Microsoft, IBM, Nasdaq and a number of other technology and financial organizations from around the world recently formed the InterWork Alliance, or IWA. The alliance, which currently consists of 36 members, serves as a non-profit organization dedicated to creating global standards needed to drive tokenized ecosystems.
Microsoft’s principal architect and the IWA chairman, Marley Gray, told Cointelegraph that any expression of value in any vertical or use case can be rendered as a token. Cryptocurrencies, for example, are one of the many types of tokens that can be exchanged across multiple parties, creating a tokenized ecosystem.
Yet as tokenized environments expand outside of the cryptocurrency realm and into the business world, a disconnect between understanding businesses requirements and technology needs has emerged. As a result, the adoption of tokenization is being hampered. Gray elaborated on this, saying:
“In the future, users will be able to buy, sell, and exchange everything using tokens from climate change-based carbon accounting and markets, to plane tickets, to real estate. Today that future can’t happen.”
According to Gray, the challenge facing tokenization adoption relates to the notion that organizations want to produce business processes that can be quickly passed off to coders for implementation on platforms leveraged by their customers. However, it’s problematic for companies to focus on solving technology challenges before recognizing business requirements, Gray explained:
“Without a standardized set of common terms, definitions and business level specifications, developers have to interpret inconsistent business requirements and translate them to write code for every blockchain platform and each token standard for a token-based business use case to work. This complexity makes wide-scale adoption difficult.”
In order to solve this challenge, the IWA will seek to examine ways to simplify tokenization, providing knowledge on how…