ITSA, A New International Token Standard

The ITSA (International Token Standardization Association) is a listed organization established in Germany whose purpose is to create a standardized identifier for cryptotoken.

What are tokens for?

Primary, people can use tokens as a method of payment. On the other hand, they assist the development of the Blockchain (eg gas at Ethereum). Tokens are symbols that express a particular underlying asset, such as a currency like a dollar or a specific portion of a valuable metal like gold. Tokens can also be a digital asset, such as CryptoKittis, Bitcoin, etc. They are exceptional for raising capital in ICOs or STOs because they can be quickly built on the blockchain and are available to anyone.

The problem

Cryptographic tokens operating on DLT policies will soon develop an essential part of several significant economic areas such as financial markets, data, and media, production and commerce. As such they are running to give service and value in many complex patterns to market and community as a whole. Furthermore, cryptographic tokens are also on the brink of enacting a distinguished institutional asset group. Yet, the contemporary token exchanges still require a substantial and robust structure for the classification, analysis, and interpretation of various token varieties, which points to financial, technological as well as administrative ambiguity and a shortage of clarity for all actors associated.

The solution

The ITSA utilizes three methods to assure clarity and to alleviate the disorder.

Identification: In this method, the token is captured and gets a 9 digit number (ITIN), with which it can be uniquely recognized, similar to the ISIN in stocks.

Classification: The token is examined by using an ITC International Token Classification framework. It is a structure for analyzing cryptographic tokens according to several distinct dimensions. It is already implemented to the top 800+ tokens and will be continuously modernized and stretched through the analysis of more tokens as well as the extension of further dimensions and levels.

Analysis: It uses an International Token Database (TOKENBASE) framework. It gives comprehensive time-series data for the study of the top 800+ cryptographic tokens already classified through an ITIN and named in the ITC. Like the ITC, it is continuously increased and modernized. The dataset comprises amongst others daily prices, trading volumes or data on the business capitalization of each token and is based on data from more than 30 exchanges. Moreover, it holds information on social media appearances of each token as well as its code repositories.

Why is a token standard essential?

A big problem in the crypto market is the different patterns and arrangements. The problem is obscured by constant name variations and sometimes misleading announcements by some projects. The International Token Identification Number (ITIN) supports distinguish projects consistently related with ISIN for stocks.

Disclaimer: This information should not be interpreted as an endorsement of any cryptocurrency. It is not a recommendation to trade. The crypto market is full of surprises and overhyped assets. Do your research before buying anything. Do not invest more than you can afford to lose.

Follow us on Twitter, Facebook, Steemit, and join our Telegram channel for the latest blockchain and cryptocurrency news.