Narvar

narvar

E-commerce businesses have grown massively over the past years; many buyers all over the world tended to shop online more or less regularly. In 2020, the COVID-19 pandemic completely changed the situation in the shopping industry…forever. Both e-commerce and brick-and-mortar were somehow affected, as the interest in online shopping has soared dramatically. E-commerce Gone Wild Let us have a look just at some unprecedented for : statistics 2020 According to Adobe’s Digital Economy Index, U.S. online retail businesses have abruptly in April, compared to the pre-lockdown era at the beginning of March. Online grocery shopping has grown by ! grown by 49% 110% daily According to Narvar, have tried a new shop during the lockdown period 56% of buyers According to eMarkete, Amazon's e-commerce sales Best Buy by Target by and Kroger by Those were the biggest sales figures ever for the mentioned companies. increased by 39.1%, 105.5%, 103.5%, 79.2%. Amazon affirmed that the 2020 holiday online shopping season was the biggest ever. This was confirmed by many other retailers As for , e-commerce will obviously keep its glorious march, regardless of pandemic and vaccination developments. eMarketer predicts 2021 the US online shopping sales to grow to $843.15 billion (up from $794.5 billion in 2020). What About Security? The lockdowns and restrictions have forced most of the consumers to adjust their way of leaving choosing internet shopping from home, in a safe and familiar environment. But is it safe to shop online? Online retail was always accompanied by some risks: damaged or unexpectedly low-quality goods, dishonest sellers unwilling to refund, etc. However, we will concentrate on the most important problem faced by business owners and their customers: . Online retail has always been and will always stay the hottest target for cybercriminals, and of course, the unprecedented success faced by e-commerce businesses in 2020 could not elude the hackers’ attention. e-commerce cybersecurity Why? Simply because is becoming one of the . The convenience of online shopping was particularly important during 2020 lockdowns, but . According to Cyberpion, personal data most valuable assets the more people shop online, the more it attracts hackers 83% of the top 30 US retailers are vulnerable to cyber-attacks. Apparently, both the online stores and the customers are affected. To buy something online, the customers need to provide their to the online store. They must entrust their , etc. Cybercriminals can steal that information from the online store database to make money. At the same time, if the clients’ personal data is compromised, it can ruin completely the , as it will be held accountable both to the clients and to the entities regulating the industry. personal data credit card information, e-mails, usernames, passwords company’s reputation Cybersecurity is a big responsibility. E-commerce business owners need to be very serious about . They just cannot afford to lose their customers’ data and their company’s reputation. Of course, many online retailers are aware of cybersecurity threats and are taking the necessary measures to guard against those. According to the VMWare Carbon Black 2020 Cybersecurity Outlook Report, have acquired new security tools, while and of them have invested in the cybersecurity workforce. online safety 77% of eCommerce business owners 69% However, cybercriminals are on the constant quest for new vulnerabilities and are working harder on their skills. Thus, online retailers need to stay constantly ahead: keeping up with the newest e-commerce cybersecurity threats is a must. So which are the for e-commerce businesses? biggest security threats 1. DDoS (Distributed Denial of Service) Attacks DDoS attackers send simultaneously a large amount of requests from hundreds or thousands of compromised IPs, to take your web resource down. When your online store is flooded with such a big amount of traffic, your customers are not able to make purchases. DDoS attacks disable your online store for several hours or even days, which is especially annoying during peak seasons. If your site is attacked during holidays, you lose a huge share of income (and sometimes customers), as your competitors…win. . 2. Phishing This is a type of fraud, aiming to access the buyers’ personal data (logins, passwords, bank card details). Phishing attackers often use mass mailing on behalf of popular companies with links to fake online stores that are outwardly indistinguishable from real ones (the site usually looks identical, but the URL may slightly differ from the original one). Naturally, after paying, the buyer receives nothing. 3. Malware (malicious software) Any software trying to infect a computer or mobile device is considered malicious. Cybercriminals insert the malware on victims’ websites for various purposes: obtaining personal data and passwords, stealing money, blocking the device owner. They can automatically redirect the website to another page or open multiple pop-up windows to mislead the consumers. 4. Ransomware Ransomware is one of the biggest cyber-disasters. It’s a specific type of malware locking the device from its user. To access his own data, the user needs a key, which can be provided only by the hacker. The user is blackmailed until he pays the ransom. The ransomware can be injected into your device through phishing e-mails, pop-ups, fake sites. 5. E-skimming You have probably heard about skimming devices used to hack ATMs. Now the cybercriminals use a more sophisticated technique called e-skimming: they insert a skimming code in your e-commerce site, right into the pages processing the payment cards. Thus, they steal the card data in real-time, while the user is paying. To shop or not to shop? E-commerce cybercrimes are not limited to the aforementioned list. Does this mean that shopping online is always dangerous, and you should avoid it? Of course not! Shopping online is very comfortable, practical, and sometimes inevitable. Good news: you can make it ! completely safe Secure online shopping is a . Both the organizations and the consumers must make some steps towards a safe environment. mutual responsibility Here are some conclusions and steps a regular user can do to avoid cyber-dangers while : shopping online Shop only on trusted sites Update your computer s OS and Antiviru Use strong , change them from time to time, don’t save them on pcs and websites and vary them from site to site passwords Don’t open e-mails (i.e. promising you an award), sites, pop-ups, payment pages suspicious What an can do to avoid data breaches? online shop owner Invest in your employees’ : everyone should be aware and responsible education Keep your e-commerce site, devices and systems updated Take additional security steps during , when cyber-criminals become especially active! holiday shopping seasons Secure your site with HTTPS your data Back up Keep investing in cyber-security to protect your company’s and consumers’ data at maximum. Buying cybersecurity software is not enough. Remember that today any site can be breached, any data can be stolen. So think about ! making it unreadable and useless to cybercriminals

