- Tokenization is converting an asset or the ownership rights of an asset to a unique unit.
- The Fraud Intelligence Blockchain is built using Hyperledger Iroha, a DLT that supports advanced features while providing the highest level of security.
- Through tokenization, the information provided is stored securely on a Hyperledger Iroha-based distributed ledger, while the tokens awarded for contributions are also used to query the information available.
An advantage of Blockchain technology is being able to indicate ownership of an asset through a token. This article will define tokenization and its relation to the Fraud Intelligence Blockchain. We will also highlight the difference between a cryptocurrency and a utility token, and finally, we will describe the underlying importance that tokens have in a cooperative information-sharing ecosystem.What is Tokenization?
There are public and private blockchains. There are many differences between both, including the types of nodes being run and the ability to program and manage user roles and authorisations to access nodes in private blockchains, while public blockchains are available for any entity to verify the transactions ( through nodes); however, the entities verifying public blockchain transactions are spread across the world and (ideally) have no relation with each other or with the network; private blockchains have nodes verifying transactions within a specific organisation or consortium. This is also known as Distributed Ledger Technology (DLT) as several entities have a copy of the ledger, which can be updated by one entity but has to be verified by all other entities on the network.
The Fraud Intelligence Blockchain is built using Hyperledger Iroha, a DLT that supports advanced features while providing the highest level of security.
In the blockchain space, tokenization is converting an asset or the ownership rights of an asset to a unique unit. The blockchain contains essential information, such as when a unit was "minted" (created), and the token contains information about who the unit belongs to. Tokens are a representation or substitute for real-world information or assets[1
In the case of the Fraud Intelligence Blockchain, by being on a database that only allows for addition, the information shared by the contributing member is recorded, and a token is emitted. This token represents a contribution; at the same time, contributors are granted loyalty points that can be used to query the blockchain for contributions from others. It cannot be freely available to anyone to maintain the high value and quality of the data supplied by members. In this case, using tokens helps secure the network and the information contained within as it avoids access from entities without permission.
Tokens will be connected to the records of who contributes fraud reports and who queries the network, thus ensuring consistency and safety for all the participants. What Kind of a Token Does the Blockchain Use?
There are four main types of blockchain tokens, fungible (crypto assets such as BTC, ETH, XOR), non-fungible (NFT), governance tokens (used to vote in DAOs, etc), and utility tokens. The FIL token is the latter.
As mentioned in the previous section, the token's utility will be access to the fraud intelligence available on the Fraud Intelligence Blockchain DLT. The other utility of the token is to reward contributions of fraud intelligence from members.
This token will not have economic value, so it will not be traded on markets such as Binance or Polkaswap.io, nor will it have a price or tokenomics. The value attributed to this token is the information contained within the Fraud Intelligence Blockchain. This means that no risk is normally associated with blockchain-based tokens, such as financial losses or regulatory issues. Ultimately, this is a distributed ledger application to secure data. A Cooperative Information Sharing Ecosystem
After outlining the technicalities of the FIL token, it is essential to outline its main objectives, which is to foster a cooperative information-sharing ecosystem. Using innovative technology such as Hyperledger Iroha, FIL aims to provide high-quality information to combat an expensive and constant issue such as fraud. By sharing information between key players in the telecommunications industry, FIL hopes to support the fight against this issue that affects all areas of the industry.
Thanks to tokenization, members will be assured that the information contained within is not publicly available, which would be detrimental to the cause, as fraudsters would evolve and change their M.O. and thus cost the industry more resources to catch up. The information is also high quality, as the organisation vets contributions, and tokens are awarded to valuable contributions. Likewise, tokens are necessary to access this information, resulting in a cooperative information-sharing ecosystem of high value. To Conclude
The entire FIL team is working hard to deliver a network that harnesses innovative technologies to provide valuable intelligence to help combat an issue that affects the entire telecommunications industry.
Through tokenization, the information provided is stored securely on a Hyperledger Iroha-based distributed ledger, while the tokens awarded for contributions are also used to query the information available. Teams will benefit from high-quality insights provided by key industry players and experts that will be mutually beneficial.
On Tokenization, Anthony Sani, Co-Founder and CEO of Orillion mentions;