The Enterprise Ethereum Alliance (EEA) announced in a press release on Wednesday the formation of a blockchain-neutral Token Taxonomy Initiative in a partnership with major members including Microsoft and J.P. Morgan.
The initiative will work to drive global token adoption by developing a clear definition of tokens and their use-cases — including a common set of terms and specifications for industry use — across all token-compatible blockchain platforms.
Microsoft’s Marley Gray — one of the founding members of the EEA — will Chair the Token Taxonomy Initiative, with other members including Accenture, Banco Santander, ConsenSys, EY, IBM, Intel, and J.P. Morgan.
Oli Harris, head of Quorum at J.P. Morgan, described how the firm is “encouraged by the formation of the Token Taxonomy Initiative, given the developments with Quorum and other blockchain initiatives at the firm.” He continued:
“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.”
The Initiative will work towards creating a common set of tokens, including a Token Taxonomy Framework that is easy to understand and is defined in non-technical terms; and a Token Definition Workshop that will work to define new tokens.
Indeed, having a blockchain-neutral framework to define tokens is a step towards interoperability between blockchain platforms. Loom Network recently made headlines when they announced their intention to bridge gaming assets between the Ethereum, EOS, and TRON networks.
EEA Executive Director, Ron Resnick, concluded:
“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.”