E-commerce Cybersecurity - Enhancing Data Protection in 2021

Billions of dollars in venture capital have poured into direct-to-consumer (D2C) brands over the past ten years, funding hundreds of upstart brands challenging the incumbents in product category. These brands, once by investors, are now raising multi-million dollar rounds pre-launch and recruiting top talent. nearly every ignored There’s no question that there’s hype around the D2C space, but we’ve seen far less interest in the infrastructure that allows these brands to scale. D2C brands uniquely own every step of their production and distribution process — from product design to packaging to marketing to fulfillment. New brands can struggle to put all these pieces together, while established brands face challenges like figuring out how to serve an international audience and maintaining growth in a capital-efficient way. We see a huge opportunity for the rise of tools that better serve these brands, and we’re excited to share our research on companies in this space and areas where we hope to see further development. If you’re working on something in the D2C infrastructure space, please email us at twins@crv.com — we’d love to talk to you! Playbook for New Brands We’ve compiled a list of the tools we see D2C brands using today, based on our conversations with dozens of brands and data from Siftery . Product Design & Development Most brands handle design and development of products in-house, sometimes with heavy input from customers, which Glossier (and more brands are exploring via Instagram Stories and surveys). The development process typically involves finding a factory or manufacturing partner with expertise in the space, and working closely with them. famously does However, we’ve found a few startups that are aiming to use tech in the product development process. and offer this for 3D-printed products, while and do the same for hardware. and all focus on fashion, doing smaller production runs with quick turnaround times. (customers include , and ), and ( ) both work across industries. Voodoo Manufacturing Shapeways Shape Prototype , Kickr Design , Seeed Studios CALA , IndieSource , Nineteenth Amendment Parcel Supply Birchbox, S’well Blue Apron PCH International Walker and Company, Fitbit, Blaze Manufacturing Many brands find manufacturers through their personal networks or referrals, but there are also established marketplaces that connect companies with domestic and international factories — , , , , and are a few examples. Some of the newer players cater to younger brands who are concerned about eco-friendliness, quality control, and social responsibility — ( , ), , , and (fashion-specific) are a few examples. MFG.com Kompass Alibaba IndiaMart ThomasNet Anvyl LOLA, Hims, S’well Native Sourcify Maker’s Row Sewport Financing There’s a number of firms that focus on consumer brands, many of which combine an investment with incubation or branding, advertising, or other support. is a major player in this space — the company offers as well as financing options, as is is a newer firm that focuses on brands doing $1M+ in annual revenue. CircleUp credit equity Indie.vc . Assembled Brands Other funds include , , , , and invest exclusively in food and beverage. , , and (beauty-focused) all serve as accelerators that combine funding with agency-like support. Outroll Ventures Unilever Ventures Touchdown Ventures Beechwood Capital Simon Capital , Elizabeth Street , VTF Capital *. AccelFoods , First Beverage Group , Distill Ventures Bullish The Brandery SKU , XRC Labs , Sephora Accelerate and remain a popular way to fund an initial production run, as well as equity crowdfunding platforms like , , , and . Along with traditional credit options like small business loans (also offered via startups like , , and ), there are also a few new credit options catered directly to D2C brands. These include , (working capital), and (marketing funding). does the same via merchant cash advances and loans. Kickstarter Indiegogo SeedInvest Crowdfunder Republic Wefunder Fundbox SnapCap Kickfurther CircleUp Credit Advisors Dwight Funding Clearbanc Shopify Capital Inventory Management Inventory management and forecasting are crucial for young brands that are short on cash and storage space. Forecasting is complicated by the fact that these brands can have “viral” moments that are difficult to predict and lead to long waitlists. Like most other software categories, there are existing inventory management solutions (Netsuite, Workday, SAP, etc.). However, the pricing, features, and implementation often don’t work for early-stage, high growth companies. A few startup platforms that cater to D2C brands — ( , ) and ( ). Other options that are popular amongst e-commerce more broadly are , , , , , , and . Fuse Inventory Glossier, LOLA, MeUndies Snowe Stitch Labs Brooklinen, Thinx TradeGecko Finale Lightspeed Retail Ops Unleashed Veeqo Brightpearl Branding Many brands do this in-house, especially if they have a designer on the team or can easily consult with an expert. , and are a few of the more popular tools for managing brand assets, and some also include tools or design space for generating these assets. It’s also common to hire a freelancer on a platform like , , , , , and . Canva , Brandfolder , Bynder , Outfit , OpenBrand Frontify 99Designs , DesignCrowd Dribbble Behance Upwork Toptal Fiverr A number of design agencies have risen to fame for their work with top D2C brands — ( )and ( ) are two of the most popular. Others include ( ) ( ) ( ), ( ), ( ), ( ), and ( . Red Antler Casper, Allbirds, Keeps, Brandless Gin Lane Hims, Sweetgreen, Harry’s, Stadium Goods Pentagram Buffy, Tender Greens, The Wing , Condensed Pair Eyewear, Num Num, Keepers , Partners & Spade Allbirds, Flamingo, Warby Parker , M. Gemi Collins Heyday, Nourish, Archer Farms Motto Even, Keetsa, Crown & Buckle Circus Maximus Roman, Bombfell High Tide Warby Parker, Casper, LOLA) Marketing Like traditional e-commerce companies, many D2C brands devote most of their marketing dollars to Facebook, Instagram, and Google. There is a sea of marketing software tools for new brands to manage this spend. To get a sense of what both early and late-stage brands are using, we used to check out the marketing stack for the top 15 most well-funded D2C brands, as well as the 29 brands who raised a VC seed round last year. We’ve included below platforms that were used by five or more brands out of this group. Siftery Most of the brands we surveyed used at least one option in each of the sub-categories above, making it by far the most complex area of the stack we examined. Seed-stage brands were more likely to experiment with similarly early-stage marketing platforms (perhaps because they are the most hungry to acquire customers!)—particularly in categories that go beyond the basics like referrals, re-targeting, and conversion. We know many brands are also using tools to schedule and post content to social media, which wouldn’t show up in a Siftery stack. Examples include (Instagram scheduler), (Twitter scheduler) as well as cross-platform schedulers and — which we’ve included in the “Customer Success” map below as they also support customer service. Later Tweetdeck Sprout Social Buffer Customer Success Similar to marketing, many of the customer success platforms built for traditional e-commerce seem to be working for D2C brands. Unlike marketing, however, we found most D2C brands used a fairly tight set of customer success solutions — most commonly a live chat tool ( and were the top two), an email/ticketing system ( and —which all also offer social support) and a social-focused service platform ( and ) Olark Zendesk Zendesk , Kustomer , Gorgias , Conversocial Sprout . We’ve also included customer review systems in the “Customer Success” category — though they could arguably be considered “Marketing” tools as well. and were by far the most-used platforms in this category. Yotpo Okendo Commerce & Payments Almost all of the seed-stage D2C brands we surveyed used either or as their commerce platform, while later-stage brands commonly used to process payments. About half of the 43 brands we looked at also used one or more of the following: and is another newer option that handles checkout, analytics, and fraud protection. Shopify Magento Stripe Google Wallet , Paypal , Apple Pay , Amazon Payments . Bolt Payments Outside of the core payment processing functionality, almost all of the subscription-based D2C brands we looked at used for their billing, and several of the later-stage brands used a fraud protection solution like and Brands with higher-priced items also often implements solutions to allow customers to pay over time — with platforms like , , and . ReCharge Payments Riskified Signifiyd . Affirm Klarna Quadpay Fulfillment, Shipping, & Returns We’ve discussed Inventory Management above, so in this category we‘ve focused on packaging, shipping and fulfillment, and returns. In packaging, arguably the most well-known brand is ( ) but many earlier-stage brands that struggle with Lumi’s prices and minimums turn to and also have quite a bit of traction in this space. Lumi Parachute, MeUndies, Rockets of Awesome Packlane . Arka Pakible On the shipping side, ( ), , and are three of the most popular options, though some brands ship directly via USPS or FedEx. helps companies offer same-day delivery. , , , , , and are other popular 3PL and fulfillment options for D2C brands and e-commerce more broadly. Shippo MeUndies, Ipsy, Hims ShipStation ShipBob Darkstore Flexe ShipHero RubyHas Quiet Logistics ID Logistics Dotcom Distribution , Fosdick and are focused on international shipping, which remains a huge problem for brands of all sizes. Brands use platforms like and to help customers track orders. On the returns side, and (sometimes used together!) are the two most popular options we found, with and as other common options. Passport Shipping , Flow , FlavorCloud Arrive , Newgistics , AfterShip , Narvar Returnly Happy Returns ReturnMagic Narvar Brick & Mortar Space As we’ve , D2C brands are increasingly experimenting with physical retail space — usually via pop-ups or by renting shelf space in their early days, and then setting up permanent stores further down the line. The last few years has seen the birth of many startups that aim to help brands tackle this without having to hire a broker or realtor. written about before In the shelf or display space category, some of the biggest contenders are (with an online marketplace and three stores in NYC), (focused on consumer hardware) (in Edmonton and Minneapolis), (Plano, TX), (NoHo in NYC), and (SF). On the short-term or pop-up side, and all offer solutions. assists with longer-term retail placements alongside (formerly thisopenspace), a CRV portfolio company that also helps smaller brands find short-term and shelf space. Bulletin b8ta Fourpost Neighborhood Goods Showfields Re:Store Storefront , AppearHere , Go-PopUp Leap Uppercase (customers include and ), also helps D2C brands with retail — but with a focus on connecting companies to vendors and service providers who can manage store operations. This includes maintenance, events, dry cleaning, and other custom services that brands may not have the time or expertise to set up themselves. Worksmith Outdoor Voices, Casper, Bonobos, Stance What’s Left To Build? There are several areas where we see considerable room for improvement on existing solutions, as well as other categories that have yet to be tackled. Here are just a few areas of opportunity we are particularly excited about: CACs continue to rise on Instagram and Facebook — though consumers remain excited to try new brands, it’s hard to cut through the noise on social feeds. Many brands are turning to cross-promotions with other brands to lower acquisition costs, and sites like have popped up to aggregate brands. We’ve also seen new entrants focus on dominating specific product categories (e.g. in beauty) or distribution via friend referrals (e.g. ). We’re excited to see more scalable, software-based solutions for brands to reach the right customer. Discovery. Newfound Supergreat MASSE It’s surprising how hard it is for brands large and small to ship internationally — just take a look at the variety of products on ! Because D2C brands advertise heavily on social media, where content can be shared globally (even if ads target a domestic audience), it’s especially important to be able to serve these potential customers. We’re very excited about starting to tackle this problem, and are looking forward to seeing these solutions expand to more brands. International Shipping. Grabr Passport , FlavorCloud , Flow We continue to see D2C brands struggle to finance their inventory, particularly given that they often can’t negotiate favorable payment terms with manufacturers early on. This results in many companies raising more venture funding (and taking more dilution) than they need to scale. , , , and have been making progress in providing working capital to brands, and we’re interested in watching how this space evolves. Financing. Clearbanc Assembled Brands Dwight Funding CircleUp As shown by the many categories above, brands have to piece together and manage a huge amount of different resources just to get a first product out the door. This can be especially overwhelming for small teams running on limited capital, who don’t have partnerships or contracts with larger retailers. It will likely take more time and capital in the space, but we’d be excited to see something closer to an end-to-end solution (even just for one category!) that simplifies brand operations. is one example — as well as serving as a subscription platform for brands like , , and , they also offer fulfillment, customer service, and business intelligence. Resource Aggregation. OceanX Ladder Cora Seed Thanks for reading! If you’re working on something in this space, please email us at twins@crv.com — we’d love to hear from you! Like this post? to help more people see our story, and share it with your friends! Clap for it Interested in reading more content from us? You can subscribe to our weekly newsletter, , for more insights on millennial and Gen Z trends: Accelerated https://accelerated.carrd.co/ Thank you to Saar Gur for his help with this post.

