TokenWARP® is CoreLedger's patent-pending technological solution to increase liquidity in a token economy. It's an elegant technological solution that enables the ultimate evolution of the Barter Economy for a globalized, digital world.
In a token economy there is always the need to convert values. Tokens don’t leave the digital space, so a conversion means exchanging one token for another, whatever that token may represent. A token resembles an “I owe you” in its simplest form – a placeholder for the real good. It can be asset or currency backed or even just exist as a promise.
That’s why participants in a Token Economy soon face an obvious problem. Even if assets have the same face value (in case the token is a currency backed one), they are actually not the same. There is not simply “THE” USD, instead there are half a dozen USD-backed tokens.
Because of this, when someone wants to buy an asset, eg. tokenized commodities, they have to pay in the currency specified by the seller. If there are different tokens with the same face value (currency), they usually have different issuers so they behave like totally different assets, despite sharing a face value.
Until now, this problem could only be solved “off-chain” by first converting the red dollar token into the green dollar token, and then using it in a subsequent transaction to purchase the commodity token.
But if tokens can be traded atomically (which means, that I give you the red token and you give me the green token, and possibility of cheating is mitigated because the transfers happen simultaneously), and the same is true of the commodity for green token transfer, then the conversions can be instantaneously linked together into a single on-chain transaction.
This simultaneous process is called an atomic swap; anywhere from two to hundreds of consecutive transactions are combined into a single action, making virtually any token tradable for any other.
Working in the background, TokenWARP® is not immediately visible to the user. If trading and value conversion is enabled in the end-user product of the TEOS suite, then it basically allows values to be routed in the same way that the internet routes data today, regardless of any restrictions, except for the unbendable rules integrated into the digital assets themselves by their issuers.