The ERC-1400 security token standard has experienced recent updates.
Importantly, the terms and system-specific functions of “tranche” and “partition” were clarified, along with several additional standards with different uses— which are all covered under the umbrella ‘ERC-1400’ standard.
The team behind Polymath, along with numerous external contributors, have made significant updates to the ERC-1400 security token standard, which introduced just two months ago in October 2018.
The ERC-1400 is essentially an umbrella standard, under which many other standards with different roles, specifications, and responsibilities fall.
Originally, the ERC-1400 was based on the ERC-777 instead of the ERC-20. The initial reasoning centered around several improvements that the ERC-777 tried to capture when compared to the ERC-20.
However, the majority of existing security token standards conform to the ERC-20. To combat this issue, several modifications have taken place.
First, the ERC-1594 was updated to an ERC-20 foundation, rather than an ERC-777. In addition, the partially fungible token standard ERC-1410 can now be used with either the ERC-20 or ERC-777.
The new update also features some clarity regarding tranching.