What is the Splyt Protocol and the SHOPX Token?

Ivan On Tech

Written by Ivan on Tech

June 24, 2021

Founded by the Splyt Core Foundation, Splyt is a business-to-business (B2B) transmission control protocol for E-commerce Non-Fungible Tokens (eNFTs) facilitating mobility services. Powered by the native Splyt token (SHOPX), the Splyt protocol is used to improve global reach and customer experiences using a decentralized network designed for e-commerce. Furthermore, Splyt helps to increase revenue and return on investment (ROI) for brands, businesses, and affiliates, by creating a sustainable and equitable method of profit sharing. Moreover, Splyt is leveraging the power of blockchain technology to provide a decentralized e-commerce, or “dCommerce” platform to reduce friction and help to build strong working relationships between business and partners.  

In this article, we’re going to dive into the Splyt network and explore the underlying fundamentals of the Splyt protocol. Moreover, we’ll explore the Splyt Core Foundation and the roles and utilities of the native SHOPX token. 

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What is Splyt?

Created as a layer-2 non-fungible token (NFT) infrastructure powered by Polkadot, Splyt aims to decentralize the e-commerce supply chain industry. Splyt was designed to make journeys from A to B easier, whatever that journey may be. The Splyt protocol facilitates a range of mobility solutions, from airport transfers to bike shares and scooters. Incorporating partners servicing over 150 countries in more than 2,000 cities, Splyt makes it easy for users of familiar transport applications to view local travel options in any location.

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The Splyt protocol is an open-source blockchain-based protocol that enables transport providers a single-contract integration with their global mobility network. Moreover, Splyt offers a multi-lingual support team for their clients. Splyt makes connections and networks at platform level, aiding user-end customers around the world. The decentralization of e-commerce is deemed by many to be the next big step in digital commerce. Often, this is referred to as “dCommerce”. Splyt aims to be a part of this evolutionary development by bridging the gap between brands and consumers in a secure, transparent, and decentralized manner. 

The Splyt infrastructure is essentially a set of communication protocols that incorporates a novel eNFT (E-commerce Non-Fungible Token) inventory database. The self-enforced system offers seamless sales transactions, removing liability between supply chains and e-commerce platforms thanks to the security and transparency of blockchain technology. Further, the protocol streamlines multi-platform affiliate sales and offers plug-and-play functionalities. Splyt clearly states that it is not a marketplace. Rather, Splyt is referred to as the ‘TCP/eNFT’ (Transmission Control Protocol for E-commerce Non-Fungible Tokens) used by other marketplaces. Projects can choose to start a fresh platform within Splyt or plug into the Splyt protocol directly. Splyt even facilitates Web2 compatibility with leading e-commerce giant, Shopify. 

Splyt Core Foundation

The Splyt protocol was designed by Splyt Core Foundation, an innovative tech start-up based in Los Angeles. Splyt Core Foundation is a non-profit organization with the strategy of raising funds for native Splyt token holders (SHOPX token) and users of the decentralized protocol. 

Blog Splyt Core Foundation

Splyt Core Foundation recognizes the time-sensitivity of bringing the platform to market. Blockchain only really became legitimately recognized as a cutting-edge technology in 2020 in the US. Moreover, this year grounded the global economy to a halt due to the Covid-19 pandemic with shops shutting and millions more people purchasing online goods and services than ever before. Splyt Core Foundation wants to bring the Splyt protocol to the market front as the solution for decentralized global e-commerce mobility and transport services. 

Splyt Token (SHOPX)

The native ERC-20 Splyt token (SHOPX) is the lynchpin of the protocol, securing the Splyt network. Also, the SHOPX token is a multi-functional utility token designed to improve the dCommerce experience for users. Moreover, the SHOPX token is used in conjunction with smart contracts in eNFTs (explained further on) to facilitate a Token Curated Registry (TCR). A TCR enables international product and service listings with “decentralized arbitration capabilities”. 

Blog Splyt SHOPX Token Protocol

As Splyt is still in the early stages of development, full utility and applications for the SHOPX token has yet to be implemented. However, Splyt has provided a breakdown of future updates and rewards SHOPX token holders can look forward to. This includes a liquidity mining pool where the longer you stake, the higher the returns you will see. Also, the SHOPX token is being used to incentivize adoption of the platform with higher rewards during the first year of launch. Users will receive SHOPX token rewards up to 100% of their subtotal purchase value when spending on the Splyt platform. Further, if users decide to pay for services with the SHOPX token, it will unlock exclusive discounts.

The SHOPX token is additionally used to incentivize honest behavior on the Splyt network. Sellers on the platform can soon earn SHOPX token listing rewards for facilitating valid transactions with no disputes. Sellers will earn more from the designated sales reward pool with each completed successful transaction. Moreover, SHOPX token holders can become validators and secure the Splyt network by staking their tokens. In return, users will earn more SHOPX tokens, with top validators earning even more Splyt tokens to enable validation of higher stake disputes. This could be a great opportunity to earn a passive income with crypto!

How Does the Splyt Protocol Work?

Splyt network integrates several layers to the novel protocol. The Splyt protocol is designed with the Ethereum Base Layer Protocol as its foundation. As the largest smart contract-enabled blockchain, it is a wise choice to have the network security of Ethereum underpinning a project. 

