How SHOP is Decentralizing eCommerce and Empowering Shoppers [INTERVIEW]
Founded in 2017, SHOP is on a mission to decentralize e-commerce by empowering shoppers and brands through the tokenization of personal data. In an exclusive interview with CryptoSlate, Chief Executive Officer at SHOP, John Wantz shared his insights into the internal focus of the emerging decentralized commerce platform.
Empowering Shoppers Through Shared Value
Identifying a new market that enables shoppers and brands to mutually benefit from each transaction, the Seattle-based company seeks to capitalize on the lack of existing shared value on commerce platforms today.
Chief Executive Officer, John Wantz described the focal point of SHOP’s targeted consumer base:
“If you think about the total market cap of some of the largest companies in the world … these are companies that have built empires on the backs of data exchanging between brands and shoppers.”
SHOP aims to utilize the benefits of blockchain – secure, efficient data storage and transaction – to radically reshape the current, centralized state of internet commerce.
The decentralized commerce platform employs a democratic blockchain protocol to reorganize the retail supply chain and create a system of information exchange between those buying and selling products.
Wantz explained why he believes blockchain to be an opportunity for innovation:
“What got me into blockchain is it’s the only tech in the industry that will allow for data decentralization and that also allows for a tokenized economy, so that the brand makes the products and the shoppers that buy those products share in the value creation that’s made.”
How SHOP Works
The goal of SHOP is to realize a direct connection between shoppers, brands, and – preventing the middleman platform from using key consumer data to its sole advantage and democratizing the retail landscape.
The SHOP Shopper Wallet will act as the primary interface for users to manage and permission their data, facilitate payments on the platform, and view their profile.
The SHOP Business Wallet acts as a tool for sellers/brands to access their on-chain inventory management systems – offering details for products, stock units, orders, and purchases.
SHOP plans to mint its own native SHOP utility tokens to act as a vehicle of value, translating shoppers’ information into a quantity that can be exchanged by shoppers and sellers for access to discounted products and consumer information.
On SHOP’s business model and potential for expansion, CEO John Wantz explained:
“We think that’s what will attract brands. If we can help them make more money and combat some of the market forces that are incumbent, that’s an attractive proposition. So overtime, as the economy of scale grows and we have more and more brands inside of this vehicle… There’s a lot of others things that a co-op of brand and shoppers can do together. We’re specifically interested in the revenue growth from more demand generation, better channels, and greater loyalty.”
As a company focused on information value, SHOP is able to optimize its co-op members’ revenue models through increased demand and loyalty predicated on gathered consumer data.
For shoppers, this allows individuals to “sell” their information, which would be otherwise stored by centralized middlemen, directly to brands in exchange for cheaper products or services.
Enabled through decentralization, this mutually beneficial relationship provides maximum value to both shoppers and sellers in a retail environment.
Preparing for Launch
SHOP plans to unveil its platform for public use at the close of its token sale, establishing key partnerships and acquiring several companies to launch with utility for the token.
The SHOP Token is expected to launch on the Ethereum network as an ERC20 token, but the company has expressed interest in migrating onto other blockchains in the future.
Wantz elaborated on the partnerships and plans for blockchain migration:
“We’ve been working with the Microsoft Coco team for nine months … We have private access to a lot of where RChain is going … a public blockchain platform that intends to be extremely fast and scalable. We think Rchain’s performance in conjunction with their unique mechanisms is something that’s going to be pretty interesting to look at. So we’re partnering with them and looking at kind of how to use RChain and move off of Ethereum.”
In addition to ongoing collaborations with other blockchain projects, SHOP has acquired three companies – Comrse, FoxCommerce, and Kanga. They are unique commerce platforms that will enable SHOP’s platform to run at launch. Wantz explained:
“We’re coming to market as a utility token. With that said, we intend to have and have acquired some companies to ensure that we have utility day one … Those apps are up and running and we’ve migrated them so that they’re now running on a protocol.”
With a well-established team and acquisitions already in place, SHOP appears ready to meet the market with a fully functional decentralized commerce platform.
For more information on SHOP:
Cover Photo by Ali Yahya on Unsplash
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