D2C 2.0: The Rise of Infrastructure

Brickken was co-founded in 2020 by Edwin Mata Navarro and four others to help companies tokenize their assets through fractional ownership. In a recent interview with an AIBC reporter Jean Michel Azzopardi, Edwin stated that Brickken’s goal is to cut off the middleman and open up access to liquidity in the token economy. Three years since its founding, Brickken has continued to build strategic partnerships with various law firms across the world in a bid to streamline its services and ensure regulatory compliance with securities laws. In this interview, Edwin recently told Olayimika Oyebanji, Hackernoon award-winning Contributor, that tokenization, mass adoption, and web 3 legal compliance are some of the key objectives of Brickken. 1. Thanks for accepting my request for an interview. I would like to start with the question of whether tokenization is the next big thing in the crypto industry. Why are you bullish on it despite the downturn in the crypto market? I am bullish on tokenization in the crypto industry because major financial institutions and brands are adopting the technology. Despite the downturn in the crypto market in 2022, companies like JP Morgan, Hamilton Lane, WisdomTree Asset Management, KKR, and the Monetary Authority of Singapore are beginning to use tokenization for asset management. Additionally, Goldman Sachs has recently implemented their own tokenization infrastructure, and consulting firms such as Deloitte, EY, BCG, and McKinsey predicts that the tokenization market will reach $16 trillion by 2030. The data clearly shows that the tokenization market is gaining traction and becoming a key player in the blockchain industry. 2. Tell me about the co-founding of Brickken? What are its goals? Brickken, along with its co-founders, aimed to make real estate accessible to retail investors by fractionalizing it. We began implementing this concept by blending securities, crowdfunding, illiquid assets, and easy access to provide attractive returns. However, as we faced challenges and market changes, the vision evolved into the current Brickken, a token offering and management platform that offers blockchain-agnostic infrastructure for companies to mint, offer, and manage their utility, security, and non-fungible tokens (NFTs), enabling companies to easily manage their digital assets and participate in the token economy. 3. I have read many pitch decks on real estate tokenization. What I am yet to see is a true instance where fractional ownership is set in motion. What, in your opinion, are the obstacles to achieving the end goal of tokenization? Many companies have struggled to make tokenization successful due to a lack of understanding of the legal implications of issuing securities and the full capabilities of blockchain technology. Additionally, they have not effectively leveraged the decentralized nature of blockchain and integrated the best features of both web2 and web3. To effectively implement tokenization, it is crucial to understand the interplay between security markets, crowdfunding, and blockchain technology, and how they can be blended to achieve optimal efficiency and value. The high entry point and lack of innovation, not only from a technical perspective but a procedural one are why tokenization is often viewed as a theoretical concept rather than a practical application. 4. How can they be surmounted? Lack of expertise in the matters around tokenization, and in the processes of token minting, offering and management of digital assets. 5. How does Brickken operate? Our dApp provides a comprehensive set of tools for managing the token life cycle, from minting to offering and management of the token issued and funds raised. Features include KYCs, cap tables, voting polls, real-time analytics, a custom sale web page generator, token distribution panels, and open API integration with other dApps and protocols. Our platform streamlines the tokenization process and enables companies to fully utilize the benefits of blockchain technology. As a decentralized application, we do not act as intermediaries, allowing companies to operate on their own terms. 7. What are its achievements in the three years of its founding? I would have to choose the following, in 2021 we got accepted in[to] Startupbootcamp Program, one of the most important world acceleration programs, we obtained the NEOTEC Grant, a top Spanish technology startup grant financed by the European Investment Fund ("EIF"), and we entered the Financial Sandbox in Spain for testing a security token exchange market. In 2022, we raised two million euros and grew the team to 25 members, where 12 members of the team are lecturers in universities and business schools, and many have become speakers and given commentaries and interviews to news outlets. 8. The crypto industry has been heavily criticized for the lack of a viable framework to protect investors. What do you think should be done to regain investors' confidence? This is a complex issue and companies need to ensure that they are following the applicable laws and regulations. It is important for them to have internal compliance mechanisms in place to ensure that they are following all applicable laws and regulations, as well as to make sure that they are fulfilling their obligations to their investors. Additionally, it is also important for companies to keep up with changes to laws and regulations to stay compliant, which many are currently in the process of being updated due to the 2022 events that happened in the crypto space. Investors can only regain their confidence over time, through companies prioritizing compliance over maximum profit. 9. What is your prediction for crypto in 2023? There is a need for increased regulation in the Web3 space to provide more stability, as more institutions get involved and banks start testing their Central Bank Digital Currencies (CBDCs). Despite the efforts of many to drive mass adoption, the markets continue to be dominated by large corporations and governments. 10. Any parting words? Blockchain is an unstoppable force, and it's only a matter of time before everyone joins Web3. Reports are confirming this trend is here to stay!

“We Are Cutting Off The Middleman” - Brickken Co-Founder and CEO Edwin Mata Navarro on Tokenization

