The working group aims to establish a standardized method to represent a token across all blockchain networks in order to eliminate transactional friction and reduce processing costs; enable automation and provenance tracking; and allow interoperability of transactions on a global scale.
A token is a digital representation of an asset which could be debt, equity, cash or a physical asset (i.e. a vehicle or a piece of artwork). The blockchain is a digital distributed ledger that records and facilitates transactions. Tokens, which are representational units of an asset, provide the mapping of an account to an asset and maintain a record of ownership. They are used on a blockchain to assign ownership and rights of underlying assets that are transacted through smart contracts (digital contractual agreements) on the blockchain.
The working group will establish goals and action steps by early 2017, and is requesting participation from individuals representing technology, finance, and accounting to provide their expertise in developing tokenization standards that can be used worldwide, for all asset classes.
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