Understanding Blockchain Transaction Types
1. Mint/Burn
Description:
- Mint: Creates new tokens and adds them to the total supply (mark up).
- Burn: Permanently removes tokens from the total supply (mark down).
Use Cases:
- Mint: Expanding token supply to represent a capital increase or the primary allocation of any instrument type.
- Burn: Reducing supply to represent a buy back or redeem...
2. Freeze/Unfreeze
Description:
- Freeze: Prevents a specific wallet from executing transactions. It can be applied partially or totally on the token supply hold by that wallet.
- Unfreeze: Restores normal functionality to a previously frozen wallet.It can also be applied partially or totally on the token supply hold by that wallet.
Use Cases:
- Enforcing compliance during investigations.
- Resolving disputes or fraud.
- Enforcing a lock period.
3. Force Transfers
Description:
A transaction initiated by an authorized party (must be agent of the issuer) to move tokens from one wallet to another without requiring the owner's consent.
IMPORTANT: Force transfers are by passing the token compliance rules.
Use Cases:
- Addressing compliance violations.
- Reclaiming lost tokens.
4. Simple Transfer Between Investors
Description:
A basic transaction that moves tokens from one investor's wallet to another.
Use Cases:
- Facilitating peer-to-peer transfers.
- Completing purchases or sales of tokens.
5. Swap Transfer Between Investors
Description:
A transaction that simultaneously exchanges tokens representing both cash and security legs between two investors. It is handled in one single blockchain transaction to prevent any dispute or fraud.
Use Cases:
- Secondary market transaction.
- Portfolio rebalancing.
6. Pause/Unpause Token
Description:
- Pause: Temporarily halts all transactions for a specific token. Note that it halts only investor transactions, allowing agents to keep operating.
- Unpause: Resumes normal transaction activity.
Use Cases:
- Emergency responses to security incidents.
- Temporary suspension during upgrades or audits.
7. Qualify an Investor
Description:
Assigns a specific qualification or status to an investor’s ONCHAINID, allowing them to access particular token types or participate in specific transactions.
Use Cases:
- Ensuring compliance with regulatory requirements.
- Enabling participation in exclusive offerings.
8. Add/Revoke Agent
Description:
- Add Agent: Grants an entity or an individual the authority to perform specific actions on the blockchain.
- Revoke Agent: Removes an entity’s authority.
Use Cases:
- Delegating operational responsibilities.
- Revoking access for entities that no longer require it.
9. Recovery Process
Description:
Allows an authorized party to recover tokens in case wallet access is lost, often involving proof of ownership or identity.
Use Cases:
- Addressing lost private keys.
- Assisting users locked out of their wallets.
Summary Table
| Transaction Type | Key Purpose | Examples |
|---|---|---|
| Mint/Burn | Adjust token supply | Issuing new tokens, controlling inflation |
| Freeze/Unfreeze | Manage wallet or token activity | Addressing fraud, resolving disputes |
| Force Transfers | Enforce compliance or correct errors | Recovering lost tokens |
| Simple Transfer | Facilitate basic transfers | Peer-to-peer payments |
| Swap Transfer | Exchange tokens between investors | Trading or rebalancing portfolios |
| Pause/Unpause Token | Temporarily halt or resume token activity | Security incidents, upgrades |
| Qualify an Investor | Assign access rights based on compliance | Participation in exclusive offerings |
| Add/Revoke Agent | Grant or remove operational authority | Delegating admin roles |
| Recovery Process | Restore lost access or recover tokens | Lost keys, compromised wallets |
By understanding these transaction types, users can efficiently manage their blockchain interactions while maintaining compliance and security.