Smart Token Labs CMO: Brands will become token issuers in their own right

Ashton Addison: You talk about making tokens smart. Why aren't they smart today, and how are you changing that?▶ 01:05

Brent Annells: We do it through a core solution called TokenScript. It's a framework for creating a smart token interface around existing tokens. It effectively wraps an existing coin, NFT or other type of token, and brings composability, portability and limitless logic and potential utility to it. It lets tokens connect to other tokens or smart contracts, the way a dapp does. Just as importantly, it creates a connection point into web2 sites and services, such as membership and rewards programs. So through TokenScript we're building a bridge that brings tokens into web2.

Ashton: Are you focused on a specific ecosystem, such as Ethereum?▶ 02:37

Brent: We're an EVM-based solution, so essentially an Ethereum-based solution. But we enable pretty much any type of token in that ecosystem.

Ashton: If I run a web2 platform, how would I benefit from integrating this technology?▶ 03:00

Brent: Our longer-term vision is for TokenScript to become a new standard for the building blocks of web3. We've just released a point solution out of it called Brand Connector. It lets any website recognize, verify and interact with any token and any user wallet. Take a hotel booking site with Brand Connector installed. It recognizes that a visitor has a wallet and asks whether they want to interact with the site. If they do, it can recognize specific tokens in their wallet, NFTs in particular. It can then customize its content, offers and services based on the tokens the user holds. Any website can recognize a user, verify their wallet and customize its offer based on the tokens they hold.

Ashton: A web2 platform could add code to let users connect MetaMask and access Ethereum tokens. What's your competitive advantage over that route?▶ 04:11

Brent: We deploy as a simple npm package at the browser level. Through that we can recognize any wallet, and any token within that wallet. It's a fully open source, web3-based solution.

Ashton: Are you seeing web2 platforms keep up with the growth in crypto? Is there real traction?▶ 05:13

Brent: It feels like a real pivot point. NFTs are part of the zeitgeist now, and multiple brands are experimenting with web3 through them, whether by partnering with collections, doing their own drops or trying out utility or liquidity. DeFi is a less obvious pathway for them, so NFTs have become a gateway. We've been building for four years on the vision that tokens would be the new digital primitive, as ubiquitous as web pages, and that's starting to be borne out. Look at Bored Ape Yacht Club and what Yuga Labs is doing. The NFT is like an open innovation platform, and holders have open IP rights to create anything they like, from launching a record label in Decentraland to a merch offering. We're also working with a US resort chain that has a big operation in New York City. It's putting Brand Connector into its hotel and resort website to make Ape holders VIPs while they're in New York for NFT NYC. It recognizes the NFT someone holds and doesn't need to partner with the collection to do it.

Ashton: Will NFTs be the catalyst that drives web2 businesses into the space, or is more to come?▶ 08:38

Brent: NFTs are a fantastic gateway. They represent utility and liquidity, authenticity or scarcity. With brands, I think the focus will be on utility, authenticity and experience rather than speculation. That means loyalty and rewards, and surprise-and-delight moments, such as dropping something to customers that lets them attend an event, with the NFT authenticating their membership. Brands will also tokenize themselves. They'll bridge into NFT collections and borrow brand equity, but they'll become token issuers in their own right. Take the Qantas frequent flyer program. Qantas could tokenize the membership tiers, whether platinum, gold or silver, which gives rights to lounges and real-world experiences. Or it could tokenize the points, potentially creating a secondary market for them, which goes one step further. I think we're just at the beginning.

Ashton: What are you building this year?▶ 11:35

Brent: We have two core products. TokenScript is a new standard for tokens as the building blocks and bridges between web2 and web3. AlphaWallet is a mobile NFT wallet that's effectively a super user agent for smart tokens. This year the main focus is TokenScript, and our go-to-market is in NFTs and brands. Bottom up, we're working with NFT collections, and we have smart contracts available for derivative collections. Top down, we're focused on Brand Connector, which we think has real market fit right now. So many brands want to connect with NFT collections, and so many collections want to bridge into the real world. We think we have an elegant, simple solution for both to grow over the next 12 months.

Ashton: How can collections, brands or anyone interested get involved?▶ 13:02

Brent: All of our tech is freely available, because we're an open source software development company. You can reach us at TokenScript on Twitter, or go to GitHub and look at the repository to get the code. At this early stage of driving adoption, we also partner with collections and brands where we see good opportunities to showcase the technology. It's their project and their initiative, and we're just the enabler with the technology in the background. We love to partner with brands, collections and others doing innovative things, and they can reach out to us directly.