nChain is a leading global provider of blockchain technology, IP licensing and consulting services. We serve clients globally to power several industries, including gaming, supply chain, and finance. nChain offers Web3 solutions provider defined by a purpose-driven team that has come together to address some of the global challenges and make asocial impact, transforming the world from Web2 to Web3. nChain currently has almost 2,800 granted and pending patents and is the developer behind the Bitcoin SV Node software, Teranode, Kensei and more. Recently voted one of the Top 100 most innovative firms in the world.
nChain has made 13 investments since its inception, five of which were made in the last two or three months:
- March 30, 2023: TradeWindow (US$7M for 19.99% stake)
- April 24, 2023: Libraro (£2M for 20% stake)
- May 5, 2023: Asset Layer (US$2.4M for 20% stake)
- May 16, 2023: Planetary Metaverse (£2.5M for 25% stake)
- May 31, 2023: E-Livestock (US$2M for 20% stake)
These investments are described below, with a few highlighted passages to emphasize arguments that we could possibly use.
Investments since March 2023
TradeWindow (US$7M for 19.99% stake)
LONDON, March 30, 2023 /PRNewswire/ — nChain, a world leader in Web3 and enterprise blockchain technology and the developer of the BSV Protocol, today announces it has entered into a heads of agreement to take a 19.99% stake in TradeWindow (NZX: TWL), a leading international TradeTech company. The investment deal is valued at USD 7 million and nChain will also identify a new member to join TradeWindow’s board of directors.
In addition to cash, the strategic investment by nChain would see the company provide TradeWindow additional software engineering capabilities to accelerate its Web3 transformation journey and delivery of its global trade platform. nChain brings leading-edge blockchain computing infrastructure to the partnership along with extensive software development and enterprise sales capabilities.
TradeWindow would be upgrading the performance of its global trade platform with the adoption of BSV as the blockchain protocol.
Driving ecosystem growth is a priority for Christen Ager- Hanssen, nChain’s recently appointed Group CEO.
Christen-Ager Hanssen, commented that “nChain is focused on powering software solutions that have maximum social impact. In taking equity and being a stakeholder, TradeWindow is joining us on our journey to a Web3 powered economy. They recognise the potential of our technology and are moving from Hyperledger to BSV.
Libraro (£2M for 20% stake)
London, UK – April 24, 2023 – nChain today announces its partnership with Libraro to revolutionise the book publishing industry with blockchain technology. nChain is investing GBP 2,000,000 into the company and taking a 20% equity stake to drive the development and adoption of Libraro’s solution.
Emerging from the successful and innovative blockchain incubator programme Block Dojo, which forms part of nChain Group, Libraro harnesses the power of crowd reading to connect authors with readers and publishers in an innovative way.
“We’re very excited to partner with nChain and leverage their expertise in blockchain technology,” said Arsim Shilova, Libraro CEO. “Their investment will help us build a state-of-the-art, secure and scalable platform for aspiring authors to showcase their work, protect their intellectual property, and engage with their audience.”
By leveraging nChain’s robust Web3 and Blockchain IP portfolio, the partnership will enhance Libraro’s platform capabilities. nChain will also support Libraro through development and professional services, using their expertise in building apps and providing back-end blockchain infrastructure.
Christen-Ager Hanssen, nChain Group CEO, added that “We’re happy to announce our partnership with Libraro. With our expertise and development capabilities nChain will be their tech partner, using our IP portfolio, to boost their product offering. This solution has the potential to transform the publishing model by empowering readers and helping new writers get published. Our collaboration with Libraro is another great use case in another industry where we are making an impact.”
Asset Layer (US$2.4M for 20% stake)
LONDON, May 5, 2023 /PRNewswire/ — nChain, a world leader in Web3 and Blockchain technologies, today announces that it is investing $2.4 million and taking a 20% equity stake in Asset Layer, a complete digital asset platform powered by blockchain.
