- Company is actively pursuing a two-pronged strategy to roll out products in the decentralized finance (“DeFi”) space and more traditional enterprise software solutions which leverage blockchain capabilities.
- DeFi is a new area of blockchain technology that uses smart contracts to perform operations that would typically be performed by centralized entities or a series of intermediaries.
- BCF has been actively evaluating blockchain-enabled product opportunities in several industry verticals, including remittances, loyalty applications and digital identities.
TORONTO, March 03, 2021 — Blockchain Foundry Inc. (“BCF” or the “Company”) (CSE:BCFN), a leading North American blockchain development firm, is pleased to provide an update on its product strategy, development initiatives and new customer acquisitions.
Product Strategy
The Company is actively pursuing a two-pronged strategy to roll out products in the decentralized finance (“DeFi”) space and more traditional enterprise software solutions which leverage blockchain capabilities.
Decentralized Finance (DeFi) Initiatives
DeFi is a new area of blockchain technology that uses smart contracts to perform operations that would typically be performed by centralized entities or a series of intermediaries. Some examples of DeFi applications include:
- Non-fungible tokens (“NFTs”), representing unique items such as works of art, digital collectibles or in-game items;
- Automatic trading, market making and liquidity pools for digital assets;
- Insurance contracts triggered automatically by pre-specified events and conditions; and
- Stablecoins which are pegged to fiat currencies, precious metals or other traditional asset classes.
Most DeFi applications are built on the Ethereum blockchain. As discussed in previous Company disclosure, BCF has been a major contributor to the open source Syscoin blockchain protocol, which has cost, speed, security and scalability advantages over many public blockchains, including Ethereum.
BCF is assisting with the development efforts for the next release of Syscoin, version 4.2, which is expected to be released by April 30, 2021. Syscoin 4.2 will feature support for NFTs, a commonly requested feature by BCF clients, and will lay the groundwork for future Syscoin innovations, including Syscoin’s Network-Enhanced Virtual Machine (“NEVM”). NEVM is an improved version of Ethereum’s Virtual Machine (“EVM”) and serves as the backbone for smart-contract execution within the Syscoin ecosystem. NEVM will provide better security, speed and scalability through the use of zero-knowledge proofs (“ZKPs”) 1 .
Key to the Company’s strategy is enhancing the Syscoin protocol in ways which allow BCF to operate decentralized finance applications in much more efficient ways than are currently possible on today’s public blockchains. Over the next 3-6 months, the Company intends to release an initial DeFi solution to be developed on Ethereum or Binance Smart Chain. This initial DeFi implementation is expected to have lower fees than competing products due to the Company’s unique expertise in ZKPs in combination with Layer 1 and 2 systems which will be adapted to this solution. Competing DeFi products, most notably products like Uniswap, Balancer, Kyberswap and 1Inch, charge a fee based on the transactional volume processed by the platform. Uniswap charges a fee of 0.3% and frequently handles more than $1 billion in daily trading volume and processes over 100,000 daily transactions 2 . On the current Ethereum network, 100,000 transactions would cost approximately $300K compared with less than $1 for the same number of transactions on the Syscoin network 3 .
Many DeFi applications are difficult to use, prone to scams and fraud and generally do not appeal to mainstream users. BCF intends to leverage its expertise in developing consumer and enterprise solutions for clients to distinguish its offering from others on the market and appeal to a mainstream audience.
BCF’s initial DeFi release will be deployed, tested and improved upon throughout 2021 with the intention of releasing a more scalable, faster and cheaper implementation on Syscoin as soon as the underlying Syscoin architecture is ready for deployment, currently estimated for Q4 2021 or Q1 2022.
Enterprise Development Initiatives
BCF has been actively evaluating blockchain-enabled product opportunities in several industry verticals, including remittances, loyalty applications and digital identities. For each use case, the Company has been engaging with potential industry partners who would be the initial users of any products developed by BCF and who would assist the Company in its roll out of these products to enterprise users. The Company continues to evaluate enterprise use cases and partnerships and will provide updates to the market as these initiatives progress.
New Customer Acquisition
In addition to its product development strategy, the Company continues to provide consulting and development services to projects where it believes it has a strong technological advantage and can add value for its clients.
BCF has recently engaged in two solution design projects, one for a carbon exchange product using a digital asset to represent sequestered carbon, and another project building an NFT platform to track the popularity of music, movies and TV shows and produce a corresponding payout. Both of these projects represent innovative use cases for blockchain technology and BCF looks forward to completing these solution designs and beginning work on full scale design and implementation proposals for these clients.
Tags: Bitcoin, Bitfarms Ltd., blockchain, CSE, ether, Galaxy Digital Holdings Ltd., GDPR, Hive Blockchain Technologies Ltd., Hut 8 Mining Corp.