The Token Taxonomy Initiative has released the Token Taxonomy Framework (TTF) V 1.0. The framework is designed to standardize tokenization including the issuance of securities. Users of the TTF can create a new type of token from a set of reusable, cross-industry components, including existing token definitions, creating a specification that includes all of the business ingredients for any implementation.
The need for TTF is an outcome of the numerous developments in the blockchain sector in a short period. Consequently, without standardization, the industry risks remaining highly fragmented and lightly utilized. While expectations are for the technology to evolve, a baseline standard can help establish better-defined protocols and can boost utilization more rapidly.
TTF a “platform neutral” project involves numerous recognized names including Accenture, Adhara, Banco Santander, Blockchain Research Institute, Clearmatics, ConsenSys, Digital Asset, Envision Blockchain, EY, Hedera Hashgraph, IBM, Intel, ioBuilders, Itau, J.P. Morgan, Komgo, Microsoft, R3, and Web3 Labs. In addition, the framework is supported by taxonomy documentation and a set of tools that facilitate token definition workshops that contribute to a shared GitHub repository.
A template approach and the availability of token workshop facilitation tools make exploration and innovation simple. By using rich metadata, the framework facilitates automation-like code generation, verification, and certification that is extremely valuable to developers. Using the GitHub repository, teams can map business requirements to specific blockchain code or solution implementations. This will facilitate discovery and use in ways that help to increase time to market and expand the user base.
In practice, the framework seeks to enable businesses to develop a clear definition and scope of the token concept, including use cases, taxonomy, and terminology, and a specification neutral to the underlying technology – whether or not the token is hosted on a blockchain platform. Furthermore, the framework enables businesses and developers to create new types of tokens from a set of reusable, cross-industry components – all without requiring an understanding of industry jargon or coding.
Consequently, business people can describe a token that completely services their business requirements, while developers can see the types of backend requirements needed to standardize the token across different blockchain networks. The resulting token specification is a readable document that anyone can understand and download for documentation or education.
Though there are numerous and diverse implementations and taxonomies for tokens, the industry lacked a venue for all participants to work together to describe how tokens can eventually interoperate across multiple and disparate systems. Therefore, the TTI’s framework will be central to ensuring that the next wave of financial innovation will start with cross-platform standards in mind.
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