believe wallets will eventually include this mechanism so you will be able to get this same experience without having to use a separate tool. We will let you know as soon as the first ones start to provide this capability. And many more to come!
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