In the midst of an ongoing regulatory crackdown on the crypto industry players like EthSign and the challenges faced by some prominent players, the foundational decentralized technology continues to draw established internet platforms towards the realm of web3. Telegram and Line, two globally popular messaging apps boasting hundreds of millions of monthly users, have recently embraced crypto functionalities. One notable addition is e-signing, facilitated by a startup named EthSign.
EthSign launches e-signing on Telegram and Line
EthSign, based in Singapore and supported by all three divisions of Sequoia—Sequoia Capital, Sequoia Capital India, and Sequoia Capital China (now HongShan)—aims to establish a web3 equivalent of widely-used services like DocuSign. The promise is an added layer of transparency and trustworthiness, seeking to convince users that blockchain-based contract signing surpasses traditional methods. Explaining the advantages, the firm’s CEO Xin Yan, a former strategist at Huobi’s centralized exchange, highlights the ease of authenticating the identity of signing parties and tracking their interactions with a signed document.
Notably, the decentralized nature of blockchain technology addresses the risk associated with the shutdown of a traditional e-signature service provider, preserving the record of users’ signatures. Immutable data, a core feature of blockchain, further enhances the appeal. Once a document is signed, the information remains unchangeable—a valuable characteristic in the world of digital agreements. EthSign is deployed on the respective blockchain networks associated with Telegram Line—TON and Finschia.
Users can connect their crypto wallets to these messengers, initiating the signing process through EthSign, akin to using DocuSign. Already operational as a mini app on Telegram, EthSign notifies users of pending documents for approval. When opening a contract, users are prompted to connect their crypto wallets and sign at the document’s bottom. EthSign requests access to users’ wallet addresses to generate tamper-proof signatures on the blockchain.
A paradigm shift in the technology sector
EthSign aligns with the broader web3 trend on TON, Telegram’s blockchain partner, as the messaging giant aims to evolve into a super app akin to WeChat. On Line, EthSign, functioning as a web app, has inked a memorandum of understanding with Finschia for further integration shortly. While the concept of immutable signatures on messaging apps isn’t entirely new—illustrated by the 2018 launch of “Little Protocol” on WeChat, enabling users to bind agreements to their WeChat IDs and recording them on Ethereum—EthSign’s approach signifies renewed interest.
EthSign has already garnered connections to approximately 250,000 unique wallet addresses. Currently, it operates on a free-to-use model. However, the long-term vision diverges from the traditional Software as a Service (SaaS) model that relies on subscription fees. Instead, EthSign aims to transform into an attestation service platform, monetizing through charges for attestation, verification, and other user activities. Yang noted that to attest information on-chain is to bring trust to the on-chain world, where the most promising use case is a vampire attack.
This reference to the web3 phenomenon underscores the importance of trust in a space where users might be enticed into a forked version of an established crypto project offering enhanced incentives. EthSign’s integration of crypto features into popular messaging platforms reflects the growing influence of web3 technologies. As blockchain continues to permeate various aspects of digital interaction, the adoption of decentralized solutions for tasks like e-signing signifies a shift towards more transparent, trustworthy, and resilient processes in the evolving landscape of digital agreements.
