The world’s most advanced pet community will use next-gen tech to improve the lives of pets but it’s also treating investors to a truly novel revenue model. A painful irony at the heart of nearly all blockchain projects lies in the contrast between it’s highly redundant, distributed technical infrastructure and its singular source of operating revenue: some form of a usage toll.
In scanning the Blockchain top 10 list, only one — Ripple — can claim to earn revenue from a source other than a fee based on the use of its network or asset. In Ripple’s case, they sell software that enables clients to use its cross-border settlement asset, XRP. This offers essentially no diversifying benefit because if one fails, the other is useless.
Unfortunately, this serves as the high water mark for the “major” Blockchain networks in regard to business models. This fact has remained relatively inconsequential in the eyes of investors thanks to the resilience owed to the network effect. This resilience is not diversification, however.
Pawtocol’s revenue model is arguably one of the most diverse in the industry. While it’s true that a portion of revenue is sourced from the usage of the ecosystem, the similarities end there. At roughly 35%, transaction fees are not even the largest source of revenue for the company.
The next segment we’ll cover are fees from the data marketplace, which at first blush appear to be just another type of toll. What makes it unique is the fact that it’s levied against an operation that exists nowhere else: the ability for a person to sell data that a traditional software product simply appropriates. Presently, anyone with a financial footprint in the United States sees precisely 0% of the profit that, for example, Experian enjoys selling data describing the constituents of its database. A similar indictment can be made of nearly every big tech company.
Pawtocol is upending this model and in so doing, creating a truly unique opportunity for its investors. This is because no one — the Pawtocol team included — can claim to know the monetary value of data under this model.
The Pawtocol financial team has conservatively estimated this segment at roughly 15%, but a property of data is that its value is effectively unbounded. The value of a given dataset is based on the outcome of its application and this outcome depends on the tools with which it can be analyzed, which is a field of technology that is advancing at an astonishing rate.
This brings us to the lion’s share of Pawtocol’s income: sales of its specialized line of integrated hardware. This first in the suite, is a Generation 1 Blockchain Dog Tag, which serves as the unique ID for all pets on the platform. Soon to follow is a significantly enhanced version that will employ batteryless Bluetooth technology, opening the platform to new levels of connectivity and opportunity. Perhaps the most powerful tool Pawtocol will offer its users is the PAWS scanner, a device utilizing spectral photometry to analyze the chemical make-up of things such as food and supplements. For veterinarians, Pawtocol will integrate with the point-of-care devices they’re already accustomed to using in the treatment of their patients. These products, and several others under development, will yield nearly 50% of the company’s overall revenue.
When one also considers the market sector Pawtocol serves, this project should be viewed as a breath of fresh air for fintech investors. The pet industry is expected to grow at 5% annually, exceeding $200B by 2025, and Pawtocol’s diversified approach to building it’s business positions it to capitalize on this growth in a way that no other pet-oriented business can claim.
*This release contains “forward-looking statements” within the meaning of securities, consumer protection and other laws in various countries, states, provinces, and jurisdictions. Such forward-looking statements involve risks and uncertainties. Actual results could differ materially from those anticipated. Pawtocol makes no warranties, guarantees or representations with regard to the accuracy, completeness or suitability of the information presented, and readers hereof waive any warranties implied by law or otherwise. Viewership of Pawtocol’s statements or materials, or participation in Pawtocol’s IEO, may be restricted by law in various countries, states, provinces, and jurisdictions. Viewers of this release assume all responsibility for compliance with such law and assume all liability in connection with any participation in Pawtocol’s IEO, each of which are disclaimed by Pawtocol.
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