EEA forms target group for token standardization

13.02.2018

Enterprise Ethereum Alliance (EEA), which promotes and supports Ethereal-based technologies and standards, intends to form a task force to work on the specification for tokens that work on the basis of Ethereum and the private blockchain, Ron Resnick, the executive director of the alliance, said.

Notably, the target group will do this not only for assets whose units are interchangeable, like corporate stocks, but also for individual tokens with unique properties, such as CryptoKitties. Among the options and digital certificates for diamonds.

“We are creating a token task force; we will do that first half of this year,” Resnick said. “It’s going to be focused on support for fungible ERC-20 and non-fungible, ERC-721 tokens.”

 

Under tokenization is the creation of tradable assets on the blockchain, separately from its own currency (Ether in the case of Ethereum). According to the ideas of the representatives of the EEA, the creation of a business-level specification for this process can facilitate corporate implementation of the technology, the main purpose of which is to raise funds for start-ups, which is often questionable from a legal point of view.

“We want to create a token specification standard for enterprise tokenization so basically [assets] can be managed in a much better way with more assurance than what’s happening today,” Resnick said.

 

The creation of the target group is the first direct technical approach of the EEA to the phenomenon of tokens, which has covered cryptocurrency in recent years - during the boom of the primary token allocation (ICO) in 2017, and the placement of tokens-stocks (HUNDRED) today.

“Since the explosion of ICOs there has been an incredible technology development in the open source community around token standards. Whether it’s ERC-20, ERC-223, ERC-721 and beyond – there are quite a lot of them,” said John Whelan, the blockchain lab director at global banking giant Santander, and head of the EEA board.

 

Resnick said the new initiative was under wraps now but added that the project will not only assist in enterprise tokenization but also “build better confidence in the public world,” following “the speculative craziness of what happened in crypto.”

According to Resnik, the project will not only help in the tokenization of enterprises, but also “strengthen public confidence,” following “the speculative insanity of the cryptocurrency world.”

After the EAO specifications and standards are approved, the industry group will work to help Ethereum and its private options interact with other blockchains.

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