Token's availability, status and use are affected by context

TokenLayer allows Token Actions to be defined and performed based on the context. Depending on the situation an available Action changes or a new Action becomes available.

For an example, take American Express Travel Credit Token. Instead of launching a web application called American Express Travel, where the user is able to choose a hotel and spend such travel credit, a Token Layer allows the user to go to book a hotel in any hotel booking website that supports the use of such a token, and pay with the credit at the checkout. Only if the user has enough Credit Token the option to checkout with them becomes available.

Similarly, though a Token can be associated with a specific time, location or environment. For example, an airline passenger is able to swipe open the turnstile at the airport check-in without having to open his Airline mobile app first, as the use of such a token (boarding pass) is associated with the right context. A TokenLayer implementation like TokenScript allows the tokens to be associated with context by declaration or authorisation, instead of having each token running a process on user's device.

Another context can be the presence of multiple token. Let's say you have a DAI token to pay at the checkout, but you also have a subscription token for the local fishermen's club. Since the fishermen's club has an agreement with a fishing shop, you can collect points when you checkout while having the club membership token in your wallet. You might also need a boat insurance token to turn on the engine of the club's fishing boat with your club membership token.

We make tokens smart

Smart Token Labs is the creator of TokenScript and AlphaWallet two open source solutions for a tokenized future.