Product Focus
Through the T-REX protocol (now recognized as ERC3643), control and compliance are added to the blockchain and in this case, if the tokens are lost, they can be easily recovered.
This content is taken from the monthly Product Focus newsletter in October 2020.
Why Is Tokens Recovery Important?
According to a recent study (Chainanalysis), around 4 million bitcoins, approximately 20% of those in circulation today, have been lost since the invention of the crypto-currency. If a holder of Bitcoin loses their private keys and wallet-access credentials, the tokens are lost and cannot be recovered because bitcoin tokens are controlled by an algorithm, not by any identified and responsible party.
This highlights the stark difference between crypto-tokens and security tokens issued with the T-REX suite of smart contracts. Through the T-REX protocol, control and compliance are added to the blockchain and in this case, if the tokens are lost, they can be easily recovered.
How is this possible?
Through their digital investment passports ONCHAINID, investors can prove their identity to the issuer or their agent. After the identity is confirmed the Recovery function of the token smart contract is triggered under the full control of the Issuer and the lost tokens are transferred to the new wallet of the investor.
What does this mean?
- Investors can self-custody their tokens without risk
- Investors Recover lost tokens in minutes
- Issuers can be sure the token’s compliance rules will continue to be enforced
How it works:
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