Spl.yt — The E-Commerce eNFT Infrastructure
One of the hottest projects that’s around the corner of listing is Spl.yt, a project that combines NFT’s with E-Commerce. We’ll be diving deep into the project to see what the product is all about, who’s behind it and what we can expect when the project enters the market.
On top of that, we’re hosting an AMA on the 25th of March with the Splyt team which you can attend in our newly formed Telegram channel SylantsRoom! Exact time TBA, follow Sylant on twitter to be updated: InvestorSylant
To prepare yourself for the AMA, we proudly present our project review beneath!
What is Spl.yt?
Spl.yt is an NFT infrastructure to power decentralized finance & e-commerce markets. The biggest selling point is the focus on e-commerce platforms. The project takes the current NFT hype and turns it into an actual use case. Whereas lots of projects are solely using NFT’s as collectibles, Spl.yt is giving every single NFT a function.
How, you might wonder? The core idea of the project is pretty simple. Every single item in an inventory of an online store is marked with their own NFT, or eNFT as Splyt loves to call it. Thereby, you’ll notice that the protocol creates a better and more efficient e-commerce system that helps buyers, sellers and marketplaces to save time and money by automating key intermediary functions.
By uploading the entire inventory to the Splyt ecosystem any seller can incentivize others to sell their products and automatically pay them a commission for doing so. Anybody can create a Shoppify — Powered by Splyt online store and start selling products that are available in the Splyt system. Connecting to Splyt not only has supply chain management benefits, but vastly increases the reach of sellers. Ultimately that’s the most important aspect of e-commerce, reaching the customer.
Every single item can easily be tracked and traced, showing the customer an open and transparent process. The blockchain technology behind it all verifies each step along the way, and creates an un-editable chain of events. This allows insight to sales, value retention, resales and even solves the double spend problem. This piece of transparency is something that’s currently not widespread available on the blockchain.
On the side of the businesses, using the eNFT inventory database system, there are multiple benefits;
- Constant insights in inventory both in warehouses and on the road
- Open and transparent stance towards customers
- Streamlining affiliate sales by verifying each and every step in the supply chain
- Dropshipping is no longer a pain, but a true pleasure for businesses
The one issue for brands allowing third-parties to re-distribute their product is the fact that prices are highly inflated and in general dropshipping stores have poor customer service. The brands will look flawed whenever the dropshipping store runs into any problems, which will be eliminated through the use of the Splyt protocol. The actual brand can prove their part of the supply chain, and confirm the dropshipping store is responsible for the last piece of delivering the product.
For a short introduction of Splyt’s product, we kindly invite you to watch a product demo that’s available here;
What are the features of the Splyt protocol?
Built on Polkadot, Splyt utilizes the fast transactions, near-zero transaction fees and instant settlement of the Polkadot ecosystem. The underlying tech Splyt is using is rather complex, and is described in detail in their technical paper. However, we like to briefly touch every single feature of the Splyt protocol to gain a broader understanding of the company’s mission and ambitions;
- Global inventory management: With the creation of an unique NFT per item sellers will know their true inventory at every moment. By pushing the entire to the blockchain, the inventory is constantly verified and made timeless.
- Instant Affiliate Payouts: After a successful sale from the global inventory, affiliate sale will receive instant payouts. In the traditional way of affiliate sales, these payouts take long transaction periods due to verification issues. Through blockchain technology, sales can be verified instantly and payments happen accordingly.
- Universal Reputation System: Anything that happens on a blockchain will stay there forever. Thus, any online store utilizing the Splyt protocol will gain a certain reputation over time. This increases ordecreases whether ther are handling orders correctly, preventing disputes and in general taking good care of customers.
- Pre-Dispute Resolution: Any disputes happening between customer and seller, or between seller and affiliate can be streamlined using the Splyt protocol. Since every single step is verifiable, confusion is imminent and disputes can be resolved prior to their occurrence.
- Real World Assets DeFi: The tokenized inventory can be used as collateral for off-chain decentralized finance. The exact mechanics behind this feature will be shared at a later stage by the Splyt team.
- Marketplace Analytics: Anything that happens with a seller’s online stores is verified on the blockchain, thus on-chain analytics can help sellers maximize sales with smart insights.
