Enterprise Ethereum Alliance (EEA) has created a new system of reward tokens that has the backing of Microsoft and Intel. EEA unveiled this news via a statement on October 7. Per the statement, the new system is titled “trusted reward token”. It seeks to reward firms that participate actively in a group.
EEA is the group that sets standards for Ethereum-based blockchain apps in businesses. It comprises more than 450 members. These include, but not limited to Microsoft, JP Morgan Chase, Santander, and Intel.
Michael Reed, Intel’s blockchain program manager noted that there are three types of to motivate participation. These are a reward token, a reputation token, and a penalty token.
Reed added that,
It really can be applied to any consortium to incentivize teamwork. The example we are using is a software development consortium like EEA, where we are trying to motivate activities like editing and contributing to specifications, developing and adding code. Then, of course, you could apply penalties for negatives, such as lack of contribution, lack of review, missing deadlines and so on.
Incentivizing Firms with a Carrot and a Stick
The trusted reward token is similar to the ERC-20 standard in that the EEA has the power of attaching it to any unit of value. Marley Gray, Microsoft’s principal architect described the rewards process as grant contracts.
Explaining how the trusted reward token would work, Gray noted that motivating members of a group would need a carrot and a stick. As such, the system would factor in all the penalty tokens that participants have accumulated before allowing them to redeem rewards tokens.
One of the problems you have is people making large commitments but never following through. This is almost more damaging than not stepping up at all because it leads to long delays when people are thinking things are happening and they are not.
EEA’s Publication on Blockchain Uses Cases in Telecommunication
This news comes after EEA published the blockchain’s use cases in the telecoms space. The group unveiled this news on August 28, noting that the EEA Telecom Special Interest Group (SIG) was behind creating the document. According to EEA, the document is open to the public. It informs how the blockchain can help smoothen business transactions and internal processes in the telecoms space.
The document listed several use cases of the blockchain in the telecoms sector.
- Blockchain-based telecom call roaming user authentication
- Blockchain-based telecom call roaming reconciliation
- Data privacy and monetization
Do you think the active involvement of leading firms in the blockchain sector could act as a gateway for adopting the crypto sector as well? Let us know in the comments below.