El Salvador’s President Nayib Bukele has hinted at a “rent your own volcano” program as a way of harnessing geothermal energy to power Bitcoin mining. The revelation came after an X user shared that El Salvador has thus far mined 474 Bitcoin, worth about $46 million (at the time of writing), with the assistance of volcanic geothermal power. Bukele responded to the post, saying: “And with 170 volcanoes … A ‘rent your own volcano to mine Bitcoin’ program might actually make sense.” Data published by Spotonchain shows that the Salvadoran government currently holds over 5,900 Bitcoin, which is worth about $581.399 million at the time of writing. On November 1, this figure was about $410 million. In 2021, El Salvador became the first country to accept Bitcoin as legal tender. Bitcoin ATMs emerged across the country, and the government announced plans to construct a “Bitcoin City.” The city was to be built at the base of the Conchagua volcano in the south-eastern region of La Unión, which Bukele said would include “Residential areas, commercial areas, services, museums, entertainment, bars, restaurants, airport, port, rail – everything devoted to Bitcoin.” However, the project has faced several delays. Bitcoin has also faced limited popularity in the country, where 26.6% of the population was living below the national poverty line in 2022. In 2023, a survey by El Salvador’s Central American University revealed that 71.1% of Salvadorans felt that Bitcoin had done “nothing” to improve families’ financial situations, while a survey published in October 2024 by the San Salvador-based Francisco Gavidia University found that 92% of Salvadorans do not make transactions with Bitcoin. While some view geothermal energy as a sustainable option for Bitcoin mining, others are more skeptical. Álvaro Trigueros, director of the Department of Economic Studies of the Salvadoran Foundation for Economic and Social Development (FUSADES), told Deutsche Welle in 2021: “According to the installed energy capacity in El Salvador, national electricity production is in deficit. 19.9 percent of the energy consumed has to be imported.” He added: “Since the country is not self-sufficient, if Bitcoin were mined in El Salvador, it would cause an excessive increase in electricity demand and the country would be forced to import more.” That same year, Ricardo Navarro, the head of environmental NGO Salvadoran Center for Appropriate Technology (CESTA) told POLITICO: “I am under the impression that Bukele doesn’t really understand what is going on in the energy situation,” explaining that it was unlikely that Bitcoin miners would be able to fulfill their electricity requirements by depending on volcanoes alone. He added that geothermal Bitcoin mining would “certainly” complicate demand. However, Erick Chacon, the president of the Salvadoran Financial Technology Association (ASAFINTECH) told Latin America Reports that the prospect of a “rent your own volcano” scheme “demonstrates a creative and disruptive vision that has characterized El Salvador as a global leader in the adoption of emerging technologies.” Chacon explained that, while such ideas “may initially seem unusual,” they “generate conversation, attract international attention, and position the country as an attractive space for technological investment.” Chacon added that, before this idea can be realized, “technical, economic, and environmental feasibility studies must be conducted” in order to ensure that the country’s resources are used “efficiently, sustainably, and in line with national and international regulations.” ASAFINTECH, according to Chacon, is “convinced that debate and constructive analysis are essential for El Salvador to continue leading the region in financial technology and Bitcoin adoption.” Alastair Caithness, a Bitcoin Mining Consultant and host of the Boom! It’s on the Blockchain podcast, explained to Latin America Reports that El Salvador’s use of geothermal energy to mine Bitcoin offers “both advantages and disadvantages.” Caithness stated that “geothermal energy is considered sustainable, reliable, and environmentally friendly, producing minimal greenhouse gas emissions,” adding: “Unlike wind or solar, geothermal energy is available around the clock, unaffected by weather and climatic changes.” However, Caithness noted: “The use of geothermal energy for Bitcoin mining is geographically limited to regions with accessible geothermal heat, such as volcanic areas or tectonic plate boundaries,” which “restricts its widespread use.” Additionally, he said that the transportation of geothermal energy to remote mining sites can be costly, “limiting large-scale adoption in areas without geothermal resources.” In spite of these challenges, Caithness believes “the growing demand for energy in crypto mining, data centers, and AI presents a significant opportunity for El Salvador’s geothermal energy,” positioning the country “as a key player in the future of Bitcoin mining and the broader crypto energy landscape.” Farbod Esmaeilion, a senior researcher at the K. N. Toosi University of Technology in Iran and co-author of a feasibility study on the production of Bitcoin with geothermal energy, told Latin America Reports that geothermal energy is the “most sustainable” way of mining Bitcoin. However, he noted that there must be “environmental considerations” before such schemes are undertaken. Among these considerations, according to Esmaeilion, is the possibility of water pollution, which can occur during the construction of geothermal wells. He said that there is a risk that “materials and detrite” enter nearby water sources, including drinking water, which governments must manage before commencing large-scale geothermal Bitcoin mining projects. Another challenge posed by geothermal Bitcoin mining is that of identifying sites where geothermal plants can be constructed. Esmaeilion explained that governments must find the “best and most optimal locations” for these undertakings, making sure that any potential sites are at the necessary temperature for Bitcoin mining. He added: “Half of this story is beneath the ground.” Esmaeilion also said that governments must make “economic considerations,” given that a “high amount of investments” are needed before projects such as Bukele’s “rent your own volcano” scheme can become viable, particularly given that geothermal energy is “much more expensive” than wind or solar alternatives. Although Bukele has repeatedly emphasized his commitment to cryptocurrencies, it remains to be seen exactly how much more money his government is willing and able to invest in geothermal Bitcoin mining. However, this could change if the value of the country’s crypto investments continues to rise as it has done over recent months. Elizabeth Bratton, Reporter, Latin America Reports El Salvador’s President Nayib Bukele has hinted at a “rent your own volcano” program as a way of harnessing geothermal energy to power Bitcoin mining. The revelation came after an X user shared that El Salvador has thus far mined 474 Bitcoin , worth about $46 million (at the time of writing), with the assistance of volcanic geothermal power. Bukele responded to the post, saying : “And with 170 volcanoes … A ‘rent your own volcano to mine Bitcoin’ program might actually make sense.” X shared Bitcoin saying Data published by Spotonchain shows that the Salvadoran government currently holds over 5,900 Bitcoin, which is worth about $581.399 million at the time of writing. On November 1, this figure was about $410 million. Spotonchain In 2021, El Salvador became the first country to accept Bitcoin as legal tender. Bitcoin ATMs emerged across the country, and the government announced plans to construct a “Bitcoin City.” The city was to be built at the base of the Conchagua volcano in the south-eastern region of La Unión, which Bukele said would include “Residential areas, commercial areas, services, museums, entertainment, bars, restaurants, airport, port, rail – everything devoted to Bitcoin.” However, the project has faced several delays. said project Bitcoin has also faced limited popularity in the country, where 26.6% of the population was living below the national poverty line in 2022. In 2023, a survey by El Salvador’s Central American University revealed that 71.1% of Salvadorans felt that Bitcoin had done “nothing” to improve families’ financial situations, while a survey published in October 2024 by the San Salvador-based Francisco Gavidia University found that 92% of Salvadorans do not make transactions with Bitcoin. 26.6% 71.1% 92% While some view geothermal energy as a sustainable option for Bitcoin mining, others are more skeptical. some view Álvaro Trigueros, director of the Department of Economic Studies of the Salvadoran Foundation for Economic and Social Development (FUSADES), told Deutsche Welle in 2021: “According to the installed energy capacity in El Salvador, national electricity production is in deficit. 19.9 percent of the energy consumed has to be imported.” He added: “Since the country is not self-sufficient, if Bitcoin were mined in El Salvador, it would cause an excessive increase in electricity demand and the country would be forced to import more.” Deutsche Welle Deutsche Welle That same year, Ricardo Navarro, the head of environmental NGO Salvadoran Center for Appropriate Technology (CESTA) told POLITICO : “I am under the impression that Bukele doesn’t really understand what is going on in the energy situation,” explaining that it was unlikely that Bitcoin miners would be able to fulfill their electricity requirements by depending on volcanoes alone. He added that geothermal Bitcoin mining would “certainly” complicate demand. POLITICO POLITICO However, Erick Chacon , the president of the Salvadoran Financial Technology Association ( ASAFINTECH ) told Latin America Reports that the prospect of a “rent your own volcano” scheme “demonstrates a creative and disruptive vision that has characterized El Salvador as a global leader in the adoption of emerging technologies.” Chacon explained that, while such ideas “may initially seem unusual,” they “generate conversation, attract international attention, and position the country as an attractive space for technological investment.” Erick Chacon ASAFINTECH Latin America Reports Chacon added that, before this idea can be realized, “technical, economic, and environmental feasibility studies must be conducted” in order to ensure that the country’s resources are used “efficiently, sustainably, and in line with national and international regulations.” ASAFINTECH, according to Chacon, is “convinced that debate and constructive analysis are essential for El Salvador to continue leading the region in financial technology and Bitcoin adoption.” Alastair Caithness , a Bitcoin Mining Consultant and host of the Boom! It’s on the Blockchain podcast, explained to Latin America Reports that El Salvador’s use of geothermal energy to mine Bitcoin offers “both advantages and disadvantages.” Caithness stated that “geothermal energy is considered sustainable, reliable, and environmentally friendly, producing minimal greenhouse gas emissions,” adding: “Unlike wind or solar, geothermal energy is available around the clock, unaffected by weather and climatic changes.” Alastair Caithness Boom! It’s on the Blockchain Latin America Reports However, Caithness noted: “The use of geothermal energy for Bitcoin mining is geographically limited to regions with accessible geothermal heat, such as volcanic areas or tectonic plate boundaries,” which “restricts its widespread use.” Additionally, he said that the transportation of geothermal energy to remote mining sites can be costly, “limiting large-scale adoption in areas without geothermal resources.” In spite of these challenges, Caithness believes “the growing demand for energy in crypto mining, data centers, and AI presents a significant opportunity for El Salvador’s geothermal energy,” positioning the country “as a key player in the future of Bitcoin mining and the broader crypto energy landscape.” Farbod Esmaeilion , a senior researcher at the K. N. Toosi University of Technology in Iran and co-author of a feasibility study on the production of Bitcoin with geothermal energy, told Latin America Reports that geothermal energy is the “most sustainable” way of mining Bitcoin. Farbod Esmaeilion feasibility study Latin America Reports However, he noted that there must be “environmental considerations” before such schemes are undertaken. Among these considerations, according to Esmaeilion, is the possibility of water pollution, which can occur during the construction of geothermal wells. He said that there is a risk that “materials and detrite” enter nearby water sources, including drinking water, which governments must manage before commencing large-scale geothermal Bitcoin mining projects. Another challenge posed by geothermal Bitcoin mining is that of identifying sites where geothermal plants can be constructed. Esmaeilion explained that governments must find the “best and most optimal locations” for these undertakings, making sure that any potential sites are at the necessary temperature for Bitcoin mining. He added: “Half of this story is beneath the ground.” Esmaeilion also said that governments must make “economic considerations,” given that a “high amount of investments” are needed before projects such as Bukele’s “rent your own volcano” scheme can become viable, particularly given that geothermal energy is “much more expensive” than wind or solar alternatives. Although Bukele has repeatedly emphasized his commitment to cryptocurrencies, it remains to be seen exactly how much more money his government is willing and able to invest in geothermal Bitcoin mining. However, this could change if the value of the country’s crypto investments continues to rise as it has done over recent months. Elizabeth Bratton, Reporter, Latin America Reports Elizabeth Bratton , Reporter, Latin America Reports Elizabeth Bratton

El Salvador's President Teases “Rent Your Own Volcano” Bitcoin Mining Plan

Прэзідэнт Сальвадора дражніць план здабычы біткойнаў «Арэнда ўласнага вулкана».

Ο Πρόεδρος του Ελ Σαλβαδόρ πειράζει το σχέδιο εξόρυξης Bitcoin "Rent Your Own Volcano".

El presidente de El Salvador se burla del plan de minería de bitcoins “Alquile su propio volcán”

Predsjednik El Salvadora zadirkuje plan rudarenja Bitcoina “Iznajmite vlastiti vulkan”.

エルサルバドル大統領が「火山を借りる」ビットコイン採掘計画をほのめかす

Salvadoro prezidentas erzina „Nuomokite savo ugnikalnį“ Bitcoin kasybos planą

Președintele El Salvador tachinează „Închiriați-vă propriul vulcan” planul de minerit Bitcoin

එල් සැල්වදෝරයේ ජනාධිපති "ඔබේම ගිනි කන්දක් කුලියට ගන්න" Bitcoin පතල් සැලැස්ම විහිළු කරයි

Mutungamiri weEl Salvador Anoseka "Rent Your Own Volcano" Bitcoin Mining Plan

Presidente wa El Salvador U hlekula Pulani ya Mugodi wa Bitcoin leyi nge “Rhirela Vholkheno ya Wena”.

