From Smart Tokens to Smart Layer in 6 short years
When Weiwu Zhang, James Brown, and I co-founded Smart Token Labs in 2017 with the belief that tokenization would lead to a fully integrated web, we couldn’t have imagined it would take six years for our vision to approach reality.
Today’s announcement of Smart Layer as a decentralized services network to bring tokenization to web services at scale is the culmination of a long but rewarding journey based on a vision that hasn’t changed in any way since 2017.
Our vision of the integrated web
We have always believed that tokenisation leads to an integrated web which solves real-world problems around web services integration and delivers a step change in business efficiency and user experience. Smart Tokens, tokens with a programmable interface, would function as the integration points of the integrated web, bringing the magic of composability to web services.
Today we see many indicators that the market is ready for tokenization based on tokens as APIs, not just assets. In the past 18 months, our Smart Token technology has been used at scale to create better experiences in loyalty and membership.
Advanced tokenization in real-world use cases
At events all around the world, 3rd party service providers are effortlessly integrating web services with smart token loyalty passes issued by event organizers. Event attendances are leveraging on-chain and off-chain smart tokens to claim benefits or access services that improve their event experience.
In sports, our smart token technology is bringing fans closer to the games they love while helping sports administrators close the loop on sponsorship ROI and fan participation. We are helping connect fans to web-based offers and services via smart tokens, creating value for all parties by leveraging tokens as APIs instead of speculative assets.
With Smart Tokens powered by TokenScript
Smart Tokens are programmable blockchain-based entities that incorporate business logic, enabling complex interactions with web-based systems and blockchain tokens in a self-contained, interoperable format.
They are similar to ERC20 or ERC721 tokens but with extendable structure & signed JavaScript to realize rich functions and full composability that DApps struggle to implement.
Officially introduced in the 2019 TokenScript design paper by our Co-founder and CTO Weiwu Zhang, Smart Tokens and the underlying technology has contributed to numerous advanced tokenization projects over the past five years. This includes :
> NFT Tickets at FIFA World Cup in 2018 and EURO 2020;
> Car Ownership Smart Token for Karma Automotive in 2020;
> Contributions to ENS, WalletConnect, QOIN, and EAS;
> Public goods support for Ethereum Foundation;
> AlphaWallet as the 1st mobile wallet to support NFTs and smart tokens;
> AlphaWallet as the most forked open-source wallet for advanced token use cases;
> Open Loyalty for events: Devcon6 2022, DevConnect 2022, EDCON 2023
> Open Loyalty for CatchMax, Perion Gaming, La Prairie Switzerland, Nifty Tailor.
Our team has contributed to the Ethereum ecosystem via ERC-875, EIP-1386, EIP-1387, EIP-1388 and ERC-5169 which was recently accepted as a new Ethereum Standard.
Smart Layer will accelerate the integrated web
Smart Layer is an integration bus that will accelerate the Integrated Web by making it far easier to tokenize web services and/or integrate smart tokens in order to deliver better user experiences and increased business efficiency.
It operates as a programmable blockchain-based service network and facilitates the execution of smart token logic, enabling complex interactions with various systems and smart tokens in a decentralized, scalable, and secure manner.
For token issuers, it enables the creation and management of programmable smart tokens. For web services, it acts as a middleware that makes it much easier to integrate web services and token functionality.
Smart Layer Network powered by SLN
The smart Layer network operates using two distinct tokens. The primary token, known as the ‘Governance Token, SLN’, is of significant importance as its owners stand to benefit from the network’s growth. The secondary token, referred to as the ‘Service Unit Token, SU’ (a stable token tied to service resources), is used to redeem services provided by the Smart Layer Network. Its value corresponds to the volume of services it can secure. This approach is designed to balance the interests of both investors and network users.
Holders of SLN tokens can vote in protocol decisions, fee %, benefit from the network’s growth, and earn direct revenue and token rewards from operating nodes. As these incentives are not tied to the service costs of the protocol, users, and businesses issuing tokens can enjoy a stable product with a predictable pricing model. The value of the SLN token is directly linked to the expansion of Smart Layer network size and usage. SLN demand will be driven primarily by mainstream web2 users and use cases.
Launching the Smart Layer Network
The Smart Layer Network will launch the governance token STL in late 2023, allowing the community to play a key role in network design and rollout through 2024 and 2025.
Early-stage use cases in 2024 will focus primarily on Open Loyalty solutions from Smart Token Labs and large enterprise partners. This will involve key verticals such as events, sports, and membership, where tokenization has proven value in terms of user experience and efficiency.
In 2025, we expect to onboard increasing numbers of large web2 companies that will issue Smart Tokens to connect 3rd party web services via Smart Layer Network. Key verticals likely to include: travel, automotive, events, and loyalty.
Build the integrated web with us
We are immensely proud to have launched Smart Layer today and to be on track to release our SLN governance token at the end of calendar 2023.
There are myriad ways for you to contribute to the project and get involved including by creating your own Smart Layer Pass at smartlayer.network or by joining our Twitter or our Discord here.
We hope you will join us in shaping the next wave of tokenization based on a shared vision of an integrated web. A vision that hasn’t changed for us since 2017 but feels more relevant and timely than ever before.
