What excites me about blockchain is taking back control of our personal data Emiliyan Enev from ReCheck on using blockchain to take control of personal data
These days, securing important data from operations is a big must when running a business. Blockchain is a technology developed to keep all transactions and pieces of information in a decentralized and secure way. It happens without the need for a third party during the process of recording data that shapes the innovative function of the blockchain. That makes the technology a potential game changer in the startup industry, as many companies around the world use it to manage information securely.
In Bulgaria, blockchain is still not widely recognized, as the application is still far away from the local ecosystem. However, there are entrepreneurs who are trying to implement blockchain in a beneficial way for the entire Bulgarian economy. One of these people is Emiliyan Enev, a blockchain lawyer and a motivated entrepreneur from Russe, Bulgaria.
Emiliyan is the co-founder and CEO of ReCheck, a blockchain startup located in Limburg, Netherlands, that specializes in providing businesses with future-proof blockchain solutions. In an interview for The RecursiveEmiliyan spoke about blockchain use cases and the future of this technology.
The recursive: can you share how your path in entrepreneurship started and how you became a blockchain champion?
Emiliyan Enev: It all started 12 or 13 years ago. I wanted to develop the local ecosystem and follow the example of Sofia, and show that the startup ecosystem environment can also be built in other cities. I met other entrepreneurs with whom I shared some ideas and discussed possible future projects.
One of the first startups I launched was in mobile marketing and location-based marketing. InfoZone is a mobile app close to Google Maps that helps you find some places nearby and check offers and events from such places. We then sold this project to UniCredit Bank and it was a small exit.
After that I started StartUp Factory, an NGO association, and about 5 or 6 years ago we launched ReCheck, a blockchain startup. We believed that blockchain is a game-changing technology that will have many real-world applications in the future. We decided that blockchain is good for proving these physical products and creating a digital representation of physical projects on the blockchain.
As your company ReCheck helps businesses grow in both profitable and sustainable ways, can you tell us what role blockchain plays in solving real business problems?
Blockchain is good for such processes and use cases where secure data exchange, traceability, automation and transparency are important. The digital ledger technology plays an important role as a layer and component on top of existing platforms that enables real ownership of data and direct exchange of value between users.
I believe that before web3, we need to achieve web2.5 – the interweaving and integration of blockchain into existing systems. What’s exciting to me is the opportunity to take back control over our personal data and decide what information we share with whom, as well as get a direct return on the content we generate. The other option is to have ownership of the platforms and products we use, thereby getting a share of the value they generate.
What are the potential use cases of blockchain technology that you think no one is discussing yet?
Few people talk about the so-called Token gate and car passes on the blockchain. Token gating will become the standard for managing loyalty programs, where the most important customers and fans will receive NFTs through which they will unlock exclusive content and experiences. At the same time, property and vehicle passports are an opportunity to create a reliable history on the blockchain of the condition, improvements and registrations of assets. This history and data will also determine the asset price.
In what way do you think the regulation of cryptocurrency might affect the development of blockchain technology and its applications?
Regulations will certainly have a strong effect on that. On the one hand, they protect investors and consumers. But on the other hand, they can be a brake on innovation and create barriers for start-ups and small businesses. It is important to me that the regulations are from the bottom up, not imposed from above, and that it does not only privilege the big players.
In your opinion, what problems with the modern monetary system can cryptocurrency solve?
Centralization, high transaction costs, use of financial institutions for political purposes (e.g. opportunities for seizure, blocking of funds) etc.
Can you tell us what are the two biggest risks of investing in crypto? And what should not stop us from doing so?
The main risks are related to the search for quick speculative profits, trusting rumors and manipulations, lack of serious research and underestimation of security protection. There is a need to invest in projects that are truly decentralized, with a good technology foundation and a team with a proven excellent reputation. You also have to think long-term.
Can you point to the main cause of the recent crypto crash and how you see this developing going forward?
The reasons are related to fundamental vulnerabilities and weaknesses of the algorithmic stack coins, the changing macroeconomic environment and monetary policy (interest rate hikes), the lack of liquidity and free money to invest in cryptocurrencies, and the overvalued levels of many tokens.
As long as there is a restrictive monetary policy and high interest rates, it will be difficult to see an improvement in cryptocurrency prices. I expect a few notches to dominate in the coming years and their token prices to maintain a higher price. Altcoins will have almost no value.
How do you think investors will be able to recover from the crypto crash? What long-term effects can you predict?
Those who have a long-term strategy, do not seek speculative high returns and invest with good knowledge of the basic characteristics and advantages of the protocols will recover. The long-term effects are linked to the application of blockchain to real-world use cases and the success of value-creating projects.
What advice can you give to young Bulgarian entrepreneurs?
It’s about being persistent, proactive and embracing the pain. This is not something you hear a lot, but accept that it will be difficult to do business here. It is important to find the faith that will give you the energy to work and the direction to go.
For me, it’s important to be realistic and honest with yourself, and accept that you’re building a business that will grow and emerge over the next, maybe 10 years, so patience is also essential. I would add that entrepreneurs need to be determined, listen to their intuition and do what really inspires and energizes them. Success does not come easily, it takes many years of struggle and effort before results come. Enjoy the process.
You have established Startup Factory in your hometown Ruse, can you tell why you decided to do so and what results you observe?
We created Startup Factory because I believe that developing the entrepreneurial ecosystem is key to the local economy and that it is important to support early stage startups. I believe in synergies, in a culture of helping, sharing knowledge and returning value.
I also learned that there was a shortage of digital and soft skills and we looked at courses in these areas. The results are people who retrained, started working in digital companies, more startups, a lot of enthusiasm and an environment of mutual support.