Christen-Ager Hanssen, nChain Group CEO, said that “Asset Layer is a fantastic addition to our ecosystem. Asset Layer is the right product for several projects nChain is currently leading. Together we are transforming legacy tools to be relevant in Web3.
By leveraging nChain’s robust Web3 and Blockchain IP portfolio, the partnership will enhance Asset Layer’s offering and drive the adoption of the platform. nChain provides the core blockchain infrastructure behind Asset Layer’s solution, which is affording customers interoperability, security, and scalability.
nChain is spearheading the world’s transition from Web2 to Web3. Our platform’s easy-to-use toolset not only helps simplify that transition, but it also helps turn Web3 apps into a Web3 ecosystem by enabling application interoperability,” added Jackson Laskey, Asset Layer CEO. “With nChain’s IP, tech, and team as a catalyst, not only can Asset Layer reach its potential but so can the wider Web3 world.
Planetary Metaverse (£2.5M for 25% stake)
London, UK – May 16, 2023 – nChain today announces its partnership with Planetary, a new-generation mobile app that combines a social media layer with a metaverse platform. nChain is investing GBP 2,500,000 of value for new shares worth 25% of the equity on a GBP 10,000,000 post-money valuation to boost the adoption of Planetary’s solution.
Planetary is a virtual 3D world where people can meet, work, and play in a fully-functional metaverse. Users can create personalised avatars, engage in 3D worlds, host live events, and monetise their online presence, all on one platform.
Planetary aims to integrate NFT communities and provide its users with a new play2earn model. The app has innovative features like customisable virtual spaces and various monetisation options, offering new revenue opportunities for creators.
By leveraging nChain’s robust Web3 and Blockchain IP portfolio, the partnership will boost Planetary’s platform capabilities. nChain will also support the development of the world’s first AI tool set which creates 3D spaces from photos and prompts, to make experiences sharable across the metaverse. Planetary will grant nChain the right to appoint one director to the board of directors. In turn, nChain promises technology support services, marketing assistance, and help with fundraising.
Christen-Ager Hanssen, nChain Group CEO, added that “This is an exciting addition to our developing Web3 ecosystem. We are bridging the Web2 and Web3 worlds to create seamless and immersive experiences for both users and brands. Together Planetary and nChain are accelerating the shift to play2earn economies, which is what Web3 is all about.”
E-Livestock (US$2M for 20% stake)
London, UK – May 31, 2023 – nChain today announces its partnership with E-Livestock, an AgriTech start-up that has created a cattle traceability platform to record data on-chain. nChain is investing USD 2,000,000 and taking a 20% equity stake in the company.
E-Livestock’s platform allows farmers to collateralise their cattle to secure loans and get paid for the true value of their animals. The traceability solution attempts to ensure healthy livestock and financial security for farmers by creating a unique digital ‘passport’ for each animal. E-Livestock currently provides their solution across Zimbabwe, Mozambique, Zambia and Uganda, enabling their communities to onboard the unbanked and accelerate financial inclusion. With the help of E-Livestock, farmers will be able to secure loans, using their cattle as collateral.
This ‘passport’ confidentially embeds data about ownership, vaccinations, and movements. Information is scanned and collected via an RFID tag on the cattle’s ear and links to a phone-based app. nChain’s innovative platform—Kensei—notarises this to a public ledger, giving transparency to all stakeholders in the process from banks to beef buyers, while also allowing farmers to receive payment automatically. The system reduces reliance on third parties, and associated costs, as well as eliminating the risk of error or duplication.
E-Livestock is leveraging nChain’s robust, scalable, and innovative blockchain solutions to deliver optimal performance, both in terms of scalability and energy efficiency, to reduce overheads and allow farmers to receive the maximum compensation possible. The partnership is enabling E-Livestock’s rapid growth as it expands its operations to new territories with nChain providing technology support and professional services.