ایل سلواڈور کے صدر نے بٹ کوائن مائننگ پلان کو "اپنا خود کا آتش فشاں کرایہ پر لے لیا"

Umongameli wase-El Salvador uhlekisa “Ngerente eyakho iVolcano” isiCwangciso seMigodi yeBitcoin

Load Balancing For High Performance Computing
Using Quantum Annealing: Conclusions and Outlook

ChatGPT in Classrooms: Opportunities, Challenges, and Ethical Considerations

The European Union (EU) took the early lead in providing a global benchmark for crypto regulation with the approval of the Markets In Crypto-Assets (MiCA) legislation in June 2023. Meanwhile, opinions are still divided over the suitability of MiCA with the Travel Rule dominating the conversation. Although there is broad agreement on the need for proactive crypto regulation, the challenge lies in finding the right balance between fostering innovation and ensuring adequate regulatory oversight. By establishing the European Blockchain Regulatory Sandbox, the EU aims to bridge the gap between regulating blockchain technology and mitigating the risks associated with it. The European Blockchain Regulatory Sandbox, an initiative of the European Commission (the brain behind the European Blockchain Services Infrastructure), reflects the EU’s commitment toward engaging with critical stakeholders and innovators in the blockchain industry driven by the need to promote innovation in Distributed Ledger Technologies (DLT). In this article, we explore the European blockchain Regulatory Sandbox, the classification of RWA under MiCA, and with reference to the EU selection of Brickken, a leading EU-based real world asset(RWA) tokenization company, as a participant in the regulatory sandbox, which began in 2023. The European Blockchain Regulatory Sandbox Explained Crypto regulatory sandboxes are still very much the platforms for regulators to engage democratically with the crypto industry by allowing crypto-native businesses to test their products, services and models in a transparent and controlled environment. The European blockchain regulatory sandbox was launched by the European Commission in 2023 as a robust and controlled platform to test and develop blockchain-based solutions for the EU crypto markets, thereby allowing participants from various blockchain sectors to experiment with real-world scenarios while engaging in an open dialogue with the EU regulators. With the Markets In Crypto-Assets (MiCA) regulation, the comprehensive framework for crypto-assets within the EU, becoming fully operational by December 2024, the regulatory sandbox serves to enable EU-based digital assets companies to not only test their products and services but to also measure their level of compliance with the extant legislation as. Brickken, a Barcelona-based RWA tokenization platform, was recently selected to explore this collaborative approach to test its RWA products and solutions. The keypoint about the EU regulatory sandbox is that it is ultimately designed to foster innovation while mitigating potential risks associated with blockchain technology in line with the framework established by MiCA. The Sandbox Implications For MiCA The EU is indubitably a leader in crypto regulation, outpacing the US in the provision of regulatory clarity for the crypto industry. The European blockchain regulatory sandbox reinforces the EU’s leading position as it aims to provide legal certainty, enhance consumer protection, and foster a more stable and secure crypto market. As a launchpad for responsible and compliant blockchain solutions within the EU, its has several implications for MiCA including: Enhancing Crypto Compliance: Companies or participants are offered a platform to test their solutions and channel their toward ensuring a full compliance with the rules outlined in MiCA, such as token issuance, consumer protection, data protection, etc. Enhancing The Implementation of MiCA: The regulatory sandbox can shape the implementation of MiCA, enabling regulators to strike a balance between fostering innovation and mitigating risks and highlighting the need for a sustained collaboration between regulators and crypto businesses. Tokenizing Real-World Assets in a MiCA-Compliant Manner The recent selection of Brickken as a participant in the EU regulatory sandbox brings us to examine MiCA’s provisions on the tokenization of real-world assets (RWAs), focusing on its mission to ensure a responsible and compliant tokenization of real world assets in the EU. MiCA’s established rules on crypto assets reflect the EU’s intention to regulate an industry with a diverse service offerings ranging from real estate to intellectual property to artwork. (RWAs consisting of traditionally illiquid assets hold a lot of potential and its Total Addressable Market (TAM) is worth billions of dollars). RWAs are classified as a class of crypto tokens on the blockchain, representing a fractionalized ownership of real estate, artwork and traditionally illiquid assets. Depending on their characteristics, these tokens may be categorized as one of the three types of crypto assets recognised by MiCA: Asset-Referenced Tokens (“ART”), Electronic Money Tokens (“EMT”), and Other Tokens(ie utility token). Participating in the EU regulatory sandbox will enable EU-based RWA-focused companies such as Brickken to gain more insights into the MiCA’s regulatory compliance requirements on token issuance, investor protection and other mandatory rules, highlighting the potential of tokenization technology, especially in a MiCA-regulated environment. Most especially, it can serve as a case study for compliant and innovative RWA companies in the EU. According to Brickken CEO Edwin Mata Navarro, “this opportunity validates our innovative approach to asset tokenization and also allows us to collaborate with regulators and other industry leaders to build a stronger and more reliable blockchain ecosystem. The experience and knowledge we gain in this regulatory sandbox will be valuable for our future growth and success”. Conclusion The EU's commitment to promoting responsible blockchain innovation is evident in the establishment of the EBSI sandbox, which seeks to foster collaboration between key players in the blockchain industry and the EU regulators, especially with regards to the Markets In Crypto Assets(MiCA)regulation. As a platform, it highlights the need for a supportive environment for the growth of blockchain innovation, and it serves as a medium to unlock the full potential of blockchain technology across various sectors within the EU running from financial services, supply chain management to defense, and healthcare. Finally, it presents an opportunity for EU-based RWA-focused companies to work towards becoming MiCA-compliant in their services and operations across the EU. This signifies that as more innovative companies participate in the sandbox and collaborate with regulators, the future of tokenization technology seamlessly integrating into the European economy is guaranteed to create new opportunities for businesses, investors, and the citizens. The European Union (EU ) took the early lead in providing a global benchmark for crypto regulation with the approval of the Markets In Crypto-Assets (MiCA) legislation in June 2023. Meanwhile, opinions are still divided over the suitability of MiCA with the Travel Rule dominating the conversation. The European Union (EU Although there is broad agreement on the need for proactive crypto regulation, the challenge lies in finding the right balance between fostering innovation and ensuring adequate regulatory oversight. By establishing the European Blockchain Regulatory Sandbox, the EU aims to bridge the gap between regulating blockchain technology and mitigating the risks associated with it. The European Blockchain Regulatory Sandbox , an initiative of the European Commission (the brain behind the European Blockchain Services Infrastructure), reflects the EU’s commitment toward engaging with critical stakeholders and innovators in the blockchain industry driven by the need to promote innovation in Distributed Ledger Technologies (DLT). The European Blockchain Regulatory Sandbox initiative initiative In this article, we explore the European blockchain Regulatory Sandbox, the classification of RWA under MiCA, and with reference to the EU selection of Brickken, a leading EU-based real world asset(RWA) tokenization company, as a participant in the regulatory sandbox, which began in 2023. MiCA, Brickken, a leading EU-based real world asset(RWA) tokenization company, The European Blockchain Regulatory Sandbox Explained Crypto regulatory sandboxes are still very much the platforms for regulators to engage democratically with the crypto industry by allowing crypto-native businesses to test their products, services and models in a transparent and controlled environment. The European blockchain regulatory sandbox was launched by the European Commission in 2023 as a robust and controlled platform to test and develop blockchain-based solutions for the EU crypto markets, thereby allowing participants from various blockchain sectors to experiment with real-world scenarios while engaging in an open dialogue with the EU regulators. With the Markets In Crypto-Assets (MiCA) regulation, the comprehensive framework for crypto-assets within the EU, becoming fully operational by December 2024, the regulatory sandbox serves to enable EU-based digital assets companies to not only test their products and services but to also measure their level of compliance with the extant legislation as. Brickken , a Barcelona-based RWA tokenization platform, was recently selected to explore this collaborative approach to test its RWA products and solutions. The keypoint about the EU regulatory sandbox is that it is ultimately designed to foster innovation while mitigating potential risks associated with blockchain technology in line with the framework established by MiCA. Brickken The Sandbox Implications For MiCA The EU is indubitably a leader in crypto regulation, outpacing the US in the provision of regulatory clarity for the crypto industry. The European blockchain regulatory sandbox reinforces the EU’s leading position as it aims to provide legal certainty, enhance consumer protection, and foster a more stable and secure crypto market. As a launchpad for responsible and compliant blockchain solutions within the EU, its has several implications for MiCA including: Enhancing Crypto Compliance : Companies or participants are offered a platform to test their solutions and channel their toward ensuring a full compliance with the rules outlined in MiCA, such as token issuance, consumer protection, data protection, etc. Enhancing Crypto Compliance Enhancing The Implementation of MiCA : The regulatory sandbox can shape the implementation of MiCA, enabling regulators to strike a balance between fostering innovation and mitigating risks and highlighting the need for a sustained collaboration between regulators and crypto businesses. Enhancing The Implementation of MiCA Tokenizing Real-World Assets in a MiCA-Compliant Manner The recent selection of Brickken as a participant in the EU regulatory sandbox brings us to examine MiCA’s provisions on the tokenization of real-world assets (RWAs), focusing on its mission to ensure a responsible and compliant tokenization of real world assets in the EU. Brickken MiCA’s established rules on crypto assets reflect the EU’s intention to regulate an industry with a diverse service offerings ranging from real estate to intellectual property to artwork. (RWAs consisting of traditionally illiquid assets hold a lot of potential and its Total Addressable Market (TAM) is worth billions of dollars). RWAs are classified as a class of crypto tokens on the blockchain, representing a fractionalized ownership of real estate, artwork and traditionally illiquid assets. Depending on their characteristics, these tokens may be categorized as one of the three types of crypto assets recognised by MiCA: Asset-Referenced Tokens (“ART”), Electronic Money Tokens (“EMT”), and Other Tokens(ie utility token). Asset-Referenced Tokens (“ART”), Electronic Money Tokens (“EMT”), and Other Tokens(ie utility token). Participating in the EU regulatory sandbox will enable EU-based RWA-focused companies such as Brickken to gain more insights into the MiCA’s regulatory compliance requirements on token issuance, investor protection and other mandatory rules, highlighting the potential of tokenization technology, especially in a MiCA-regulated environment. Most especially, it can serve as a case study for compliant and innovative RWA companies in the EU. Brickken According to Brickken CEO Edwin Mata Navarro, “this opportunity validates our innovative approach to asset tokenization and also allows us to collaborate with regulators and other industry leaders to build a stronger and more reliable blockchain ecosystem. The experience and knowledge we gain in this regulatory sandbox will be valuable for our future growth and success”. According to Brickken CEO Edwin Mata Navarro, “this opportunity validates our innovative approach to asset tokenization and also allows us to collaborate with regulators and other industry leaders to build a stronger and more reliable blockchain ecosystem. The experience and knowledge we gain in this regulatory sandbox will be valuable for our future growth and success”. Conclusion The EU's commitment to promoting responsible blockchain innovation is evident in the establishment of the EBSI sandbox, which seeks to foster collaboration between key players in the blockchain industry and the EU regulators, especially with regards to the Markets In Crypto Assets(MiCA)regulation. As a platform, it highlights the need for a supportive environment for the growth of blockchain innovation, and it serves as a medium to unlock the full potential of blockchain technology across various sectors within the EU running from financial services, supply chain management to defense, and healthcare. Finally, it presents an opportunity for EU-based RWA-focused companies to work towards becoming MiCA-compliant in their services and operations across the EU. This signifies that as more innovative companies participate in the sandbox and collaborate with regulators, the future of tokenization technology seamlessly integrating into the European economy is guaranteed to create new opportunities for businesses, investors, and the citizens.

