What is the Token Economy Operating System (TEOS) and How Does It Work?
When Bitcoin first launched, it solved a problem as old as the internet itself. Internet connectivity enabled us to share digital assets like photos, documents, or videos but we couldn’t ascribe any value to them. On the internet, these assets are easily duplicated by anyone with access. The idea of digitizing cash suffered from the same challenge, known as the “double-spend” problem. Thus, we still needed an intermediary such as a bank or a broker to exchange any kind of value.
When Satoshi Nakamoto unleashed Bitcoin, he solved the double-spend problem. For the first time, a digital asset could be traded between individuals without the need for a bank or other intermediary. Over the last decade, developers have continued to refine the concept of “the internet of value,” introducing innovations such as smart contracts, stablecoins, and asset-backed tokens.
Now, any person or enterprise can get involved in cryptocurrencies or establish a token economy. People are using cryptocurrencies for payments and investments. Companies create tokens for crowdfunding, to digitize assets, or as a utility to access their products and services.
However, accessing blockchain-based infrastructure is still a barrier for many organizations. There’s a perception that you need to understand the underlying technology, employ a team of developers, and build your solution from scratch.
This is no longer the case. For any business wanting to leverage the benefits of blockchain and implement a token, there’s a solution in the form of CoreLedger’s Token Economy Operating System (TEOS).
It’s a blockchain-as-a-service solution that enables any organization to benefit from blockchain. It doesn’t require any in-depth technical learning to use, and businesses can simply plug in, quickly and conveniently.
In a previous post, we outlined some of the use cases of TEOS illustrated by our real-world partners who are already deploying the service. Here, we explain the various benefits and features of TEOS for anyone considering implementing blockchain.
TEOS empowers anyone to put real-world assets and services on the blockchain in the form of digital tokens. Tokens can be used for almost any purpose. This may be tokenizing a physical asset such as real estate, a piece of fine art, a football club, a racehorse, a tractor — anything of value. Tokens can represent full or fractional ownership of the asset with all the same rights and obligations as physical ownership.
Tokens could enable peer-to-peer transactions, for example, in a marketplace environment. They could also provide access to application services.
Using tokenization for transactions can speed up settlement times and bring efficiencies by eliminating the need for intermediaries to serve as witnesses or brokers. Tokenized assets can help with fundraising and bring liquidity to illiquid markets by reducing barriers to entry for new market participants.
CoreLedger’s TEOS clients have access to a proprietary algorithm called WARP, which is a multi-party asset search tool. In any single application built on TEOS, the WARP algorithm will enable peer-to-peer transactions.
What’s more, on request, the algorithm can also perform a search across the universal marketplace, comprising all digital assets issued through TEOS. Upon finding suitable trade sequence options for the users, users can choose the best option and execute an atomic swap of the assets in the transaction.
In the current regulatory climate, compliance in token sales should be taken very seriously. When the initial coin offering (ICO) bubble inflated during 2017, it was due to the ease with which anyone could issue an Ethereum ERC-20 token and start selling it. Unsurprisingly, regulators across the globe began to apply securities laws to token sales.
Using TEOS means that you can program compliance requirements into the token itself. If you want to run a token sale that’s only open to a particular group of investors or the tokens are only subjected to jurisdictions, you can create the relevant rules for doing so and have them embedded into your token from the start.
Similarly, TEOS allows you to embed any governance or rights into the token itself without programming efforts . So, if a token confers particular voting rights, then these can be coded in from the outset. None of this requires technical know-how — it’s all done through a simple and intuitive user interface.
Traceability and Auditability
Because the token is on the blockchain, the blockchain itself handles the entire “paper trail” for the token. For example, if the token represents a physical asset, all the attributes of that asset are recorded securely and permanently on the blockchain. If the attributes change, the data can be updated with the new attributes without compromising the integrity of the older data.
Likewise, the ownership of the token can also be recorded on the blockchain. If it changes hands, the ownership log is available permanently. This level of data transparency means that the token can easily stand up to scrutiny, for example, by an auditor. Data on the blockchain cannot be deleted, manipulated, lost, or destroyed.
Ease of Access
TEOS users don’t need to learn a single line of code to access the platform’s infrastructure. It’s easily accessible through an API or our white label marketplace. All you need is an account, and you’ll be up and running within two days.
The TEOS infrastructure is blockchain-agnostic, meaning it doesn’t rely on any one blockchain. In the future, if a new blockchain emerges that overtakes Ethereum, TEOS is flexible enough to enable migration without having to rebuild everything from the ground up.
The TEOS infrastructure enables anyone, anywhere, to start realizing the benefits of blockchain and participating in the internet of value. If you’re interested in learning more about how it could benefit your business, then contact us for a discussion.
This article is brought to you by CoreLedger.
As a prominent blockchain infrastructure provider, CoreLedger is making blockchain technology simple for businesses to use. With CoreLedger’s offerings, clients can readily tokenize their offerings with fast-to-implement resources that will allow them to modernize their services. Thanks to our in-house developed software solutions and experienced blockchain specialists, CoreLedger is ready to help you make your next move with blockchain technology.