Technological advancements have become the driving force behind transformative changes. From the early days of the internet to the emergence of social media and streaming platforms, we have witnessed a remarkable evolution from Web1 to Web2. However, it is the transition to Web3 that promises to bring about one of the most significant shifts in the online world with an emphasis on ownership.

Alexis Nicolaou, the Partner for Distributed Ledger Technologies at Grant Thornton, has been at the forefront of this digital revolution. In Future Talk’s 111th episode, he shed light on his organization’s blockchain initiatives and his journey through various technological advancements. 

Having spent nine years as a chartered accountant in London, he returned to Cyprus to work with Dias Media at Sigma TV, a Cypriot media organization. This marked a pivotal moment in his career as he stepped into the world of media and entertainment, requiring him to adapt to the new realities of this industry.

It was during this transition that Alexis first encountered the power of technological advancements. Being part of the team that developed Sigma Live, Cyprus’ first online news platform, he witnessed first hand the effects that digitization would have on advertising and its impact on the media landscape.

His journey into the world of technology continued when he delved into the realm of electronic banking. Contributing to the establishment of one of Cyprus’ first Electronic Money Institution (EMI), he realized the limitations of traditional banking systems and the gaps it left in its wake. These limitations and gaps would soon be exploited and filled by improved alternatives with the help of technological advancements.

The emergence of blockchain technology and cryptocurrencies presented a promising alternative that could potentially revolutionize how payments were conducted.

The turning point came when Alexis crossed paths with Antonis Polemitis, the CEO of the University of Nicosia (UNIC). Antonis championed the introduction of blockchain and cryptocurrency into academia, making UNIC the first academic institution globally to offer a Masters’ Degree in blockchain and cryptocurrency, of which Alexi is a graduate of.

Blockchain technology is also marking a critical milestone in the transition from Web2 to Web3 - the era of reading, writing, and ownership.

To better understand the progression, let's take a step back and examine the characteristics of each web phase. Web1 was primarily a network for information consumption, where users could only read and retrieve information. With the advent of Web2, users gained the ability to create and share content, giving rise to the age of social media and streaming platforms. However, Web2 had its limitations, as content creation and data collection remained largely in the hands of centralized platforms.

Web3, on the other hand, builds upon the foundations of its predecessors but emphasizes ownership. It introduces the concept of the metaverse—an alternate reality where individuals can create, own, and interact with their digital assets. Through blockchain technology and smart contracts, Web3 offers the potential for disruptive changes, particularly in terms of ownership and decentralized control.

Alexis' first major venture into blockchain technology was through the launch of a spin-off organization from the University of Nicosia, Block.co. While he believed that blockchain solutions were nascent in widespread adoption, the initiative provided Alexi with invaluable insights.  

One of the platforms they developed focused on securely storing academic certificates (and any other electronic document for that matter) on the blockchain—a tamper-proof solution that ensures the authenticity of these documents. The team created a blockchain-as-a-service (Baas) platform on Bitcoin and Litecoin blockchains.

To understand the mechanics behind blockchain, Alexis explains that it is a distributed database that maintains a continuously growing list of ordered records, called blocks. These blocks are linked using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. The level of security provided by this technology is unparalleled, requiring immense computational power and investment to breach.

Another platform developed by Alexis and his team focused on non-fungible tokens (NFTs) on Ethereum's blockchain and Polygon, a "layer 2" solution of Ethereum. This platform aimed at supporting brands in their use of NFTs as another tool in their marketing mix. NFTs enable brands to create a one-on-one direct relationship with their customers through a channel which the customer and organization can communicate freely. In doing so, organizations create unique relationships with their customers.

Companies could distribute NFTs to their clients as rewards for various actions such as purchasing a product, participating in social media campaigns, or completing questionnaires. This not only helps build a community but also provides organizations with valuable insights into their individual users on a one-to-one basis. As the era of third-party cookies is coming to an end, such direct interactions and ownership over data are becoming increasingly important.

Following his journey with Block.co, Alexis shifted his focus to the dedicated business unit for distributed ledger technologies at Grant Thornton Cyprus. Their mission is to build on the team’s expertise, to support clients and other network firms engaged with blockchain and other Web3 technologies and integrate them into their digital transformation strategy.

The team is engaged in several blockchain projects. One notable project involves harnessing the power of VeChain, the largest commercial blockchain, for which Grant Thornton Blockchain Cyprus manages one of the 101 master nodes. Through this project, they aim to provide decentralized and secure solutions for the occupational health and safety industry. By aligning their efforts with the United Nations' eighth Sustainable Development Goal, through technology, they strive to reduce accidents in this sector.

In March 2023, in cooperation with two additional parties, the Future Estate Alliance was launched—an initiative that enables investors, including those with smaller wealth, to invest across sectors such as real estate by tokenizing real estate assets. Real estate tokenization is a modern way of investing in real estate. This revolutionary concept, made possible with blockchain technology and smart contracts, has disrupted the traditional real estate industry by offering investors access to fractional ownership of properties.

Real estate tokenization converts the value of real estate into tokens stored on a blockchain, enabling digital ownership and transfer. These divisible tokens represent a fractional share of ownership stake in a specific property.

While regulatory frameworks are still being developed, the inevitability of blockchain technology adoption is becoming increasingly apparent. However, the slow pace of legislation and the cautious approach of banks in Cyprus pose challenges for widespread adoption.

According to Alexis, education is key in introducing emerging technologies to the wider population. Without a comprehensive understanding of the benefits and intricacies of these technologies, resistance or blind adoption may hinder progress. In this regard, the Future Estate Alliance aims to not only provide comprehensive solutions but also educate individuals about the potential of blockchain and its associated technologies.

As the digital landscape continues to evolve, the potential of Web3 and blockchain technology is set to revolutionize various sectors. From secure document sharing to decentralized ownership and transparent transactions, the possibilities are immense. With organizations like Grant Thornton Blockchain Cyprus leading the way, the adoption of blockchain technologies is poised to reshape our digital future, empowering individuals and businesses alike.

Watch the full episode here for a deeper dive into Alexis Nicolaou’s journey into blockchain technologies.