The EU Blockchain Regulatory Sandbox And RWA Tokenization Under MiCA

JPMorgan's Participation in RWA Signifies a Strong Endorsement of Blockchain, Brickken CEO Says

PricewaterhouseCoopers(PwC), one of the world’s leading professional services firms, recently launched its first-ever RWA-focused initiative called Scale Tokenization And Digital Asset Program, joining the likes of BlackRock, Citibank, and JP Morgan Chase in shaping the digital asset industry. PwC’s recent foray into the RWA tokenization space highlights the fact institutional interest in the tokenization of real world assets is increasingly building up.  In March 2024 BlackRock, the world's largest asset manager, announced the launch of its first-ever on-chain treasuries product, amassing $280 million in deposits. As these giant companies begin to converge around RWA tokenization, the race to the very top of the industry may have just begun. Entering the race, PwC recently selected 11 scale-ups from a pool of over 700 applications “ to help solve important problems for the Financial Services industry’.’ Of these selected companies, only three were core RWA protocols, namely, Zoniqx, Brickken, and Trust Stamp. Commenting on the selection, Edwin Mata Navarro, CEO of Brickken, stated: "Joining the PwC’s Scale program marks a significant milestone in our journey. It not only validates our technological prowess and market impact but also sets the stage for our next phase of institutional expansion. We are excited to leverage this opportunity to enhance our offerings and forge meaningful partnerships through PwC and Growth Builders’ network." What You Should Know About The Scale Tokenization Program Growing Institutional Interest In addition to being a tightly contested race, the program highlights the growing institutional interest in the tokenization of real world assets as well as the increasing pressure faced by major financial institutions to catch up with the latest developments in the evolving digital landscape. This shift to RWA tokenization has increasingly become expedient as it introduces a revolutionary approach to the management and ownership of traditionally illiquid assets. Eleven Handpicked Scaleups It may interest the reader to know that only 11 startups were selected out of over 700 companies that applied for the maiden edition of the Scale Tokenization And Digital Asset Cohort. This tiny number represents the lucky few who were handpicked by the company. While the criteria for selection may be difficult to assess, it leaves a strong impression that the lucky few who made it to the final list have made an indelible mark on the digital asset industry. Partnerships With Leading Firms The program is designed to foster collaboration between established financial institutions and innovative digital asset startups that specialize in real-world asset tokenization, stemming from the growing recognition of RWA tokenization in the financial service industry. Most importantly, it is tailored toward the needs of the needs of its global network of financial services clients. Three Core RWA Protocols Only three RWA tokenization protocols were selected, namely, Zoniqx, Brickken, and Trust Stamp. The other eight participants include Alterscop, Archipels, Custodiex, Hedgeguard, Truvity, Vidos, Venly, and Vertalo. The selection of these eleven startups underscores their established presence within the digital asset industry. RWA Products Pitch The program offers the selected cohort an opportunity to pitch to industry leaders from PwC’s global network of Financial Services clients. A Tokenized Future: Myth or Unfolding Reality? As big major players such as PwC, BlackRock, and CitiBank are increasingly bullish on RWA tokenization, it is easy to infer that the world is fast heading toward a tokenized future, one where tangible or traditionally illiquid assets are offered in new markets to millions of potential buyers and sellers. The fractionalization of digital assets and the seamless convergence of buyers and sellers will also create a secondary liquidity market for assets that no one ever thought could one day become liquid and investable, highlighting the immense potential of blockchain technology and its applications in the financial sector. Although the promises of a tokenized future are immense, there are key challenges that need to be adequately addressed. Regulatory compliance, blockchain security, and investor education are some of the major challenges that must be carefully addressed at the industry level. This underscores the need for RWA companies to collaborate with legal experts and innovators to build cutting-edge technology to ensure a seamless experience. It can be inferred that the PwC’s cohort represents the company’s keen eye on future trends, participating in it offers an opportunity for the selected RWA startups to connect with some of the world’s leading innovators that can help them improve their solutions. Additionally, it not only underscores the role that leading industry leaders can play in accelerating meaningful change in society, but it also highlights the fact that the tokenization of real-world assets (RWA) is the new investment frontier for everyone across the world–including the most price-sensitive investors. Lastly, it shows that there is an increasing need for sustained collaboration between established financial institutions and RWA projects in tackling the challenges facing the industry and in building a world-class digital asset industry that is built on diversity, security, transparency, and cost-effectiveness. Conclusion Building a tokenized future where tons of traditionally illiquid assets are offered to millions of potential buyers and sellers boils down to leveraging blockchain technology to create new regulated markets and products. The journey towards this future is well underway, and it clearly underscores the role that major financial institutions in the world can play in bringing it to fruition. This interplay can be described as a work in progress, which requires a sustained partnership and collaboration between these various established institutions and RWA projects that are making the tokenization of real-world assets and providing the infrastructure that is required to support them. PricewaterhouseCoopers(PwC), one of the world’s leading professional services firms, recently launched its first-ever RWA-focused initiative called Scale Tokenization And Digital Asset Program , joining the likes of BlackRock, Citibank, and JP Morgan Chase in shaping the digital asset industry. Scale Tokenization And Digital Asset Program Scale Tokenization And Digital Asset BlackRock, Citibank, and JP Morgan Chase PwC’s recent foray into the RWA tokenization space highlights the fact institutional interest in the tokenization of real world assets is increasingly building up.  In March 2024 BlackRock, the world's largest asset manager, announced the launch of its first-ever on-chain treasuries product, amassing $280 million in deposits. As these giant companies begin to converge around RWA tokenization, the race to the very top of the industry may have just begun. Entering the race, PwC recently selected 11 scale-ups from a pool of over 700 applications “ to help solve important problems for the Financial Services industry’.’ Of these selected companies, only three were core RWA protocols, namely, Zoniqx, Brickken, and Trust Stamp. Zoniqx, Brickken, and Trust Stamp. Commenting on the selection, Edwin Mata Navarro, CEO of Brickken, stated: "Joining the PwC’s Scale program marks a significant milestone in our journey. It not only validates our technological prowess and market impact but also sets the stage for our next phase of institutional expansion. We are excited to leverage this opportunity to enhance our offerings and forge meaningful partnerships through PwC and Growth Builders’ network." "Joining the PwC’s Scale program marks a significant milestone in our journey. It not only validates our technological prowess and market impact but also sets the stage for our next phase of institutional expansion. We are excited to leverage this opportunity to enhance our offerings and forge meaningful partnerships through PwC and Growth Builders’ network." What You Should Know About The Scale Tokenization Program Growing Institutional Interest In addition to being a tightly contested race, the program highlights the growing institutional interest in the tokenization of real world assets as well as the increasing pressure faced by major financial institutions to catch up with the latest developments in the evolving digital landscape. This shift to RWA tokenization has increasingly become expedient as it introduces a revolutionary approach to the management and ownership of traditionally illiquid assets. Eleven Handpicked Scaleups It may interest the reader to know that only 11 startups were selected out of over 700 companies that applied for the maiden edition of the Scale Tokenization And Digital Asset Cohort. This tiny number represents the lucky few who were handpicked by the company. While the criteria for selection may be difficult to assess, it leaves a strong impression that the lucky few who made it to the final list have made an indelible mark on the digital asset industry. Partnerships With Leading Firms The program is designed to foster collaboration between established financial institutions and innovative digital asset startups that specialize in real-world asset tokenization, stemming from the growing recognition of RWA tokenization in the financial service industry. Most importantly, it is tailored toward the needs of the needs of its global network of financial services clients. Three Core RWA Protocols Only three RWA tokenization protocols were selected, namely, Zoniqx, Brickken, and Trust Stamp. The other eight participants include Alterscop, Archipels, Custodiex, Hedgeguard, Truvity, Vidos, Venly, and Vertalo. The selection of these eleven startups underscores their established presence within the digital asset industry. Zoniqx, Brickken, and Trust Stamp. Alterscop, Archipels, Custodiex, Hedgeguard, Truvity, Vidos, Venly, and Vertalo. RWA Products Pitch The program offers the selected cohort an opportunity to pitch to industry leaders from PwC’s global network of Financial Services clients. A Tokenized Future: Myth or Unfolding Reality? As big major players such as PwC, BlackRock, and CitiBank are increasingly bullish on RWA tokenization, it is easy to infer that the world is fast heading toward a tokenized future, one where tangible or traditionally illiquid assets are offered in new markets to millions of potential buyers and sellers. The fractionalization of digital assets and the seamless convergence of buyers and sellers will also create a secondary liquidity market for assets that no one ever thought could one day become liquid and investable, highlighting the immense potential of blockchain technology and its applications in the financial sector. Although the promises of a tokenized future are immense, there are key challenges that need to be adequately addressed. Regulatory compliance, blockchain security, and investor education are some of the major challenges that must be carefully addressed at the industry level. This underscores the need for RWA companies to collaborate with legal experts and innovators to build cutting-edge technology to ensure a seamless experience. It can be inferred that the PwC’s cohort represents the company’s keen eye on future trends, participating in it offers an opportunity for the selected RWA startups to connect with some of the world’s leading innovators that can help them improve their solutions. Additionally, it not only underscores the role that leading industry leaders can play in accelerating meaningful change in society, but it also highlights the fact that the tokenization of real-world assets (RWA) is the new investment frontier for everyone across the world–including the most price-sensitive investors. Lastly, it shows that there is an increasing need for sustained collaboration between established financial institutions and RWA projects in tackling the challenges facing the industry and in building a world-class digital asset industry that is built on diversity, security, transparency, and cost-effectiveness. Conclusion Building a tokenized future where tons of traditionally illiquid assets are offered to millions of potential buyers and sellers boils down to leveraging blockchain technology to create new regulated markets and products. The journey towards this future is well underway, and it clearly underscores the role that major financial institutions in the world can play in bringing it to fruition. This interplay can be described as a work in progress, which requires a sustained partnership and collaboration between these various established institutions and RWA projects that are making the tokenization of real-world assets and providing the infrastructure that is required to support them.