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Then the next layer in the Splyt stack is Polkadot Substrate interoperability. Often referred to as the “blockchain of blockchains”, Polkadot is the largest cryptocurrency project focused primarily on interoperability within the blockchain industry. Polkadot is created using Substrate – save our Exploring Substrate Deep Dive article if you’d like to learn more! Implementing a Polkadot substrate layer facilitates interoperability with many external blockchains ensuring smooth communication and asset transactions across chains. Moreover, the integration with Polkadot via the Ethereum Virtual Machine (EVM) bridge on the Plasm Parachain means transactions on Splyt will be faster with much cheaper gas fees

On top of the Polkadot layer is the Splynt TCP/eNFT protocol (Transmission Control Protocol for E-commerce Non-Fungible Tokens). This layer creates a standardized protocol for how e-commerce funds and data are communicated between parties. On top of this layer are the online e-commerce stores that are integrating the Splyt protocol. 

Blog Splyt Protocol Layers

eNFTs

The Splyt protocol could not operate without eNFTs (E-commerce Non-Fungible Tokens). eNFTs hold various responsibilities and use cases for the Splyt network. Primarily, eNFTs represent real-world off-chain products and tokenize them onto the blockchain. This eliminates any double-spending issues and opens up transparency of a product’s lifetime data. eNFTs are stored in the inventory catalog with real-time tracking of inventory stock. As with traditional non-fungible tokens (NFTs) used within the arts, gaming, and collectibles industries, NFTs provide digital proof of authenticity for assets. The eNFT data traceability is publicly transparent with the sales and history of a product being stored in the NFT metadata.
To eliminate counterparty risk, Splyt offers an eNFT bounty marketplace. Brands often set a bounty for each eNFT traced on the blockchain for valid attributions. Moreover, Splyt offers decentralized finance (DeFi) pools for collateralized inventory stock represented on the blockchain. Stock is tokenized as eNFTs and verified using decentralized warehouses.

Protocol 

The main protocol feature of Splyt is the TCP/eNFT (Transmission Control Protocol for E-commerce Non-Fungible Tokens). This helps produce a universal standard for the communication of e-commerce data. 

When inventory is tokenized onto the blockchain, various properties are recorded into the eNFT metadata. This could include affiliate requirements, profit share terms, or tracking data/SKU numbers. When the eNFT is minted it is then broadcast to the Splyt network where all affiliates and marketplaces view near-instantly synchronized inventory updates transparently. 

Each eNFT minted on Splyt contains within itself an escrow smart contract. This is in place to offer security for users throughout the lifecycle of transactions with each eNFT. If a holder decides to sell their eNFT they can simply relist it on the global database. The purchase history is automatically updated and immutably stored with each sale of an eNFT. 

Splyt Protocol Solutions

Whether you’re a mobility service, developer, or business, implementing the Splyt protocol provides an array of advantages. 

Blog Splyt Protocol Image

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For Applications 

Splyt network offers platforms and applications a solution for keeping users happy. By integrating the Splyt protocol with one contract, applications can offer users airport transfers, ride-hailing, and micromobility features. Soon, the Splyt network will be facilitating food delivery too. With one simple installation, Splyt allows users to search, book, and pay for transport around the globe. 

For developers or applications searching for an additional revenue stream, the Splyt protocol can help with increasing application revenue. Moreover, adding transport and mobility features to applications will often offer a better customer experience and increased overall satisfaction. The Splyt global ride-hailing network and airport transfers offer seamless door-to-door services. Adding the micromobility feature makes traveling easy anywhere in the world, allowing your customers to explore at ease using your application.

For Providers

With services in over 2,000 countries, Splyt isn’t slowing down with the number of mobility partners. Any mobility or transport provider can integrate with the Splyt protocol, unlocking a global network. By proxy, anyone anywhere, including international travelers, can book a ride with your service. An increase in exposure to services is likely to bring an increase in service revenue. 

Blog Splyt Image

By connecting with Splyt, customers can connect with mobility providers using the comfort of their own familiar application. For transport providers offering airport transfers, the booking and transaction process couldn’t be easier. Splyt offers mobility providers the opportunity to be the go-to transport service for international travelers. With only a single contract integration, transport services including micromobility (bikes, scooters, etc.) can help visitors explore and travel internationally. 

Splyt Protocol & SHOPX Token Summary

In summary, the Splyt network is a communications protocol that offers a decentralized solution for the e-commerce supply chain. The protocol caters to application developers and businesses alike offering a global network of mobility service users and providers. Moreover, this covers transport from airport transfers to micromobility facilitating bike or scooter hire. The native SHOPX token is responsible for securing the Splyt network. The multi-utility token is also responsible for rewarding initial incentives for the adoption of the platform, honest participants, and rewarding users.

Blog Splyt Logo w/ Txt

Splyt protocol solutions offer plug-and-play, one-contract integration making it easier than ever to connect to a decentralized global user network. Moreover, Splyt believes this is crucial for bringing mass adoption to blockchain technology, offering an easy-to-use blockchain solution that seamlessly integrates with current IT infrastructures. Although Splyt has yet to fully launch all application features, the protocol appears to have strong fundamentals for growth and adoption ahead. 

Blockchain technology is being applied to a range of industries, from real estate, insurance, and supply chain management, to fashion, music, art, and sports! There is a range of blockchain-based career roles that don’t involve programming. If this sounds interesting, see our Blockchain Business Masterclass course at Ivan on Tech Academy. Upon completion, you should have sufficient knowledge to manage a blockchain-based project! Also, our Blockchain For Enterprise and OriginTrail 101 courses are great for students to learn how blockchain is being implemented exploring real-life use cases with global enterprises. Find all these and so much more, at Ivan on Tech Academy today! Also, don’t forget to follow us on Twitter @Academy_IOT! We’d love to hear your thoughts about Splyt and the SHOPX token!

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