The inherent value of the BSV blockchain is not the blockchain itself but rather how enterprises can use it as a utility, says Valentine Labarthe, Head of Commercial and Strategy at nChain.
nChain is a global leader in blockchain research and development and aims to provide access to tamper-proof data solutions. Its solutions can automate data verification, decrease costs, mitigate risks, increase efficiency, and open new revenue opportunities.
Speaking at the recent Blockchain in business – new opportunities conference in Poland, Labarthe said nChain has been working with the Polish Blockchain Association to ask how web3 could generate new brand revenues and sustain long-term customer engagement.
Web3 offers digital assets and tokenisation, as well as the ability to transact these digital assets fractionally in a peer-to-peer exchange. It also promotes inclusion and accessibility as governance is decentralised, said Labarthe.
Labarthe touched on three specific ways that businesses can unpack real-world value backed by digital assets:
- Services tokenisation;
- Central Bank Digital Currencies (CBDCs) and digital cash.
Tokenised assets generate customer engagement
Labarthe highlighted one of the solutions developed by nChain – e-certificates which are built on the BSV blockchain. This is most commonly used to provide a certificate of authenticity with provenance and origin and is typically either an NFT or a digital-twin.
‘In terms of revenues for you as a brand, you increase your customer protection, optimise insurance by having assets that are certified and backed on a public ledger, and can guarantee against forgeries – all of which protect your interests as a brand.’
Other potential revenue-generating features offered by tokenisation include:
- Online content creators get rewards for future purchases, which also contributes to further brand visibility;
- Brands can apply royalties on further transactions with automated contracts;
- Access to the secondhand market.
Tokenise your services for greater flexibility and loyalty
Another way that enterprises can potentially generate revenue is through the tokenisation of their services, said Labarthe.
‘Imagine you are a streaming platform that provides online content. There is a way to tokenise and replace monthly subscriptions where you tokenise fiat currency into stable tokens and those can be used on your platform. This is only possible if you have a platform which guarantees nano payments with extremely low transaction fees and of course transaction fees.’
Labarthe said this backbone also allows for ‘nano rewards’ for customers, including the ability to monetise their data which they are handing over to companies online.
Other potential revenue-generating features offered by tokenising services include:
- Users can deplete their tokens to pay for only what they have consumed, instead of a flat subscription fee;
- Online continent creators and community members can get nano rewards for engagement;
- This type of platform allows for decentralised ownership where every creator that adds value gets rewarded;
- Users can be guaranteed data protection, as data is self-sovereign and not available for resale.
- Getting users to buy into tokens allows brands to generate customer retention and reinforce customer loyalty.
CBDCs and digital cash
One of the most discussed forms of digital assets is to replace a currency. This should be done by central banks which should offer a pure form of digital cash, said Labarthe.
She added that the introduction of a digital currency on the BSV blockchain allows private peer-to-peer transactions without the need for banks or credit cards. Governments can also be assured that the transactions are safe and stable, with the blockchain acting as an immutable source in conjunction with existing monetary systems.
‘In some countries, you have 60% of the population has access to bank accounts so you need to give access to the digital economy to those who are unbanked.’
‘One of the big use cases we work with at nChain is a Central Bank Digital Cash, which works through a hybrid system. This includes a digital currency that is programmable and works alongside existing fiat currency.’
Labarthe added that users who don’t have a bank account can get a wallet when they trade in their physical cash and then this can be used to transact with merchants. This also does not require an internet connection or a smartphone, she said.
Other potential benefits of a digital currency include:
- Promoting financial inclusion – especially for women and children;
- Helping to reduce current account deficits;
- Additional privacy for individuals;
- Promoting a more resilient economy;
- Reduce dependence on imports;
- Additional traceability and transparency within the monetary system.
Use cases and long-term benefits of blockchain tokens
Labarthe also highlighted some of the specific use cases in moving to a digital asset-based system, including rewarding positive behaviour by offering nano rewards for good deeds such as recycling.
She also touched on several long-term benefits of blockchain tokens, including:
- Integration into video games;
- Limiting data breaches;
- Reducing counterfeit schemes and other online scams;
- Reducing the cost of onboarding and KYC procedures;
- The ability to offer immutable e-credentials;
- E-certificates to guarantee provenance and traceability.