How to scale all blockchains!?

This week we are welcoming Eleni Steinman, Strategy & Operations from bloXroute Labs, on a mission to:

“scale all blockchains at the network layer, or Layer-0"

Which problem is bloXroute trying to solve?

Today blockchains are unable to achieve their potential of enabling solutions such as micropayments, IoT or decentralized gaming due to a scalability bottleneck. This bottleneck happens at the network layer and bloXroute Labs has built a Blockchain Distribution Network (BDN) to do what Akamai did for the internet — propagate data fast to allow blockchains to scale.

Does the work of bloXroute impact the Security Token ecosystem?

The BLXR token is a Security Token. It allows owners to receive dividends of bloXroute’s net revenues. Thus, the BLXR exemplifies one of the new models Security Tokens enable for investors.

What role will the BLXR Security Token play within bloXroute’s Blockchain Distribution Network (BDN)?

BloXroute aims to create value for the blockchain ecosystem by unlocking transaction scale and in return captures a small amount that gets shared with the holders of the BLXR Security Token. This token has no use in bloXroute’s solution, but rather gives holders access to bloXroute’s revenues through a dividend.

In your view, what are the pros and cons of conducting a Security Token Offering?

Pro: We are able to allow the global community to join in our project and access our net revenues. This also ​can happen​ a lot sooner than traditional funding where investors often wait 7–10 years for an IPO or acquisition. It has also been exciting to be on the forefront of a new wave of financing and ​work to​ build out a legally compliant model.

Con: Our top priority is to ensure we are always legally compliant which can be cumbersome, expensive and unfortunately, sometimes means not everyone can participate in the sale.

Where do you see the biggest challenges for the Security Token ecosystem when it comes to democratizing access to capital markets for companies and (retail) investors alike?

Our securities laws exist for a reason — to protect both investors and companies. However, some of these laws may need to be updated to take into account new technology. It can be quite complex to adhere to applicable laws while seeking to take advantage of technological advances.

How far are we when it comes to the trading of Security Tokens? What are the biggest problems and how/when will they be solved?

We’re here! Security Tokens are being traded, albeit perhaps not at the level individuals would like. It took bitcoin 10 years to boom and while I suspect it will take much less time for Security Tokens, the market is still developing as we are just starting to see new Security Tokens being issued and users learning about this investment opportunity.

What is the one thing you believe in regards to Security Tokens most other experts within the industry would disagree with?

The accredited investor mandate is a good one. The government has a compelling interest to protect its citizens from bad actors and while it is an imperfect proxy for sophistication, it does ensure those that invest are financially secure enough to take a potential loss. The ICO boom and the following crypto winter revealed how many of these projects were speculative and accredited investor laws help shield the number of citizens at risk.

What is the most exciting happening you are waiting to see in the Security Token Ecosystem in Q4 2019?

We are starting to see more transfer agent and ATS licenses and broker-dealer approvals. This means there will be more places for tokens to trade and more service agents to help facilitate trading and other functions such as dividends. These companies are key parts of the Security Token ecosystem and we’re just starting to see them come to the helms.

Which person do you follow to improve your learning curve?

Matt Levine! He is by far the best writer on financial news. His insights into traditional markets are often applicable to crypto and his hot-takes on crypto are often both spot on and hilarious.

What’s the best advice you’ve recently received?

Everyday spend 5 minutes to ponder a hypothetical: if your daytime hours were cut by 5–10% what would you eliminate (and you can’t say sleep!). Questions like this force you to think about your priorities and make sure you are spending your precious time on what truly matters to you.

Thank you for the Interview!

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Disclaimer:

The Company has prepared this material based on information available to it, including information derived from public sources that have not been independently verified. No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein. The information provided herein should not be considered a comprehensive representation of the Company’s cash generation performance. Various factors could cause the actual results, performance, or achievements of the Company in its development of the BLXR network to differ materially from any future results, performance, or achievements expressed or implied herein. The information provided herein is preliminary and subject to change; the Company undertakes no obligation to update or revise these forward–looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Inevitably, some assumptions will not materialize, and unanticipated events and circumstances may affect the ultimate financial results. The information provided herein is inherently subject to substantial and numerous uncertainties and to a wide variety of significant business, economic and competitive risks, and the assumptions underlying the projections may be
inaccurate in any material respect. Therefore, the actual results achieved may vary significantly from the forecasts, and the variations may be material.
This information contained herein is provided to you solely for purposes of providing you with what we believe could be material information about bloXroute and its business. No money or other consideration is being solicited with respect to any offering of securities, including an offering under Regulation A or Regulation D, and if sent to bloXroute in response for such an offering, will not be accepted. bloXroute is testing the waters under Regulation A of the Securities Act of 1933, as amended. This process allows companies to determine whether there may be interest in an eventual offering of its securities. bloXroute is not under any obligation to make an offering under Regulation A. bloXroute may choose to make an offering to some, but not all, of the people who indicate
an interest in investing, and that offering may not be made under Regulation A. For example, bloXroute may determine to proceed with an offering under Rule 506(c) of Regulation D, in which case it will only offer its securities to accredited investors as defined by Rule 501(a) of Regulation D. If bloXroute does go ahead with an offering under Regulation A, any offer to buy securities under
Regulation A will be made only pursuant to an offering statement filed with the U.S. Securities and Exchange Commission (the “SEC”) pursuant to Regulation A, and the information provided herein does not relate to any such offering statement or any offering under Regulation A. No offer to buy securities under Regulation A can be accepted and no part of the purchase price can be received for an offering under Regulation A until such an offering statement is qualified by the SEC. In any such future and potential Regulation A offering, any offer made pursuant to an offering statement may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of its acceptance given after the qualification date, and an indication of interest made by a prospective purchaser in any such Regulation A offering is non-binding and involves no obligation or commitment of any kind. It is possible that the bloXroute will never engage in the Regulation A offering for many reasons.