MYEG poised to unlock blockchain potential

KUALA LUMPUR: My EG Services Bhd's venture into blockchain is expected to pave the way for mid-to-long-term growth, in addition to organic expansion from its existing business segments, said MIDF Research.

"We opine MYEG to monetize Zetrix via charging gas fees on transactions, tracking fees on the supply chain traceability, as well as transaction fees on cross-border trades," it added in a note.

While the research firm has maintained its earnings estimates given the venture is still in its pilot stage, it expects further upsides to its estimates upon materialisation.

"All in all, we maintain our BUY call on MYEG with an unchanged target price of RM1.21," said MIDF.

In a statement yesterday, MYEG said its Zetrix blockchain had completed the foundational development for its Layer-1 blockchain functionalities and will launch its mainnet on Friday.

The Layer-1 infrastructure will host applications, protocols and networks to be deployed on top of its proprietary smart contracts and Proof-of-Stake (PoS) consensus mechanisms across a network of validator nodes, it said.

Zetrix is the international extension of Xinghuo BIF, China’s largest national-level blockchain network supported by all levels of the Chinese government and running both governmental and commercial applications.

It is a collaboration between MYEG and Beijing-based Bubi Technologies which provides the backbone infrastructure and supernodes outside China that integrates with Xinghuo BIF.

MYEG’s recently launched NFT marketplace, NFT Pangolin will be one of the first applications to be hosted on Zetrix and will introduce Zetrix-minted NFTs on the platform.

"Compared to the expensive costs associated with Ethereum, Zetrix will provide lower minting charges and gas fees to encourage more artists, traditional and digital alike, to explore the potential of blockchain and a new platform as a means of showcasing and trading their work," said MYEG in its statement.