After many years of investment, experimentation and infrastructure improvements, the intersection of three market trends are paving the way for enterprise adoption of public distributed networks: tokenization, decentralized finance (DeFi) and business logic moving to layer 2.
In 2020, it became ever more apparent that these trends, in addition to hard lessons learned from attempted deployments of private networks, have caused enterprises to be open to the use of distributed ledger technology (DLT) in ways they simply were not in 2017.
In 2017, tokens were used almost exclusively as a way to raise capital for startups. The value proposition of tokenization was only beginning to be understood, with very little appreciation for the full range of use cases and types of tokens that could be created.
Fast forward to 2020, and groups like the Interwork Alliance have for understanding the definition and scope of the token concept, including use cases, taxonomy and terminology. Early use cases of DLT focused on its ability to synchronize a ledger across multiple parties, ensuring that all parties get the same information at the same time, and that each network participant has confidence all parties receive exactly the same information.