How eSync Network Successfully Evolved to Meet Real World Needs

How eSync Network Successfully Evolved to Meet Real World Needs

By Sally Meouche – Ghrawi, Executive Board Member of eSync Network

1. How has eSync Network’s focus shifted from its beginnings as eCredits Blockchain to its broader current ecosystem?

eSync Network evolved from its origins as eCredits Blockchain, marking a strategic shift to address a broader range of real-world challenges beyond facilitating merchant-consumer interactions. This development aligned the platform with its expanded capabilities, showcasing a commitment to bridging the gap between the theoretical potential of Web3 and practical, everyday use cases. The mission broadened to develop real-world solutions across different sectors, facilitating the tokenization of various assets like real estate and jewelry, which used to be out of reach for ordinary investors. eCredits Wallet remains a very important use case on the eSync Network, but the sole focus has expanded to encompass a broader spectrum of real-world use cases to bridge everyday life with Web3 in many areas. 

2. What were the major challenges eSync faced while expanding into real estate and gemstone tokenization?

One of the major challenges was the limited understanding and trust surrounding blockchain technology in traditional sectors like real estate and luxury goods. Many industry players had heard about blockchain and cryptocurrencies before but were either unaware of their potential or remained skeptical that they would bring any value to those industries. 

eSync Network addressed this by showcasing use cases that demonstrated reliability and tangible value propositions of tokenization. Initiatives like Rocksolid Estate AG and the Habsburg Gemstone Token (GEM) serve as successful real-world implementations, illustrating how blockchain can unlock liquidity, enable fractional ownership, and democratize access to previously exclusive markets.

3. How does tokenization impact traditional sectors like real estate and luxury goods, and what challenges have you faced?

The impact of tokenization on traditional sectors such as real estate and luxury goods is that it opens up new investment opportunities and increases the accessibility of these assets to a wider audience. By democratizing access to these investments, investors around the world can participate in opportunities they might not have been able to before. 

As mentioned previously, one of the major challenges eSync Network faced was the limited understanding and trust in blockchain technology in more traditional industries. Therefore, the introduction of robust processes that guarantee the authentication and verification of physical assets and their tokenized counterparts, as well as ensuring compliance, will be critical to establishing more confidence among organizations and consumers in these traditional sectors. 

Additionally, reaching these more traditional audiences relies on creating seamless interfaces that they are comfortable using. This is a challenge most projects in the space have faced and are currently prioritizing in order to ensure a user-friendly experience. By building trust and integrating blockchain technology with existing systems as seamlessly as possible, we’re all on the right path to unlock the full potential of tokenization.

4. What led to the decision for a token burn and how do you evaluate its success in boosting network value and stability?

The decision to conduct a token burn for eSync Network’s native coin ECS was driven by the network’s preparation for its upcoming transition from a Proof-of-Authority (PoA) to a Proof-of-Stake (PoS) consensus mechanism. This pivotal shift aims to enhance the network’s security, scalability, decentralization, and energy efficiency. However, it necessitated a substantial modification to the ecosystem’s economic model, prompting the need for a token burn.

The rationale behind the token burn in March this year, was to address potential inflationary pressures arising from the new token issuance dynamics under the PoS consensus mechanism. The initial total supply of ECS was 63 billion tokens and 52.5 billion ECS tokens were burned, representing 83% of the entire V1 supply. Without a burn mechanism, the continuous reward of new tokens for staking and network participation could lead to an oversupply. The new total supply of ECS is 10.57 billion.  

By reducing the overall token supply through a burn, eSync Network aimed to counterbalance this issuance, effectively controlling inflation and maintaining the ECS coin’s value and utility within the ecosystem. The burn was a strategic tool to fortify the network’s economic efficiency and promote a healthier, more stable environment for the tokenized assets and applications built on the eSync Network.

5. How does eSync stay current with emerging technologies, and are there new technologies you are looking to explore?

eSync Network closely keeps an eye on industry trends and monitors advancements across the industry, exploring the potential of different projects to integrate into its ecosystem. A key area of focus is the tokenization of RWAs and the associated technical developments required to facilitate this process effectively. To enable seamless tokenization, eSync Network is enhancing its smart contract capabilities. The network is improving smart contract functionality to simplify the process of tokenizing real-world assets, such as real estate, artwork, or intellectual property. This will enable fractional ownership, improved liquidity, and transparent tracking of asset ownership.

One significant area of interest is the potential of Decentralized Physical Infrastructure Networks (DePINs). DePINs offer decentralized control and ownership of physical infrastructure, a utility that eSync is keen to explore further. By staying on the pulse of these emerging technologies and actively pursuing their integration, eSync Network aims to future-proof its platform, ensuring it remains at the forefront of innovation and continues to provide cutting-edge solutions for real-world challenges across diverse sectors.

6. What strategies have been effective in driving user adoption, especially among those new to blockchain technology?

One of the most effective strategies for driving user adoption, especially among those new to and unfamiliar with blockchain technology, has been showcasing real-world use cases that demonstrate the tangible value propositions of tokenization and decentralized solutions within familiar contexts. By tokenizing assets that users are already familiar with, these new investment opportunities better resonate with users who may have been hesitant about adopting blockchain solutions but understand the concept of investing in traditional asset classes like real estate. 

7. What are the upcoming milestones for eSync Network, and how do they fit into your long-term plans?

One of the major upcoming milestones for eSync Network is the continued expansion and adoption of its blockchain solutions for tokenizing RWAs across various sectors. This includes industries such as real estate, luxury goods, supply chains, voting systems, and environmental markets like carbon credits. Facilitating the tokenization of RWAs and enabling fractional ownership are significant focus areas.

eSync Network’s long-term plans revolve around bridging the gap between Web3 projects and real-world applications, continuously improving the underlying infrastructure of the blockchain to meet the evolving needs of various industries and communities worldwide.

8. What advice would you offer to other Web3 projects looking to merge with real-world applications?

It is crucial to identify specific pain points or challenges in the industry that blockchain technology can effectively address, rather than viewing blockchain as a one-size-fits-all solution. It is essential to assess whether the technology aligns with your business model and can enhance your value proposition, provide a competitive advantage, and scale with your growth needs. This assessment will help ensure that the integration of blockchain drives real value and is not merely a trendy addition.

Emphasizing user experience and accessibility is another critical point for the widespread adoption and success of Web3 projects. Prioritize creating seamless and easy-to-use interfaces that cater to a diverse user demographic, and foster sustained engagement and trust. 

9. What trends in the Web3 space are you most excited about, and how is eSync preparing to engage with these developments?

Two key trends that I think will shape the future of this space are the tokenization of RWAs and DePINs. On tokenization, eSync Network is already doing this while extending more use cases in the future. DePINs have a huge potential for generating passive income, which aligns with eSync’s mission of using blockchain to generate passive income for the masses. These networks leverage decentralized technology to manage and monetize physical infrastructure, offering a new revenue stream and enhancing the value proposition for our users. The integration of DePINs can significantly boost the utility and financial benefits within our ecosystem, making blockchain technology more accessible and beneficial for a wider audience.

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Sally Meouche – Ghrawi, Executive Board member at eSync

As a co-founder of Tekuno and CEO of 4pt.O Venture Labs, Sally has been working on bridging the gap between the theoretical underpinnings of Web3 and their practical applications in the real world. Under Sally’s leadership, the eSync Network is committed to providing value beyond the digital realm into tangible, everyday solutions. Sally holds a Master of Public Policy and Sustainable Development from Maastricht University and a Graduate Certificate in Strategic Management from Harvard.