TokenScript: Establishing the “Rules and Regulations” for Tokens on the Web3 Path

Tokens are a familiar concept as they represent the closest cryptographic infrastructure to us. In the current cryptographic world, tokens are often seen as liquidity currencies or governance tokens for a particular ecosystem. However, this inherent view has greatly limited the actual potential of tokens, which may far exceed our imagination.

Today, let’s explore an application that aims to help tokens break free from established frameworks – TokenScript.

TokenScript is a framework that enhances the functionality, security, and usability of blockchain tokens in various ways. It is a JavaScript/XML framework for blockchain tokens that creates a layer between the blockchain and user devices – the token layer. This is a data/event-driven and context-based layer between the blockchain and the user. At this layer, tokens are the fundamental units for building user interactions with the blockchain.

TokenScript allows token issuers and other trusted authorities to enrich a given token with a wide range of information, rules, and functionalities. They can easily, securely, and privately issue tokens with multiple functionalities on and off the chain without understanding the underlying smart contracts, using TokenScript wallets and network services.

TokenScript, developed by Smart Token Labs, is dedicated to creating a new standard for the tokenized future. It is currently building a composable smart token bridge.

On September 23, 2022, Smart Token Labs raised $6 million in the TokenScript project led by Liang Xinjun, the co-founder of billionaire Fosun International. Investors such as HashGlobal, Bodl, and Distributed Capital participated in this round of financing. The company has now doubled the valuation of TokenScript from $50 million to $200 million. Smart Token Labs raised funds through a Simple Agreement for Future Tokens (SAFT) and will use these funds to further develop TokenScript.

TokenScript is essentially blockchain-agnostic. Its main focus is on Ethereum tokens, but it can be adopted by other blockchains and even combine tokens and interactions from different blockchains. In other words, TokenScript is not a token standard but a token layer standard, enabling wallets, applications, and websites to use any non-standard token as easily as using ERC tokens.

TokenScript enables token issuers to overcome the limitations of smart contracts. It supports adding a wealth of information to tokens, including image files and API lookups, and allows for the design of a set of business rules and interaction logic, including proofs and structured interactions with other tokens.

Additionally, token issuers can easily and securely update token rules using TokenScript.

For wallets, TokenScript enhances their ability as a proxy for users interacting with the blockchain. Currently, most dApps require third-party websites to interpret the blockchain’s state and create smart contract transactions. When wallets import TokenScript, they will gradually learn to understand smart contracts and create the necessary transactions.

Furthermore, TokenScript allows token issuers to design token GUIs in wallets, create various complex transactions, and attach off-chain functionalities. With TokenScript, any token can unlock custom mini-programs in wallets.

For web and application developers, TokenScript can be deployed into their applications. It allows them to securely integrate all token functions and trigger specific token-related operations within user wallets. Without TokenScript, they would need a deep understanding of blockchain and smart contracts and invest a lot of work to integrate each token. With TokenScript, developers only need a very basic knowledge.

TokenScript’s capabilities are quite comprehensive. Here are its basic functionalities:

1. Information: When a token integrates TokenScript, wallets or web applications can immediately understand its name and abbreviation, and obtain descriptions in multiple languages for the token, as well as image files as logos. Wallets can even query APIs.

2. History: In the past, wallets could only record transactions themselves. With TokenScript, wallets can record a detailed history of operations involving tokens, both on-chain and off-chain.

3. Creating Custom Transactions: Smart contracts often require users to create custom transactions, which are usually done by third-party websites and require user wallets to authorize signatures. TokenScript can instruct wallets or web applications to create these transactions, which can be triggered with a single button.

For websites, this feature is quite significant because it means that web developers only need to import a TokenScript to implement one-click transaction deployment, without having to study each smart contract and create transactions themselves.

1. Integration with Other Tokens: Some token operations may require users to hold another token. For example, a car-sharing token may require users to own a car token and an insurance token. TokenScript can define and build these integrations.

2. Authentication: Tokens have authentication issues, whether through email or from government agencies. TokenScript can directly trigger the authentication process in the user’s wallet and allow other parties to verify it. In this model, the wallet can privately store and use any type of proof document.

3. Restricting Operations: TokenScript can restrict the scope of operations. For example, if a user holds a token for a World Cup match, they can choose to sell it, but only if the match has not yet ended. At this time, TokenScript can define