The Enterprise Ethereum Alliance (EEA) has just revealed the Token Taxonomy Initiative (TTI) to “develop a clear definition and scope of the token concept, including use cases, taxonomy and terminology, and a specification.”
Universally defined assets
The goal is to “universally define tokens” so people can garner a better understanding of what they do. Examples of this include how assets interact with blockchains, and the point of tokenization as a whole.
According to a press release, digital assets have turned into a “multi-billion-dollar market” since the inception of Bitcoin (BTC) back in 2009. Then Ethereum (ETH) lifted the bar even further and now we’re at hundreds of assets each with their own unique use cases.
With universally defined terms, the EAA and TTI will move adoption forward and ensure the token creation process is much easier than ever before. While there are all sorts of tokens, reads the post, there’s currently no way for them all to work together. Interoperability is a key factor here.
EEA Executive Director Ron Resnick made a comment on this:
“Standardizing tokens to work anywhere could hold the key to one of the greatest economic opportunities in modern history. Just like standards that led to the rise of e-commerce on the internet, applying standards to tokenization 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.”
Joined by many
Another partner, J.P. Morgan, had a few words to say as well. Coming from Oli Harris, a founder of the EEA and head of Quorum at the financial firm, was the spokesperson:
“J.P. Morgan is encouraged by the formation of the Token Taxonomy Initiative, given the developments with Quorum and other blockchain initiatives at the firm. With this significant step, the industry leaders — from the world’s largest companies and innovative startups — are coming together to define tokenization in ways designed to address the needs of the global enterprise community.”