In other words, they will provide unique solutions to contemporary challenges in business, finance, regulation, and more. Here are six key potential use cases for Solana’s token extensions:
1) On-Chain Payroll, B2B Payments, Treasury Management
Solana’s token extensions can facilitate seamless on-chain payroll systems, allowing businesses to automate and streamline salary distributions. They can also be used for Business-to-Business (B2B) transactions, enabling quicker, more efficient, and transparent payments between companies.
Some DAO payment tools worth checking out ??@paymagic_ ???API to handle on-chain payments
@Coinbooks_ ?? Intuit for crypto@utopialabs_ ? Collaborative payroll + payments ?? benefits for the benifitooorrs@parcelHQ ??PaymentOS for the contributor economy
— Bryan Altman (@altmbr) April 15, 2022
Additionally, these extensions can aid in effective treasury management by providing tools for better liquidity management, risk assessment, and asset optimization.
2) KYC Verification, Token-Gated Access, Royalty Enforcement
With the implementation of Know Your Customer (KYC) verification processes, Solana can ensure compliance with regulatory requirements and enhance security. Token extensions can also be used to create token-gated access systems, where access to certain services or products is restricted to token holders, thus adding an exclusive layer to services. Here is an example:
#ReserveX: a powerful customer retention tool, is set to redefine how brands engage with their customers. By creating token-gated product experiences, loyal customers are rewarded with exclusive access to products and perks, all without complicated code or applications. ???? pic.twitter.com/UuEHZTIBL3
— crypto-mft.eth ??? (@Crypto_MFT) May 24, 2023
Furthermore, these extensions can enforce royalty payments, ensuring creators receive their dues automatically whenever their work is used or resold.
3) Permanent Royalties, Publisher Fees, Transaction Fees
Solana’s token extensions can embed permanent royalty structures into tokens, ensuring that creators continue to receive compensation for their work over time. They can also be used to automatically collect publisher fees, providing a continuous revenue stream for publishers.
Immutable X rolls out a tool for enforcing NFT royalties on Ethereum#NFTcolletion#NFTGiveaways#NFT2049#NFTcollectible#crypto#cryptonewshttps://t.co/sY7JJQ7XFa
— Optimisus (@Optimisus_media) November 4, 2022
Additionally, transaction fees can be programmed into tokens, creating a sustainable model for service providers.
4) Automatic Subscription Services, Real-World Asset Updates, Stablecoin Compliance
These extensions can automate subscription services, enabling businesses to charge and renew subscriptions without manual intervention. They can also update real-world assets to reflect changes in ownership or status in real time. Here is an example:
Bringing “real world assets” on-chain has the potential to exponentially increase the size of the crypto market. A useful tool for monitoring which protocols are successfully tokenizing “real world assets” is @rwa_xyz
Video demo below:
1. Go to https://t.co/3bnKlJqx6X
2. View… pic.twitter.com/yI4LrzrrIP
— Patrick Scott | Dynamo DeFi (@Dynamo_Patrick) May 31, 2023
In the realm of stablecoins, these extensions can ensure regulatory compliance by incorporating features like freeze and seize orders, necessary for adhering to legal requirements in various jurisdictions.
5) Token Verification, Accounts Receivable Attribution
Token verification via extensions ensures the authenticity and legitimacy of tokens, which is crucial in preventing fraud. Here is an example:
Vulcan is the most secure, powerful community management tool for web3 teams:
? Instant Token verification
? Sales bots
? Support tickets
? Captcha
? Member intelligence dashboard*
? Floor Bot*
? Art Bot*
? In-Discord @PREMINT Raffles*
& much more coming.
*private beta pic.twitter.com/IpqjrGuHrA
— Vulcan (@VulcanAuth) April 18, 2023
Additionally, they can attribute accounts receivable, enabling businesses to track and manage receivables more efficiently and transparently.
6) Managing External Databases, Non-Transferable NFTs
Solana’s token extensions can manage external databases, ensuring on-chain actions reflect off-chain, and vice versa. This is particularly useful in supply chain management and logistics
Soulbound Tokens vs. Non-fungible Tokens
Unlike NFTs, SBTs are designed to be permanent, non-transferable tokens that allow individuals to verify their personal credentials on-chain.
Here are some other key differences ?? pic.twitter.com/MbIJmuhEnI
— BINANCE (@binance) December 6, 2022
Furthermore, they can create non-transferable NFTs or other assets for use as certifications, licenses, or memberships that users should not transfer.
Solana’s token extensions present a versatile and powerful toolset for various applications across multiple sectors. From financial services and digital rights management to regulatory compliance and asset management. These extensions offer scalable, efficient, and innovative solutions.
As the blockchain ecosystem continues to mature, the potential applications of these extensions are only limited by the imagination of developers and the needs of the market. This article was inspired by this
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