Briefly touching on the feature Real World Assets DeFi, because it could be one of the key components in driving Splyt to the powerhouse it deserves to become. For emerging brands liquidity is very important and they often don’t have the access to capital they require. Splyt offers collateralized loans which could be a very important service for these emerging brands. These brands are able to acquire loans from the Splyt ecosystem and put up their inventory as collateral, which will be stored in centralized storage facilities.
The products are still available to sell online and the borrower repays the borrowed amount. If the borrower fails to live up to the agreement, Splyt is able to liquidate the inventory via a Flash sale and close the lending agreement. Due to the overcollateralized inventory the risk associated with this is minimized, the whitepaper mentions an example of a loan for $10,000 on $40,000 worth of inventory. This would be different per case and determined based upon data collected in the marketplace.
The above features show the uniqueness and complexity of the Splyt protocol. Whereas their protocol is diverse, the project chose a clear direction by picking a select market instead of attempting to be a jack of all trades like many other projects. In the illustration below, there’s a visual representation of the functioning of the Splyt protocol.
The $SHOP token
In the heart of the protocol the SHOP token can be found. The token has been brought to life in order to create incentives for both sellers, customers and outsiders to constantly sustain and grow the Splyt ecosystem. Anyone holding SHOP tokens can earn rewards and voting rights to decide about the further development of the ecosystem.
There are four primary functions of the Shopx token:
- Enabling users to access Splyt Core and thereby allowing individuals to buy and sell inventory on the global inventory blockchain.
- Disincentivizing malicious behavior such as spamming the network, defrauding other ecosystem members, or failing to engage in real-world behavior that mirrors on-chain agreements.
- Incentivizing participating retailers to pool inventory that are redundantly performed in legacy e-commerce systems, reducing barriers that cause oligopolistic corporations to thrive in the current e-commerce regime.
- Compensating individuals, such as arbitrators and listing validators, who help ensure the integrity of the Splyt Core ecosystem in a grassroots environment.
On top of that, the SHOP token holders will be able to stake their tokens in various ways, both short and long, locked and flexible. The exact details will be shared once this will become available further down the road.
- Ticker: SHOPX
- Token standard: ERC20
- Network: Ethereum, (Spl.yt will migrate to Polkadot)
- Total supply: 500,000,000
- Initial market cap: $835,000
- Splyt raised $500,000 in their Seed round.
- Splyt raised $750,000 in Private A round.
- Splyt raised $700,000 in Private B round.
- Splyt raised $249,000 in Public sale.
- Advisors — 5 %
- General Reserve — 8%
- Staking Reward Pools — 10%
- Private Sale — 18%
- Team — 15%
- Research Foundation — 20%
- Ecosystem and Referrals — 22%
- DEX Liquidity and MM Liquidity Provider — 2%
You might wonder, who’s behind this project? Who are the people trying to disrupt a multi-trillion industry that’s rapidly evolving like no other market, the e-commerce market? Splyt’s team is talented, experienced and most importantly they have a very impressive board of advisors that will help in scaling their project to ensure they’ll meet their ambitions.
Cyrus Taghehchian — Founder and CEO
Founded Pollenly (a community-driven social commerce platform) and MaisonDu (an e-commerce Defi system that aggregates luxury fashion inventory into a global catalog as NFTs on the blockchain for stylists and boutiques to pull from and sell on their online stores).
Cyrus worked as a digital marketing consultant in big companies such as Intel Corporation and Deloitte.Formerly he worked as an Executive Agile Product Coach for PayPal. He holds an MBA in Entrepreneurship and Innovation at The Paul Merage School of Business at the University of California, Irvine.
Dipen ‘Josh’ Joshi — Founder and CTO
Dipen ‘Josh’ Joshi worked for JD Power as a full-stack developer. Also, he worked for Ethnews where he created blockchain-based projects like a KYC platform, a competition app, and a hosted ether bank. Dipen holds a Computer Science degree from California State University Northridge.
Lindsey Mallon — CPO
Lindsey is one of the founders at MaisonDu and Nadjarina (A Conscious Luxury apparel brand with a focus on fair-trade, high-quality materials and old-world craftsmanship). She holds a Bachelor’s degree in Fine Arts at Rhode Island School of Design.
Joel “CoachK” Kovshoff
Joel, better known in the industry as CoackK, is a very well connected individual who’s active in multiple capacities. As an influencer on youtube and twitter, as the CMO of Anrkeyx and as Strategic advisor to multiple projects, besides Splyt Core he’s a Strategic advisor at FinXflo, Paid Network, Ferrum network, etcetera.
