On Standardized Service Interfaces for the Interoperability of Tokenized Asset Networks

Abstract

Many businesses seeking new capabilities that blockchains may offer are deterred from fully embracing the technology due to fears of the classic ”vendor lock-in” and platform-capture into one specific blockchain. From an asset-centric perspective, most business applications seek certain desirable functional guarantees with regard to the state of the tokenized asset on the blockchain. These new capabilities must be accessible through standardized service interfaces. The emerging tokenized asset networks based on decentralized ledger technology must integrate seamlessly into existing financial IT systems through similar standard interfaces. As such, if blockchains are to be a foundational technology in the future Web3 Internet of Value, then several classes and types of standardized APIs must be specified, published, and widely deployed by the nascent tokenized asset industry. These standard APIs must provide business applications with a single uniform interface to the many and varied blockchains today, thereby reducing business IT costs and preventing platform-capture.