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By changing the times and economic dynamics of the modern consumer, customers today are less likely to pay large amounts of products or services in advance. Instead, they believe in paying small regular installments, rather than paying the full value of a product to own it. In many ways, access the property of triumphs.
The Rise of the Subscription Economy
Bearing witness to the upward trend of the subscription, the business model of the subscription has been implemented in various fields, including e-commerce, transport and media. This increase in subscription-based models has given consumers access to products at all levels, whether it's a luxury item like bags and clothes for everyday objects like razors.
By transforming this model into figures, the subscription economy has boasted more than 11 million customers in 2017 for the Business-to-Consumer (B2C) segment, and there were more than 2,000 B2C companies that used the on subscription in February 2018 relationship from PYMNTS.
If you take the same metrics into account from 2014, customer visits to these subscription-based websites have increased by 800%, with a total of over 37 million visitors. McKinsey & Company, an American management consulting firm, found similar results in its study conducted in February 2018. According to the survey, 15% of online shoppers had subscribed to an e-commerce subscription in 2017.
Bring Blockchain and subscriptions together: presentation of ERC-948
While the boom in subscription business models was visible, ConsenSys, a Ethereumfocused development study, published an article that shared insights on a proposed Ethereum token protocol ERC-948. The article discussed the integration of subscription services on the blockchain.
The idea of ERC-948 was advanced by Kevin Owocki of Gitcoin. The concept quickly caught the attention of many as the merger between the blockchain world and subscription services seemed like a viable alternative to legacy financial systems.
Owocki took this idea for GitHub and published a thread titled "Recurring subscription models are a good thing and should be feasible on Ethereum (Merit + Architecture ERC) # 948" where they presented the new community feedback standard.
Discussion and valuable input have led to a variety of ways in which the protocol could be implemented. Some discussions have also proposed the use of the ERC-20 token protocol for the subscription service. However, the ERC-20 protocol was not created with the intention of facilitating subscription-based services.
The ERC-948 protocol is the solution for EIP-1337
While the proposal provided a roadmap for developers to develop a platform on which the subscription-based business model could be set up, it remained a mere discussion and little progress was made.
Since the discussion, however, the Gitcoin team collaborated with some members of the Ethereum community and started working on a subscription service on the network blockchain.
The team took a series of standards from discussions within the ERC-948 working group and introduced EIP-1337, which initiated the first subscription payments on Ethereum. Many members of the subscription work group contributed to the development of the EIP-1337, with contributions from Austin Griffith.
In September 2018, Griffith published a proof of concept framework for subscription services on GitHub. The report described the underwriting standard extensively and emphasized the use of lightweight subscription contracts that the publisher would implement.
Advantages of EIP-1337
The crux of the subscription model is that the user can "disable" it at any time, preventing the user from committing a large sum of money in advance. Apart from this, the user
- You do not need to use highly technical white papers to use Däpp of; with EIP-1337, users can skip this process.
- You should not waste time understanding the founders' philosophies, their investment programs and any other cryptic economic expedient other than the use of the dApp.
- It has the power to cancel or cancel the subscription at any time.
Benefits of the dApp founder
- The founders enjoy substantial cash flow as they now have access to data built around subscribers and conversions.
- Greater attention to customer satisfaction as it allows founders to focus on quality of service and user experience.
- Using a proven and proven business model over time.
Advantages of the ecosystem
Creating blockchain support for business models and proven systems such as subscription services is an uncompromising project for Ethereum. On-chain subscriptions provide a healthy alternative to token models, while pushing the much-needed UX conversations, including meta-transactions.
The road ahead
While the launch of EIP-1337 a Devcon it was a great success, Gitcoin does not see the time to apply this standard to open source development. In addition, he announced his plan to develop Gitcoin Grants in a project called "EIP-1337 applied to the Open Source".
The move will allow users to make recurring contributions to their favorite open source software projects on blockchain. Gitcoin grants offer an excellent opportunity for developers to generate income and stay motivated. It will also offer founders and developers with a stable cash flow.
The formation of EIP-1337 and the launch of Gitcoin Grants, allow open source blockchain projects to focus more on work towards their vision of a better future.
Will EIP-1337 be a killer token? Is this the end of the tokens? Let us know your opinions in the comments section.