Together, nChain and E-Livestock are collaborating to offer tokenisation that can demonstrate indisputable proof of ownership, a transparent supply chain, power local community empowerment, and open global marketplace opportunities.
Christen-Ager Hanssen, nChain Group CEO, added that “this is a critical use case for us to demonstrate that blockchain is more than a payments solution and has the potential to solve real-world problems. Our industry-leading technology drives real social impact and levels the playing field for financial inclusion. We’re excited to work with clients like E-Livestock who realise the unique potential of blockchain.”
Currently, there is no unified approach to tackling disease or climate change-related issues that affect cattle because of the lack of a global identification system. E-Livestock’s solution has the potential to deliver global impact through its financial inclusion efforts.
What’s driving nChain investments
Here are the highlighted sentences from the investment descriptions above and categorized by theme:
Improving nChain blockchain technology (nChain invests in companies that use the BSV blockchain protocol as their underlying infrastructure, and by doing so, it can improve its own products and services)
- TradeWindow would be upgrading the performance of its global trade platform
- We’re very excited to partner with nChain and leverage their expertise in blockchain technology
- Asset Layer is a fantastic addition to our ecosystem. Asset Layer is the right product for several projects nChain is currently leading. Together we are transforming legacy tools to be relevant in Web3.
- E-Livestock is leveraging nChain’s robust, scalable, and innovative blockchain solutions to deliver optimal performance
Enhancing nChain branding and reputation (nChain invests in companies that have a potential strong market presence in their respective domains, and by associating itself with these companies, nChain can enhance its reputation and credibility as a leader in Web3 and enterprise blockchain technology, and it can also benefit from the exposure and publicity generated by these companies and their products)
- Driving ecosystem growth is a priority
- Emerging from the successful and innovative blockchain incubator programme Block Dojo
- By leveraging nChain’s robust Web3 and Blockchain IP portfolio, the partnership will enhance Asset Layer’s offering and drive the adoption of the platform.
- By leveraging nChain’s robust Web3 and Blockchain IP portfolio
- This is an exciting addition to our developing Web3 ecosystem.
Having impact to solve real-world problems (nChain invests in companies that address some of the major challenges faced by various industries and sectors, and by doing so, it can demonstrate its commitment to social responsibility and innovation)
- nChain is focused on powering software solutions that have maximum social impact.
- Our collaboration with Libraro is another great use case in another industry where we are making an impact.
- enabling their communities to onboard the unbanked and accelerate financial inclusion
- giving transparency
- The system reduces reliance on third parties, and associated costs, as well as eliminating the risk of error or duplication.
- transparent supply chain, power local community empowerment, and open global marketplace opportunities
- this is a critical use case for us to demonstrate that blockchain is more than a payments solution and has the potential to solve real-world problems. Our industry-leading technology drives real social impact
- potential to deliver global impact
How does it apply to us (pitch strategy)
Based on this analysis from the last five investments by nChain, here are some suggestions on how we could leverage the situation for a better negotiation:
We should emphasize how our solution can benefit from using the BSV blockchain protocol as our underlying infrastructure. It should be quite straightforward.
We could also highlight the advantages of BSV over other blockchains in terms of scalability, security and efficiency, but I’m not sure we have much to highlight. acid kage may know better than I do about this.
We should show how our solution can generate high volumes of transactions on the BSV blockchain.
We should explain how our back-end architecture is an opportunity to improve nChain’s technology and enhance nChain’s branding and reputation as a leader in Web3 and enterprise blockchain technology. So, we should explain why its technology is not ready yet, and how it could apply to several industries in addition to our own project.
If possible, we could emphasize how our project can complement or integrate with some of the existing or potential products and services offered by nChain or its portfolio companies. I’ve not analyzed its entire portfolio yet, but for example what about TradeWindow? Could this make some aspects of our business easier?
