According to David Sag’s standard, each ERC-884 token designates a particular stake in a Delaware corporation. The standard is intended for equity transactions, and the smart contract includes a mechanism for requiring the token’s owner to be whitelisted. On the other hand, ERC-884 issuers must set up an off-chain private database to adhere to securities laws.
Due to the new rules, businesses in the US state of Delaware can now handle share registrations using blockchain technology. Each token will be classified as a share of a corporation established in the state of Delaware per ERC-884.