July 14, 2020

Market News

InterWork Alliance is striving for global standard for token ecosystems

Tokenization is a mega trend in the field of blockchain technology . Accordingly, it is not surprising that important IT groups such as Microsoft and IBM as well as exchange operators such as Nasdaq are working together to shape this megatrend. The InterWork Alliance is a non-profit organization that works on the development of new frameworks and wants to promote innovations in token-based ecosystems. With this, the companies react to the highly fragmented status quo, which results from different platform types and inconsistent tokens.

Blockchain technology requires further standards

Blockchain technology is one of the most important future technologies. Established IT groups such as Microsoft and IBM have also recognized this. This is also the reason why these companies are constantly working on the introduction of appropriate standards. Appropriate standards are required in particular in the area of smart contracts , tokens and cryptocurrencies in order to ensure increasing adaptation.

Blockchain consortia such as R3 and Hyperledger in particular have worked on the development of suitable blockchain solutions in the past. The B2B sector in particular was the focus of the companies. With the InterWork Alliance there is now another industry association that deals with the development of special standards in the area of tokenization.

There is a list of current members on the official homepage of the InterWork Alliance. This is divided into:

Sponsors, Principal Members and Associate Members.

  • Sponsor Members: Accenture, Digital Asset, Microsoft, Neo and SDX
  • Principal Members: io, BTP, Calastone, Chainlink, DEKRA, DLA PIPER, DTCC, ENVISION, HACERA, Hedera, IBM, ING, Nasdaq, R3, TOKENSOFT, UBS, WEB3 Labs
  • Associate Members: 2Tokens, Blockchain Research Institute, Cloud Security Alliance, DID ALLIANCE, GBBC, GDF, Blockchain District, Hyperledger, ITSA, WTIA

What is the InterWork Alliance’s goal?

The InterWork Alliance wants to help companies to fall back on a uniform standard in the field of tokens.

“Companies want to be able to create token-based business models without having platform technology in mind. For this approach to work, standards are urgently needed that define what a token is and how its contractual behavior works. ”- Ron Resnick, President of the InterWork Alliance

Resnick also noted that the InterWork Alliance was founded to serve and advance the basic work as an organization. Through the innovative cooperation partners, the organization could contribute to developing a suitable approach for extensive market use.

The fact that the InterWork Alliance is taking on the field of tokens shouldn’t cause any surprise. After all, tokens enable the trading of objects that are otherwise not tradable. Such a tokenized asset does not have to be natively digital. Rather, illiquid assets such as real estate, antiques, works of art or rights can also be traded using tokens. Before tokens find their way into everyday business, market participants must define the symbolic value of a token. Only when this fundamental question has been answered can agreements and clauses for the trading of these assets be defined.

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Focus areas of the InterWork Alliance

According to Marley Gray, chief architect at Microsoft and chair of the InterWork Alliance, the development of standards sees a basis for the future.

“When our customers want to come together to solve problems in their sectors, they often want a neutral forum where they can develop collaborative frameworks and approaches that allow them to focus on business results rather than details of technology implementation. IWA will play a critical role in helping business leaders from different industries work together effectively. ”- Marley Gray, chair of the InterWork Alliance

In the course of a forum, Gray shows which real use cases from different industries benefit from tokenization. The main focus here is on promoting interoperability, as well as a broad introduction of the research results to the market.

Accordingly, the newly founded organization provides the framework for companies that rely on standardized token definitions and contracts, but are not interested in developing a platform. The members defined the following priority areas:

  1. Token taxonomy: providing a common language and developing uniform tools. Thus, several parties can agree on a general definition, the exchange of values or the use of values.
  2. InterWork framework: With this framework, multi-party contracts can be created, which correlate directly with the token standards. In this way, the communication protocols can be used without further adjustments to the technology used.
  3. Analysis framework: This framework enables companies to create multi-party contracts in compliance with data protection and use them for market-driven data reports.

Tokenization - digital assets on the rise

Conclusion: Rapid progress in the area of token standards can be expected

Tokenization is not just a trend that affects the entire blockchain industry. Established companies and industries are also affected, so that new standards are required. Above all, the development of new platforms with inconsistent tokens should be used for better adaptation.

Important companies such as Microsoft, SDX, IBM or Accenture help to make the entire project look sovereign. It remains to be seen whether suitable standards will develop in the long term. However, this is an advantage for end users and companies.

In my view, increased demand for tokens can be expected over the coming months and years. After all, more and more users are gaining access to tokens and thus completely new asset classes. InterWork could be an organization that significantly accelerates further development.

 

The InterWork Alliance contribution to global token ecosystem standards appeared on the blockchain world .