How Does a Smart Contract Enforce the Rules of a Token Standard?
A smart contract is the executable code deployed on the blockchain that defines the token's logic. It contains functions and variables specified by the token standard (e.g. transfer for ERC-20).
The contract's code is immutable and automatically executes the rules, ensuring that all tokens created under it follow the specified behavior, such as preventing double-spending or unauthorized minting.
Glossar
Smart Contract
Code ⎊ The contract is fundamentally self-executing code deployed on a distributed ledger, embodying the terms of the agreement in an immutable format.
Token Standard
Architecture ⎊ Token standards define a common set of rules governing the creation and management of digital assets on a blockchain, establishing interoperability between decentralized applications and exchanges.
Rules
Framework ⎊ The operational guidelines governing cryptocurrency derivatives, options trading, and related financial instruments establish a layered system of protocols designed to ensure market integrity and participant protection.