LocalCoin offers some features that will make your integration easier and more secure:
User Issued Assets¶
Any participant can create and issue new (user-issued) assets. The potential use cases for so called user-issued assets (UIA) are innumerable. On the one hand, UIAs can be used as simple event tickets deposited on the customers mobile phone to pass the entrance of a concert. On the other hand, they can be used for crowd funding, ownership tracking or even to sell equity of a company in form of stock.
Obviously, the regulations that apply to each kind of token vary widely and are often different in every jurisdiction. Hence, LocalCoin comes with tools that allow issuers to remain compliant with all applicable regulations when issuing assets assuming regulators allow such assets in the first place. We will discuss the tools and optional administrative rights given to the issuers of a given UIA and provide a subset of possible use-cases in more detail.
Whitelists and Blacklists¶
Some 3rd party service providers may want to select which customers are allowed to hold their assets , e.g. after verified their identity for KYC/AML. Those services can use so called whitelists (or, alternatively, blacklists) of their assets that will prevent unauthorized participants to use this particular asset.
In LocalCoin, account names (life-time members only) and also user-issued assets have their individual whitelists. Hence, if you issue an IOU on the blockchain, you can define who can hold and trade your tokens, if you wish.
User whitelists on contrast can be used by independent KYC/AML providers to state proper verification. An asset issuer may then use those providers to oursource identity verification completely.
Hierarchical Corporate Accounts¶
LocalCoin designs permissions around people, rather than around cryptography, making it easy to use. Every account can be controlled by any weighted combination of other accounts and private keys. This creates a hierarchical structure that reflects how permissions are organized in real life, and makes multi-user control over funds easier than ever. Multi-user control is the single biggest contributor to security, and, when used properly, it can virtually eliminate the risk of theft due to hacking.
In LocalCoin there is no real need for cold storage solutions. Just construct your spending authority using a set of people in your company such as CFO, CTO, and members of accounting and freely chose how much they can do.