MyEG to unlock blockchain potential

PETALING JAYA: My E.G. Services Bhd (MyEG)’s foray into blockchain is poised to pave the way for mid-to-long-term growth, above the organic growth from existing business segments.

This comes following the completion of its Zetrix Layer-1 blockchain functionalities and slated to be launched by April 15, according to MIDF Research.

The research firm expects MyEG to monetise Zetrix via charging gas fees on transactions, tracking fees on the supply chain traceability, as well as transaction fees on cross-border trades.

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.

Notably, MyEG recently launched a non-fungible token (NFT) marketplace, known as NFT Pangolin, which will be one of the first applications to be hosted on Zetrix.

“NFT Pangolin is a global marketplace for creators to issue and sell their unique crypto-secured digital collectibles.

“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 MIDF Research in a report.

Nonetheless, the research firm said it was maintaining its earnings estimate at this point as the project is still in the pilot stage.

“Once materialised, it could provide further upside to our estimates. All in all, we maintain our “buy” call on MyEG with an unchanged target price of RM1.21,” it added.