Common Language Blockchain Initiative Announced
As blockchain technology pushes ever more rapidly into the mainstream, one of its challenges is the growing number of platforms. This week, the Enterprise Ethereum Alliance announced the formation of a Token Taxonomy Initiative to "define a token in non-technical and cross-industry terms using real-world, everyday analogies so that anyone can understand them."
Nevermind what a token is (here's a simple primer if you want some basics). It's enough to know they represent a "thing." Tokens represent and record value and ownership on a blockchain's distributed ledger. With the proliferation of blockchain platforms, the need to create a common language to provide interoperability.
As a sign of the widespread interest and growing adoption of blockchain beyond its roots as a way of trading cryptocurrencies, some of the world's leading companies are participating in the initiative. Microsoft's Marley Gray, an EEA board member will chair the project. Accenture, Banco Santander, EY, IBM, ING, Intel and J.P. Morgan are participating in the effort.
“As blockchain adoption accelerates, it’s important to work together to develop a common understanding of the token model, provide a common set of definitions, and assure interoperability through best practices and standards,” said Gray. “With a standardized global approach, the Token Taxonomy Initiative will form the foundation of critical standards in tokenization that could streamline the way entire industries and ecosystems work on a blockchain.”
The first draft of a Token Taxonomy Framework is planned for later this year.
Image by Tumisu from Pixabay