University of The Cumberlands Tokenization in Blockchain Comparative Essay
This week we explored the concept of Tokenization. Three important protocols discussed were Secure Multi-Party Computation (SMPC), Policy-Backed Token (PBT) and Open Asset Protocol (OAP). Compare and contrast these three protocols and explain which industries can benefit the most from each of these protocols.
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Ask an interesting, thoughtful question pertaining to the topic
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Discussion:
Tokenization is the procedure to converting user's confidential information into customized string characters and it is known as tokenization and it is important to have tokenization to secure the data, for example, users account number, social security number are converted into string characters to secure the data from security breaches or cyberattacks. Tokenization methods can map 0the sensitive data so that it will be safe and secure for the organization.
Secure Multi-Party Computation (SMPC)
The cryptographic methods can permit distributed parties with distributed functionalities without providing the input and output files. In this process, there is no individual parties are having the facilities and abilities to view other party’s data (Dietrich et al., 2015). Multi-party protocols produce the quality of output, effective security across the organization so it will be good to install in every organization where it required to have high accuracy and better precision in the process.
Policy-Backed Token (PBT)
Policy baked tokens are depending on the blockchain method and when data stored in blocks it will not disclose to others and it consists of effective security models. PBT can allow users to restrict the data and assets are converted into digital assets. PBT is one of the major considerations in bitcoin technology and it will increase security and safety.
Open Asset Protocol (OAP)
In Blockchain technology there are different security token systems and utility token systems to increase the data security. OAP utilization will transform the virtual fields or objects into asset-backed tokens on different technologies such as blockchain technology. The multi-party computation process is one of the security models in OAP and it will be integrated with blockchain technology (Isaacs, 2017). Most of the Airline industries, aviation technologies, insurance companies, and airline passenger insurances are the key organizations to implement OAP for better security and safety.
References
Dietrich, D., Heller, B., & Yang, B. (2015). Data science & big data analytics: Discovering, analyzing, visualizing and presenting data. Indianapolis, IN: Wiley.
Isaacs, J. (2017). Block chain: The beginners guide to block chain technology. Place of publication not identified: CreateSpace Independent Publishing Platform.
discussion
The concept of Tokenization can be described as the sending of sensitive data through a batch file or an API call to a provider of tokenization, who then replaces that data with non-sensitive placeholders known as tokens. It can be used to desensitize and secure data by using an unrelated value of the same format and length to replace the original data. Through the week the following three important protocols have been discussed, these are; Open Asset Protocol (OAP). Policy-Backed Token (PBT) and Secure Multi-Party Computation (SMPC).
Open Asset Protocol (OAP), it is a simple tool that is powerful enough to be utilized for the blockchain technology. It allows transfer and issuance of user-created Assets. The OAP protocol has four Protocols which are OAP501, OAP502, OAP701 and OAP702. These protocols are necessary to be used by smart contracts so that tokens can be allowed to be managed and traded.
Policy Backed Token (PBT), this is identified as tokenized instance of the OAP token, mostly it is used in the insurance industry. Also the PBT have similar token protocol as the OAP, which are PBT501, PBT502, PBT701 and PBT702. A good example is the “E-life Token” which is a good application of the PBT701 token protocol that spells out insurance combination on aviation risks (Li et al. 2019). Such tokens are immutable which help the insurant on the block chain help the insurers make decisions.
Secure Multi-Party Computation (SMPC), this kind of token protocol is mainly applied in the data opening scheme with privacy-preserving property. SMPC is able to perform each Party’s privacy-preserving computation and reach the result in an efficient manner. In the case whereby various banks can use the technology to generate the credit ceiling for offering loans. Therefore preferred over the OAP as it is widely applied data opening scheme with privacy-preserving properties (Li et al. 2019).
References
Li, X., Wu, X., Pei, X., & Yao, Z. (2019, March). Tokenization: open asset protocol on blockchain. In 2019 IEEE 2nd International Conference on Information and Computer Technologies (ICICT) (pp. 204-209). IEEE.