Since the advent of blockchain technology, it has become pervasive in its cross-institutional adoption. The over decade-old technology is taking over the most important aspects of our lives ranging from payment systems to data verification and from its use in healthcare to agriculture. The uniqueness of blockchain technology lies not only in its cryptographic framework but also in its eventual decentralization. Businesses around the world are seeing the potentials of the emerging technology and some have moved to tokenize their products to tag along. A major cause for regulators, while blockchain was in its infancy, remains the issue of regulation. A recent move by the world’s foremost tech and finance giants including Microsoft Corporation (NASDAQ: MSFT) and Nasdaq to set global standards for tokenization with InterWork Alliance has met with a loud ovation.
Emergence of InterWork Alliance
The InterWork Alliance is a Non-profit organization formally launched by Microsoft’s principal Architect Marley Gray and Enterprise Ethereum Alliance’s former executive director, Ron Resnick. At launch, the organization had about 28 technology and finance companies in attendance including Accenture, Amberdata, Blockchain Technology Partners, Calastone, Chainlink, DEKRA, Digital Asset, DLA Piper, The Depository Trust & Clearing Corporation (DTCC), Envision Blockchain, HACERA, Hedera Hashgraph, IBM, ING, Microsoft, Nasdaq, Neo Global Development, R3, SIX Digital Exchange (SDX), Tokensoft, UBS, Web3 Labs, and others.
Ron Resnick stated:
“Companies want to be able to create token-based business models without having a platform technology in mind. For this approach to work, standards are urgently needed around defining what a token is and how its contractual behaviors will work.”
With this, InterWork Alliance will be able to unify business leaders and will play a neutral role in helping to define what a token is, how its value can be quantified and other characteristics before the tokens can be programmed. This will enhance transparency which builds trust among customers.
Implications of Businesses and Customers
Tokenization will afford businesses the liberty to define and create what is of value to them which could range from digital currencies to tokens for auction or works of art. By and large, the world through blockchain and its associated innovations are tilting towards financial autonomy from the classic fiat monetary system most countries operate. Provided standards are strictly adhered to, tokenizing businesses might favor customers who will be at liberty to make transactions without the hassles associated with extant financial institutions.
In all, humans are always in a frantic race to attain utopia and tokenized ecosystems may just be a step in the right direction to catch a glimpse of this futile desire.
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