Kyle founded World Super Lotto (WSL), the world’s first global lottery based on Bitcoin. Also, Kyle is the CEO of Paid Network (First Borderless Civil Legal System using DeFi tools to ensure you Get PAID).
Is an advisor at Spl.yt. He founded RxVantage (they connect healthcare providers with the precise life science experts and resources they need, when they need it, to improve patient care). Greg was a Professor of Law and Director of the Center for Entrepreneurship and Technology Law at Pepperdine University School of Law.
Greg advised a lot of venture-backed companies such as DocStoc, Music180, Tsayo, and FunBits Interactive. Greg holds a Doctor of Jurisprudence degree at the University of Southern California Law School.
Is an advisor at Spl.yt. He worked as a director at SEPHORA for 5 years. Presently he is working as an engineering director at PepsiCo. He holds a Bachelor of Science in Mechanical Engineering at Columbia University in the City of New York.
These days all it comes down to the success of a project are the tech, the team and the partnerships. Splyt is nowhere without people actually using their product. Now in contrast with years ago where a project like Splyt would announce their project without any partnerships, Splyt has that covered in a major way. We’d like to mention four partnerships in specific.
Maison Du is the partnership that adds the most value to Splyt’s proposition. Through Maison Du, a luxury market e-commerce platform, Splyt will put its product to actual use as the first use-case. Maison Du is not just another dropshipping store, it’s rather a major player in the online retailing world. With 700+ brands, more than 1,100 affiliates and over 1,000 testnet transactions Maison Du is ready to start utilizing Splyt’s product on full scale straight away.
Early February Master Ventures officially announced their partnership with Splyt. The major part of the partnership is incubating Splyt and bringing it to the masses. The past couple of months, it’s safe to say that Master Ventures has been doing really well in making that come through. With a private sale that’s more than 100 times oversubscribed, there’s a lot of demand and hype around the project. Besides that, it was Master Ventures that made the connection with the next partner come to live.
What is a project launch without a decent launchpad? Splyt partnered up with Paid Network to host their public sale on the Ignition platform. Lately Paid has been all around the industry with dozens of partnerships, and a lot of love to their community. With a community consisting of thousands of members, there’s a giant spotlight shining on Splyt as we speak.
In their most recent partnership with Bridge Mutual, a decentralized discretionary risk coverage platform, Splyt will integrate Bridge Mutual’s risk coverage application into their interface. As mentioned in their announcement article: “This is done by fusing their widget on the Splyt platform to provide a seamless experience for our users, guaranteeing the ability to purchase coverage for their exchanges without worry”.
Splyt started their journey back in 2016 when two founders met and aligned their visions. In 2017 the two started creating the first smart contracts and thereafter years of development followed. Right now, there’s a functioning testnet that’s ready to start moving and accepting users. Their mainnet is not live as we speak, but it’s set to release in the first quarter of 2021.
As we look further down the road, Splyt’s current roadmap is not very detailed and large, but it covers the road for the upcoming year. Plus, the points that are on the roadmap are large milestones that aren’t to be neglected such as the integration with Polkadot, integration with both Shopify and WooCommerce and a whole lot more in store. The future’s looking bright, but it all comes down to finding the right partners to utilize the product.
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We’re hosting an AMA on the 25th of March with the team which you can attend in our Telegram channel SylantsRoom! Make sure you follow InvestorSylant on Twitter to be updated. There will be giveaway prizes for best questions. Prepare any questions you may have and get ready for the AMA, we’re very excited and will update this review with the most important questions afterwards!
Splyt is a new project with an ambition to reimagine e-commerce by introducing NFT’s, utilizing blockchain technology and smoothening the overall process. The vision is ambitious, but it will all come down to the right execution to see if they can realize their ambitions. E-Commerce has been a growing trend for years now that is open to adapting new technologies, but blockchain technology has yet to merge with this industry.
When Splyt manages to partner up with the right businesses, gain enough traction and normalize the use of NFTs, we can see Splyt potentially handle millions of transactions and thereby reach a large market cap. One important step of this process is their migration to the Polkadot Blockchain. This will improve transaction speed and reduce the costs of transactions as currently Ethereum’s Blockchain is much slower than Polkadot.
We’re keeping a close eye on Splyt, and can’t wait to see what else they have in store, pun intended. When Maison Du starts using their product and more and more people will interact with their technology, we’ll soon see whether their solution is a product market fit, or that competitors will find their way to take over their position!