How PricewaterhouseCoopers' RWA Tokenization Cohort Offers a Glimpse Into The Tokenized Future

Authors:
(1) Eilidh Jack, School of Mathematics and Statistics, University of Glasgow, Glasgow, G12 8QQ (eilidh.jack@glasgow.ac.uk);
(2) Craig Alexander, School of Mathematics and Statistics, University of Glasgow, Glasgow, G12 8QQ (craig.alexander.2@glasgow.ac.uk);
(3) Elinor Jones, Department of Statistical Science, University College London, London, WC1E 7HB (elinor.jones@ucl.ac.uk). Table of Links Abstract and Introduction
Course information
Motivation and intervention
Findings
Discussion
Conclusion and References 6 Conclusion The results we present here are in line with previous research (for example [Lo and Hew, 2017], [Buckley and Doyle, 2016], [Dahlstrøm, 2012]) and show a stark increase in student engagement with pre-lecture activities on a course taught in flipped mode. As the pre-lecture activities of interest were quiz-based - with points awarded for attempting the quizzes on time rather than quiz score - we were able to investigate whether the increased engagement was meaningful or the result of students ‘gaming’ the leaderboard. In our study, there was no evidence of the latter. It is thought that the two statistics courses considered here are the only time the students came across the Level Up! plugin or other form of gamification. It is therefore not known whether the increased engagement is due to the novelty of a leaderboard and whether gamification would be as successful if implemented widely across multiple courses. The significant increase in student engagement after the adoption of a gamification strategy is certainly worthy of further research. Though the results from the gamification intervention were very positive, student engagement is still far from perfect. Diversity in teaching and learning approaches is surely the key to engaging students across their courses, with gamification a valuable strategy in a teacher’s toolbox. 7 References [Alomari et al., 2019] Alomari, I., Al-Samarraie, H., and Yousef, R. (2019). The role of gamification techniques in promoting student learning: A review and synthesis: A review and synthesis. Journal of Information Technology Education:Research, 18:395–417. [Blair, 2017] Blair, A. (2017). Understanding first-year students’ transition to university: A pilot study with implications for student engagement, assessment, and feedback. Politics, 37.2:215–228. [Bredow et al., 2021] Bredow, C. A., Roehling, P. V., Knorp, A. J., and Sweet, A. M. (2021). To flip or not to flip? a meta-analysis of the efficacy of flipped learning in higher education. Review of educational research, 91(6):878–918. [Buckley and Doyle, 2016] Buckley, P. and Doyle, E. (2016). Gamification and student motivation. Interactive Learning Environments, 24(6):1162–1175. [Cronhjort et al., 2017] Cronhjort, M., Filipsson, L., and Weurlander, M. (2017). Improved engagement and learning in flipped-classroom calculus. Teaching Mathematics and its Applications: An International Journal of the IMA, 37(3):113–121. [Dahlstrøm, 2012] Dahlstrøm, C. (2012). Impacts of gamification on intrinsic motivation. Education and Humanities Research, pages 1–11. [Deterding et al., 2011] Deterding, S., Khaled, R., Nacke, L. E., Dixon, D., et al. (2011). Gamification: Toward a definition. In CHI 2011 gamification workshop proceedings, volume 12, pages 1–79. Vancouver, Canadá. [Ding et al., 2018] Ding, L., Er, E., and Orey, M. (2018). An exploratory study of student engagement in gamified online discussions. Computers & Education, 120:213–226. [Domínguez et al., 2013] Domínguez, A., de Navarrete, J. S., de Marcos, L., Fernández-Sanz, L., Pagés, C., and Martínez-Herráiz, J.-J. (2013). Gamifying learning experiences: Practical implications and outcomes. Computers & Education, 63:380–392. [Dong et al., 2012] Dong, T., Dontcheva, M., Joseph, D., Karahalios, K., Newman, M., and Ackerman, M. (2012). Discovery-based games for learning software. In Proceedings of the SIGCHI Conference on Human Factors in Computing Systems, CHI ’12, page 2083–2086, New York, NY, USA. Association for Computing Machinery. [Ekici, 2021] Ekici, M. (2021). A systematic review of the use of gamification in flipped learning. Education and Information Technologies, 26(3):3327–3346. [Hakulinen et al., 2013] Hakulinen, L., Auvinen, T., and Korhonen, A. (2013). Empirical study on the effect of achievement badges in trakla2 online learning environment. In 2013 Learning and Teaching in Computing and Engineering, pages 47–54. [Hartikainen et al., 2019] Hartikainen, S., Rintala, H., Pylväs, L., and Nokelainen, P. (2019). The concept of active learning and the measurement of learning outcomes: A review of research in engineering higher education. Education Sciences, 9(4):276. [Heilbrunn et al., 2017] Heilbrunn, B., Herzig, P., and Schill, A. (2017). Gamification Analytics—Methods and Tools for Monitoring and Adapting Gamification Designs, pages 31–47. Springer International Publishing, Cham. [Huang and Hew, 2018] Huang, B. and Hew, K. F. (2018). Implementing a theory-driven gamification model in higher education flipped courses: Effects on out-of-class activity completion and quality of artifacts. Computers & Education, 125:254–272. [Ireland and Mouthaan, 2020] Ireland, J. and Mouthaan, M. (2020). Perspectives on curriculum design: comparing the spiral and the network models. Research Matters. [Kim and Castelli, 2021] Kim, J. and Castelli, D. M. (2021). Effects of gamification on behavioral change in education: A meta-analysis. International Journal of Environmental Research and Public Health, 18(7). [Leitner et al., 2017] Leitner, P., Khalil, M., and Ebner, M. (2017). Learning Analytics in Higher Education—A Literature Review, volume 94, pages 1–23. Springer International Publishing. [Lo and Hew, 2017] Lo, C. K. and Hew, K. F. (2017). A critical review of flipped classroom challenges in k-12 education: possible solutions and recommendations for future research. Research and Practice in Technology Enhanced Learning, 12(1):4. [Lo et al., 2017] Lo, C. K., Hew, K. F., and Chen, G. (2017). Toward a set of design principles for mathematics flipped classrooms: A synthesis of research in mathematics education. Educational Research Review, 22:50–73. [Marcey, 2014] Marcey, D. J. (2014). The lecture hall as an arena of inquiry: Using cinematic lectures and inverted classes (clic) to flip an introductory biology lecture course. Archive of the Academic Commons. [Owens et al., 2020] Owens, D. C., Sadler, T. D., Barlow, A. T., and Smith-Walters, C. (2020). Student motivation from and resistance to active learning rooted in essential science practices. Research in Science Education, 50(1):253–277. [Stone, 2012] Stone, B. B. (2012). Flip your classroom to increase active learning and student engagement. In Proceedings from 28th Annual Conference on Distance Teaching and Learning, Madison, Wisconsin, USA. [Touchton, 2015] Touchton, M. (2015). Flipping the classroom and student performance in advanced statistics: Evidence from a quasi-experiment. Journal of Political Science Education, 11(1):28–44. [Wester et al., 2021] Wester, E. R., Walsh, L. L., Arango-Caro, S., and Callis-Duehl, K. L. (2021). Student engagement declines in stem undergraduates during covid-19–driven remote learning. Journal of Microbiology & Biology Education, 22(1):10.1128/jmbe.v22i1.2385. [Wilson, 2013] Wilson, S. G. (2013). The flipped class: A method to address the challenges of an undergraduate statistics course. Teaching of Psychology, 40(3):193–199. [Wood, 2023] Wood, A. (2023). Effective Teaching in Large STEM Classes. IOP Series in Physics Education. IOP Publishing. Publisher Copyright: © IOP Publishing Ltd 2023. All rights reserved. [Zaric et al., 2017] Zaric, N., Scepanovic, S., Markovic, T., Ljucovic, J., and Davcev, D. (2017). The model for gamification of e-learning in higher education based on learning styles. In International Conference on ICT Innovations, pages 265–273. This paper is available on arxiv under CC BY 4.0 DEED license. Authors: (1) Eilidh Jack, School of Mathematics and Statistics, University of Glasgow, Glasgow, G12 8QQ (eilidh.jack@glasgow.ac.uk); (2) Craig Alexander, School of Mathematics and Statistics, University of Glasgow, Glasgow, G12 8QQ (craig.alexander.2@glasgow.ac.uk); (3) Elinor Jones, Department of Statistical Science, University College