The Enterprise Ethereum Alliance forms the Token Taxonomy Initiative

By Jamie Green – Crypto Dealer

The Enterprise Ethereum Alliance (EEA), a group formed of organisations seeking to develop open blockchain specifications, have announced the formation of the Token Taxonomy Initiative. The initiative is to define tokens universally to better understand their use and implementation to drive harmonisation and interoperability for all token-enabled networks. This will hopefully in turn entice more to buy cryptocurrency.

The concept of tokens and tokenisation is not new but its use within blockchain has the potential to alter business models for goods and services offered by distributed or decentralised applications. Tokenisation within this industry was accelerated by Ethereum as a revolutionary way of recording and representing value and ownership on a blockchain. Any user looking to buy ether to trade a token that runs on the network will be interacting with a token and its standards.

The Token Taxonomy Initiative will make it easier for an organisation to create a token to serve a use within their business. This idea has been done in the past, yet the tokens were non-fungible with a specific use. This initiative will help to show how a token can be interpreted across many different platforms and systems which make up a business. Users could buy crypto native to a business but gain further applications with it.

Defining the standard of a token can enable it to act as or provide access to a set of goods, financial assets, securities, services, value or content through potential enterprise blockchain applications. These can all be conducted without the need to buy Ethereum or the native crypto.

The EEA are sure to introduce standards around tokenisation to increase their potential interoperability. This means that a user could buy EOS or a token on the network for use on the Ethereum network if they were to use the same standards.

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