• Crytocurrency News - All the latest Cryptocurrency news from across the web

Enterprise Ethereum Alliance launches Token to Reward Consortium Efforts

Enterprise Ethereum Alliance (EEA), a consortium of companies that regulate and create standards for companies to create applications on the Ethereum blockchain, has created a reward system based on Ethereum tokens, to incentivize companies that participate in the Ethereum blockchain. The new system of reward token has been backed by companies like Microsoft and Intel.

The new system of reward tokens was showcased at Devcon 5, the annual event for Ethereum developers which was held in Osaka Japan. The reward tokens are designed to award the active participants in the consortium.

Michael Reed who heads the blockchain program at Intel’s software and solution division, in a statement to CoinDesk, explained that there would be three kinds of tokens for the participants, reward tokens, penalty tokens, and reputation tokens each having their own uses. He said:

It really can be applied to any consortium to incentivize teamwork. The example we are using is a software development consortium like EEA, where we are trying to motivate activities like editing and contributing to specifications, developing and adding code. Then, of course, you could apply penalties for negatives, such as lack of contribution, lack of review, missing deadlines and so on.

READ ALSO: Ripple CEO Doesn’t Expect Libra to Launch Anytime Before 2023

The idea of tokens to incentives companies to work on Ethereum blockchain is not a new idea, the Ethereum community has been debating about such steps for a long time. The initiative is based on the Token Taxonomy Initiative which was announced earlier this year, however, the first real use case emerged last month when Microsoft announced their tokenized platform.

Microsoft has developed a framework of tokenizing value across many blockchain networks, not limited by Ethereum’s blockchain. TTI is a framework that let companies develop their own tokens, they can decide the features of the token, whether the token can be transferable or not transferable and which Hyperledger the token is based on.

The director of EEA Ron Resnick while explaining the Toke Taxonomy Initiative said that this is a composite framework that can be accessed by techies and nontechies alike. There would also be a workshop to introduce the framework to the rest of the world and a GitHub repository through which finding data sets and connecting it to token implementation on different blockchain networks will be facilitated. He added:

We are doing this for the greater common good. Standardizing tokens across all networks could hold the key to one of the greatest economic opportunities in modern history.

READ ALSO: While on the Run, John McAfee Launches Non-Custodial DEX in Beta

The idea of the TTI came from Marley Gary, the Principal Software Architect at Microsoft. Who said that the inspiration came from his involvement in Microsoft Azure’s blockchain initiative and his dealings with different industry consortium who were trying to figure out how to tokenize different commodities? Gary in a statement talked about what the main idea is:

The idea is to use a workshop with business people to describe a token completely that services their business requirements. That token itself is composed of reusable components so another group can use those same components to define a slightly different token without redefining all the things that the initial group did – so it creates this framework.

READ ALSO: Honk Kong Issues New Regulations for Crypto based Investment Funds

Most read articles on Crytocurrency News