Course: Data Science & Big Data Analytics This week we explored the concept of Tokenization. Three important protocols discussed were Secure Multi-Party Computation (SMPC), Policy-Backed Token
Substantive replies for below posts: Post 1: Karthik Week 13 discussion COLLAPSE Top of Form The first protocol of tokenization is secure multi-party computation.  It involves different subfields meant for cryptography and the methods for the parties known for computation functions (Mazzei et al., 2020). It can also be termed as cryptographic protocol, which evenly distributes the computation across different parties where singles parties cannot access the data meant for the party, thus enhancing privacy. This privacy will enable the party to interact with the computing join function, which could offer private input to prevent information from being revealed. The other protocol is Policy Baked token. This protocol is majorly utilized during the implementation of OAP in the insurance industry.  It can also be used in airline travel insurance.  The other protocol is the open asset Protocol (EMC Education Service, 2015). This protocol is considered to be simpler as compared to other mentioned protocols. It is also considered to be the most powerful protocol which has been established with regards to the bitcoin blockchain. This protocol is significant since it allows issuance and the transfer of the assets created by the user (Mazzei et al., 2020).  This protocol has evolved from the concept of colored coins. Regarding tokenization, one can opt for; open asset protocol due to its power and simplicity.  This protocol can also be utilized in; blockchain. It can be used in security and utility tokens to attain asset tokenization.   Reference EMC Education Service (Eds). (2015) Data Science and Big Data Analytics: Discovering, Analyzing, Visualizing, and Presenting Data, Indianapolis, IN John Wiley & Sons, Inc Mazzei, D., Bald, G., Antoni, G., Montalcini, G., Pitasi, A., Ricci, L., & Rizzello, L. (2020). A Blockchain Tokenizer for Industrial IOT trustless applications. Future Generation Computer Systems, 105, 432-445. Post 2: 1 day ago Venkat Week 13 Discussion COLLAPSE Top of Form Tokenization Protocols Secure multiparty computation (MPC / SMPC) is a cryptographic protocol that distributes computation across multiple parties while ensuring that no single party sees the data of the other parties. Secure multiparty computation protocols can allow data scientists and analysts to compute distributed data in a compliant, secure, and private manner without ever exposing or moving it. The use of policy-backed tokens, based on the tokenization approach used in permissioned blockchain, provides a comprehensive set of privacy protection measures. The Open Assets Protocol is a straightforward and effective protocol built on top of the Bitcoin Blockchain. It enables the creation and transfer of user-created assets (Ross et al., 2019). The Open Assets Protocol is an evolution of the colored coin concept. Furthermore, Open Assets is one of several protocols for creating and exchanging assets on the bitcoin blockchain. The financial sector is one of the many industries that has benefited greatly from tokenization. It has evolved in recent years to the point that consumers are looking for new ways to protect their finances (Ross et al., 2019). As a result, the industry has developed a few guidelines for conducting business and handling cash. Secure Multi-Computation is a cryptographic subfield that enables multiple users to compute while retaining their privacy. The Open Asset Protocol is one of the tokens used in bitcoin currency to translate and issue currency. In the blockchain industry, policy-backed tokens are tokens that reflect real properties. Having a token allows one to execute such transactions using blockchain tools. Tokens in the blockchain industry include Open Asset Protocol and Policy-Backed Token. Though Open Asset Protocol requires knowledge of how to convert the virtual currency to real assets, Policy-Backed Token is most commonly used in the aviation industry. In the banking/financial sector, all three protocols, and tokens are used to improve the ease of moving funds and money liquidity (Smith, 2019). References Ross, O., Jensen, J., & Asheim, T. (2019). Assets under Tokenization. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3488344 Smith, S. S. (2019). Blockchain, Tokenization, and implications for financial services practitioners. International Journal of Accounting and Financial Reporting, 9(1), 1. https://doi.org/10.5296/ijafr.v9i1.14164 Bottom of Form Bottom of Form