Tokenization: Open Asset Protocol on Blockchain

Token represents the right to do some operations in software. In blockchain, there are two types of tokens: utility token and security token. They endow the items of token more value in blockchain world. In order to achieve asset tokenization, we propose a new kind of token in this paper, the asset-backed token, which is used for the proposed blockchain based Open Asset Protocol (OAP). Using OAP, we show to how to convert both of the real and virtual objects to asset-backed tokens on blockchain. Then we discussed a new method for data utilization and privacy-preserving based on OAP and compare with our previous scheme, the Secure Multi-Party Computation (SMPC). Additionally, we introduce the Policy-Backed Token(PBT), which is an instance implementing OAP in insurance industry. We have applied PBT in the airline travel insurance product E-life of an insurance company.