A race to tokenize the bitcoin cash (BCH) cryptocurrency has just been triggered. Developers can now earn a whopping £5 million by bringing this advanced functionality to the cryptocurrency ecosystem, which means we might soon see smart contracts implemented with BCH. Tokenization can bring everything from land deeds to ICO coins onto the BCH network.
Bitcoin Cash Tokenization
Coingeek, the cryptocurrency company led by the billionaire entrepreneur Calvin Ayre, has launched a bitcoin cash tokenization contest offering £5 million in prize money. This competition is meant to elevate BCH from a cryptocurrency to “the cornerstone of the globally distributed economy.”
The company published a paper which defines the requirements for winning the contest and scope of the challenge for interested participants. In the paper Coingeek explains it is taking this move now because bitcoin cash has already demonstrated that on-chain scaling is possible and can be used to support a broader range of transactions than just payments.
State of the Art Smart Tokens
Tokens can represent real world assets within a blockchain, allowing holders to make transactions based on them. They are typically executed with some form of smart contracts and can come in a variety of possible traits and functionalities, such as indivisibility, exclusivity in time and more as mentioned in cointrust.com.
The current state of the art for tokenization with regard to the Bitcoin-derived blockchain networks is best captured by the “coloured coins” concept, the company explains. Other cryptocurrencies that have been optimized for use with tokenization (like ethereum which is most used for ICOs), typically depend on smart contracts. However, Coingeek says that none of these solutions have yet created the optimal solution, with them all struggling with poor scalability, lack of documentation and controls, limited auditability, little transparency, and being prone to token loss.
The challenge for the content participants is to design a system that delivers a solution that permits token creation, issues tokens to users’ wallets, redeems tokens from users, and securely destroys tokens into the originating cryptocurrency at the end of that token’s life cycle.
Is tokenization going to be a game changer for bitcoin cash? Tell us what you think in the comments section below.
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