We should highlight the huge market opportunity that our solution offers, as the voluntary carbon market is projected to grow rapidly in the next few years, but there is no clear scaling mechanism in place. This is a chance for nChain to take the lead in a dynamic market and transform the way it operates. Our solution is not limited by the market size, as we aim to expand the market.
We should definitely highlight how our solution addresses a global problem that affects millions of people, and how it aligns with nChain’s vision of creating a better world through blockchain technology.
nChain make quite a point of the energy efficiency of the BSV blockchain:
We should leverage this to indicate how it aligns with our entire philosophy of a more environmentally friendly future
nChain Services, Products, and Technologies, and how they are relevant to Carby
- Asset Layer: Digital Asset as a Service
- Provides an API to create digital assets and integrate them into apps
- Integrated wallet to give customers control of funds, tokens, NFTs etc
- UNISOT (Universal Source of Truth)
- Web3 Traceability platform
- Automated payments with smart contracts
- CBDC (Central Bank Digital Currency)
- Cross Border Payments
- Currency transfers via digital currency
- Compliance Log
- Responsible Gaming
- Cashless Casino
- Data integrity platform
- Transparent, auditable, incorruptible, private data
- Digital Cash
- Peer-to-peer cash solution with digital currency
- Asset Trade
- Blockchain-enabled approach to managing assets
- LiteClient Toolbox
- Streamlines the way businesses and clients can use the BSB blockchain
Carby technology requirements
- KYC – probably do this via another 3rd party provider
- Integrated wallet to allow customers to control funds, tokens, NFTs, make transactions, track trades
- Carbon Credit Exchange
- Carbon Bond NFT’s – representing 1 future carbon credit from a specific project, issued at a discount to create a yield over a set life
- Carbon Bond Tokens – perpetual tokens generated based on a pool of Carbon Bond NFT’s, can be “unwrapped” into constituent NFT’s, or NFT’s can be “wrapped” into the pool to generate new tokens
- Smart contracts to enable wrapping/unwrapping of tokens, minting of NFT’s etc
- Reporting functionality
- Sale contracts, CC entry to Verra or other registry
We would have some technology requirements in common with Asset Layer, Asset Trade, and UNISOT (integrated wallet, creation of digital assets, automated payments with smart contracts). The others don’t really have much in common with our tech requirements. There is very little actual technical detail I can find on these, so we can only go by the generic statements of functionality, and presume that these can be applied.
Our use case would involve an extension to work done for any of their existing products and services, which would enable them to continue to expand their own capabilities and offerings
nChain portfolio projects to focus on
Asset Trade, Asset Layer, UNISOT
nChain technology currently ready for our use case
Wallet integration, smart contracts, NFT minting, automated digital payments
nChain technology limitations
Really hard to tell due to the lack of technical details on their technologies, would really need to talk through the ideas with an nChain developer
How we could leverage nChain technology
How it could apply to other industries
Ideas for the pitch script
Overview of Carby
We are developing a solution to help carbon project developers get funding before or after they get certified by an organization like Verra or Gold Standard in the voluntary carbon market. Certification is expensive and time-consuming, so carbon projects face many financial challenges. Even after certification, they often have to wait for years before they can sell enough carbon credits and secure a steady and fair income. On top of that, they don’t get enough money from the sale of their credits, because they mostly sell to local brokers who then resell them to other brokers before they reach the final buyers. In this process, intermediaries take between 30% and 50% of the money, which further reduces the income of carbon projects. We are working on creating a marketplace where carbon projects can sell some of their future carbon credits directly to final buyers, without intermediaries. This would allow them to finance their activities now and reduce their financial burden, while getting a larger share of the sale of their credits. For final buyers, one of the benefits is having direct contact with the projects, which improves transparency and quality assurance of the carbon credits they buy. It would also offer a scaling mechanism to the voluntary carbon market, which is expected to grow by 10 times in the next years, but still faces these huge barriers to entry.
We should have a carbon project journey.
We should have examples of how carbon projects can empower local communities.