London, London, WC1E 7HB (elinor.jones@ucl.ac.uk). Authors: Authors: (1) Eilidh Jack, School of Mathematics and Statistics, University of Glasgow, Glasgow, G12 8QQ (eilidh.jack@glasgow.ac.uk); (2) Craig Alexander, School of Mathematics and Statistics, University of Glasgow, Glasgow, G12 8QQ (craig.alexander.2@glasgow.ac.uk); (3) Elinor Jones, Department of Statistical Science, University College London, London, WC1E 7HB (elinor.jones@ucl.ac.uk). Table of Links Abstract and Introduction Course information Motivation and intervention Findings Discussion Conclusion and References Abstract and Introduction Abstract and Introduction Course information Course information Motivation and intervention Motivation and intervention Findings Findings Discussion Discussion Conclusion and References Conclusion and References 6 Conclusion The results we present here are in line with previous research (for example [Lo and Hew, 2017], [Buckley and Doyle, 2016], [Dahlstrøm, 2012]) and show a stark increase in student engagement with pre-lecture activities on a course taught in flipped mode. As the pre-lecture activities of interest were quiz-based - with points awarded for attempting the quizzes on time rather than quiz score - we were able to investigate whether the increased engagement was meaningful or the result of students ‘gaming’ the leaderboard. In our study, there was no evidence of the latter. It is thought that the two statistics courses considered here are the only time the students came across the Level Up! plugin or other form of gamification. It is therefore not known whether the increased engagement is due to the novelty of a leaderboard and whether gamification would be as successful if implemented widely across multiple courses. The significant increase in student engagement after the adoption of a gamification strategy is certainly worthy of further research. Though the results from the gamification intervention were very positive, student engagement is still far from perfect. Diversity in teaching and learning approaches is surely the key to engaging students across their courses, with gamification a valuable strategy in a teacher’s toolbox. 7 References [Alomari et al., 2019] Alomari, I., Al-Samarraie, H., and Yousef, R. (2019). The role of gamification techniques in promoting student learning: A review and synthesis: A review and synthesis. Journal of Information Technology Education:Research, 18:395–417. [Blair, 2017] Blair, A. (2017). Understanding first-year students’ transition to university: A pilot study with implications for student engagement, assessment, and feedback. Politics, 37.2:215–228. [Bredow et al., 2021] Bredow, C. A., Roehling, P. V., Knorp, A. J., and Sweet, A. M. (2021). To flip or not to flip? a meta-analysis of the efficacy of flipped learning in higher education. Review of educational research, 91(6):878–918. [Buckley and Doyle, 2016] Buckley, P. and Doyle, E. (2016). Gamification and student motivation. Interactive Learning Environments, 24(6):1162–1175. [Cronhjort et al., 2017] Cronhjort, M., Filipsson, L., and Weurlander, M. (2017). Improved engagement and learning in flipped-classroom calculus. Teaching Mathematics and its Applications: An International Journal of the IMA, 37(3):113–121. [Dahlstrøm, 2012] Dahlstrøm, C. (2012). Impacts of gamification on intrinsic motivation. Education and Humanities Research, pages 1–11. [Deterding et al., 2011] Deterding, S., Khaled, R., Nacke, L. E., Dixon, D., et al. (2011). Gamification: Toward a definition. In CHI 2011 gamification workshop proceedings, volume 12, pages 1–79. Vancouver, Canadá. [Ding et al., 2018] Ding, L., Er, E., and Orey, M. (2018). An exploratory study of student engagement in gamified online discussions. Computers & Education, 120:213–226. [Domínguez et al., 2013] Domínguez, A., de Navarrete, J. S., de Marcos, L., Fernández-Sanz, L., Pagés, C., and Martínez-Herráiz, J.-J. (2013). Gamifying learning experiences: Practical implications and outcomes. Computers & Education, 63:380–392. [Dong et al., 2012] Dong, T., Dontcheva, M., Joseph, D., Karahalios, K., Newman, M., and Ackerman, M. (2012). Discovery-based games for learning software. In Proceedings of the SIGCHI Conference on Human Factors in Computing Systems, CHI ’12, page 2083–2086, New York, NY, USA. Association for Computing Machinery. [Ekici, 2021] Ekici, M. (2021). A systematic review of the use of gamification in flipped learning. Education and Information Technologies, 26(3):3327–3346. [Hakulinen et al., 2013] Hakulinen, L., Auvinen, T., and Korhonen, A. (2013). Empirical study on the effect of achievement badges in trakla2 online learning environment. In 2013 Learning and Teaching in Computing and Engineering, pages 47–54. [Hartikainen et al., 2019] Hartikainen, S., Rintala, H., Pylväs, L., and Nokelainen, P. (2019). The concept of active learning and the measurement of learning outcomes: A review of research in engineering higher education. Education Sciences, 9(4):276. [Heilbrunn et al., 2017] Heilbrunn, B., Herzig, P., and Schill, A. (2017). Gamification Analytics—Methods and Tools for Monitoring and Adapting Gamification Designs, pages 31–47. Springer International Publishing, Cham. [Huang and Hew, 2018] Huang, B. and Hew, K. F. (2018). Implementing a theory-driven gamification model in higher education flipped courses: Effects on out-of-class activity completion and quality of artifacts. Computers & Education, 125:254–272. [Ireland and Mouthaan, 2020] Ireland, J. and Mouthaan, M. (2020). Perspectives on curriculum design: comparing the spiral and the network models. Research Matters. [Kim and Castelli, 2021] Kim, J. and Castelli, D. M. (2021). Effects of gamification on behavioral change in education: A meta-analysis. International Journal of Environmental Research and Public Health, 18(7). [Leitner et al., 2017] Leitner, P., Khalil, M., and Ebner, M. (2017). Learning Analytics in Higher Education—A Literature Review, volume 94, pages 1–23. Springer International Publishing. [Lo and Hew, 2017] Lo, C. K. and Hew, K. F. (2017). A critical review of flipped classroom challenges in k-12 education: possible solutions and recommendations for future research. Research and Practice in Technology Enhanced Learning, 12(1):4. [Lo et al., 2017] Lo, C. K., Hew, K. F., and Chen, G. (2017). Toward a set of design principles for mathematics flipped classrooms: A synthesis of research in mathematics education. Educational Research Review, 22:50–73. [Marcey, 2014] Marcey, D. J. (2014). The lecture hall as an arena of inquiry: Using cinematic lectures and inverted classes (clic) to flip an introductory biology lecture course. Archive of the Academic Commons. [Owens et al., 2020] Owens, D. C., Sadler, T. D., Barlow, A. T., and Smith-Walters, C. (2020). Student motivation from and resistance to active learning rooted in essential science practices. Research in Science Education, 50(1):253–277. [Stone, 2012] Stone, B. B. (2012). Flip your classroom to increase active learning and student engagement. In Proceedings from 28th Annual Conference on Distance Teaching and Learning, Madison, Wisconsin, USA. [Touchton, 2015] Touchton, M. (2015). Flipping the classroom and student performance in advanced statistics: Evidence from a quasi-experiment. Journal of Political Science Education, 11(1):28–44. [Wester et al., 2021] Wester, E. R., Walsh, L. L., Arango-Caro, S., and Callis-Duehl, K. L. (2021). Student engagement declines in stem undergraduates during covid-19–driven remote learning. Journal of Microbiology & Biology Education, 22(1):10.1128/jmbe.v22i1.2385. [Wilson, 2013] Wilson, S. G. (2013). The flipped class: A method to address the challenges of an undergraduate statistics course. Teaching of Psychology, 40(3):193–199. [Wood, 2023] Wood, A. (2023). Effective Teaching in Large STEM Classes. IOP Series in Physics Education. IOP Publishing. Publisher Copyright: © IOP Publishing Ltd 2023. All rights reserved. [Zaric et al., 2017] Zaric, N., Scepanovic, S., Markovic, T., Ljucovic, J., and Davcev, D. (2017). The model for gamification of e-learning in higher education based on learning styles. In International Conference on ICT Innovations, pages 265–273. This paper is available on arxiv under CC BY 4.0 DEED license. This paper is available on arxiv under CC BY 4.0 DEED license. available on arxiv

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