HOW TO ISSUE AND ANCHOR ASSETS ON STELLAR?

One of the primary functions of Stellar is the ability to issue assets. It is possible to tokenize any asset, and then trade or transfer it across on the Stellar network. It is easy economically, efficiently, and by anyone (from banks and money service companies as well as payment processors, local communities, companies and even individuals). You can also tailor these assets to particular use scenarios with the aid of Stellar's built-in systems to place them for sale on Stellar's Stellar decentralized exchange and make use of market-making robots to take advantage of Stellar's global reach, and provide the necessary liquidity. Presently it is the process of tokenizing fiat currencies to improve processes such as international payments is the most significant application for Stellar.

Anatomy of an Asset

The two main characteristics of each Stellar Asset are: 

The Asset Code

There are two formats that can be used for the asset code i.e. the alphanumeric 4-character maximum as well as alphanumeric 12-character max. It's an identification code that allows prospective token holders to comprehend the significance of your token.

The Issuer

The assets on stellar are made through a payment process. This means that the issuer account is the one that pays for the asset it's issuing. The transaction made by the account that issued it creates the asset in the network. The account that issued the payment is in charge of the asset and the control over it.

These traits are used to determine the asset's location that is listed on Stellar to allow interaction. Sometimes assets have codes that overlap since more than one company may issue a credit for the same asset. This is why using the issuer's name and asset code permits the asset being uniquely identified. The credits that are represented by these tokens of excellence can be used to redeem anything outside of the network, for instance, bonds, fiat currency carbon credits, gold and so on. In the event of issuing an currency, it must be used in conjunction with the correct ISO 4217 code and in the case of issuing bonds as well, the stock must be used using the appropriate ISIN number.

Trustlines

Trustlines are account-level entries that are created using the change_trust procedure. Every account needs to create trustlines before it can hold assets that is issued by a different account. It is a way to identify both the issuer as well as the asset's code. Trustlines have a variety of functions:

  • The minimal lumen reserve by 1 reserve (currently 0.5XLM) and keep track of the balance of the account.
  • Limit the amount of assets that is held in an account.
  • Track the liabilities.

Trustlines should have sufficient reserves to meet its selling obligations and stay under its limit to meet the buying obligations.

Amount Precision

Asset amounts are encoded in encrypted 64-bit integers within the XDR structures. Stellar utilizes this structure to encode transactions. To get the native representation in 64-integers the asset quantity unit (as perceived by the users) is reduced in a multiplier of 10 million.

The figures are represented using int64s. The values of the amount are saved as signed integers in order to avoid any issues that can arise due to mixing signed and unsigned integers.

Relevance in Horizon and Stellar Client Libraries

The number encoded by the integer is abstracted in side-by-side client and Horizon libraries such as js-stellar-sdk. Certain programming languages, such as JavaScript encounter issues while maintaining the precision of a particular number. Many APIs require to be able to display the amount in unit, i.e., the increased amount that is displayed to users. Therefore, we suggest you utilize the "big number" library that can create decimal numbers of arbitrary precision without losing any accuracy.

Lumens (XLM)

The primary currency used by the Stellar network, Lumens (XLM), is the sole asset that does not require an issuer or trustline. The transaction fees are all payable in lumens. Therefore, it is mandatory that each account has at least a certain amount of lumens. The smallest unit of measurement is "Stroop," i.e. one ten-millionth of one lumen.

Issue an Asset

Instead of using the procedure of a specific procedure the assets in Stellar are created using the use of a payment process. The issuing account processes the payment using the asset that it is creating and the transaction creates an asset that is available on the network. It's a straightforward procedure that requires the following four steps:

  1. Operation to establish an issuing account
  2. The operation to create an account for distribution
  3. Operation to establish a trust line
  4. The process of making a payment

Although you aren't required to transfer assets to a designated distribution account, it's advised to distribute the funds to any account that has the trustline that is required. However, you should be aware that in order to establish a token that is accessible to the public it is necessary to have a fundable account in order to create the required XLM to create, issue and dispersing accounts.

Read More : https://www.leewayhertz.com/issue-assets-on-stellar-blockchain/




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