Enterprise Ethereum Alliance (EEA) is a member-led organization that aims to use the Ethereum Blockchain technology to develop an open-source standard which can be implemented by all industry fields.
The Alliance announced the formation of a ‘Token Taxonomy Initiative’ to define and classify ‘blockchain tokens’. The blockchain tokens will be defined and classified from a non-technical perspective to foster the growth of real-world application of these tokens.
The members of the organization include Accenture, Banco Santander SA, Bank of New York Melon, ConsenSys AG, Cognizant Technology Solutions, Deloitte, National Bank of Canada, Royal Bank of Scotland, T-Mobile USA Inc, Wipro, Web3 labs, Microsoft, JP Mogan and so on.
John Whelan, chairman of the Board of the EEA, and head of Digital Investment Banking at Banco Santander said:
“Token Taxonomy Initiative will be key to ensuring that this next wave of financial innovation will start with cross-platform standards in mind”
Token ‘Taxonomy’ Initiative: The Need of the Hour
Classification of ‘blockchain tokens’ has been the biggest hurdle faced by technology companies and financial institutions in going mainstream about ‘blockchain tokens.’ Securitization or ‘assets being deemed as equity’ is seen as a potential threat to the growth of a decentralized future.
However, ‘interoperability‘ enabled between these protocols would surely benefit the entire blockchain ecosystem; each token will be accountable, transparent and would run autonomously.
The Initiative aims to define and classify the blockchain tokens which can represent anything from financial securities to small value tokens like tickets to an amusement park. The initiative will be Blockchain-neutral i.e. it will be applicable across different blockchain platforms.
The Executive Director of EEA, Ron Resnick said:
“Standardizing tokens to work anywhere could hold the key to one of the greatest economic opportunities in modern history… will enable the enterprise to use tokens to serve as, or provide access to, a set of goods, financial assets, securities, services, value or content through enterprise blockchain applications,”
The members of the Enterprise include major technology firms and financial corporations. They are independently working on blockchain based solutions to their existing functions and protocols like the JPM coin and IBM World-Wire.
Moreover, the biggest advantage of Blockchain is its transparency and its ubiquitous nature. There a plethora of tokens, some of which are fungible or non-fungible, utility or security offerings which create more chaos than efficiency. Therefore, a framework for inter-changeability and price finding devoid of speculation and regulatory disapproval of ‘blockchain tokens’ would benefit the world economy greatly.
The VP of IBM Blockchain, Jerry Cuomo commented on the alliance:
“A common framework to classify tokens, and common language to describe them is an important step towards broader blockchain platform interoperability.”
The FinTech industry is in the process of a transformation towards a tokenized economy. Do you support the transition? Please share your views with us.
Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com