Whitepaper(Web Version)

3. World’s largest marketplace capable of covering all commerce

(1) Global marketplace specifically for customer activity data and networks

In conclusion, when the Social Good Ecosystem™ is viewed from the perspective of the distribution of goods and services, Social Good has the potential to become the world’s largest retail company.

Like Google, Amazon, and the Apple Store, the Social Good service is a marketplace business model for so-called B-to-C matching.

By networking travelers and rooms globally via smartphones, Airbnb was able to expand the number of rooms better than the world’s largest hotel chains. By networking riders and vehicles globally via smartphones, Uber was able to expand ride opportunities better than the world’s largest taxi companies.

Just as Airbnb and Uber have strived to increase matching accuracy simply by owning intangible assets, such as customer data (attribute information and behavior histories) and networks, without owning tangible assets, such as rooms and vehicles, Social Good is making efforts to increase the accuracy of matching consumers and companies by owning big data and networks without owning real stores and EC sites or hiring salespeople.

Social Good, which recommends optimal products via AI from among the Social Good networks without owning specific EC sites and stores and without hiring sales people, functions as the ultimate shopping supporter.

Because Airbnb and Uber do not own the means for providing services, such as vehicles and rooms, they are referred to as sharing economy companies.

From this perspective, Social Good does not have property, such as EC sites, stores, salespeople, or retail salespeople. It can be referred to as “a sharing economy company for all goods and services around the world.” From this position, it has the potential to become the world’s larger retailer in terms of total distribution.

(2) “Decentralized Amazon” business model

Social Good optimizes purchasing via a marketplace that networks all companies and products with consumers by means of blockchains using smartphones as interfaces.

Amazon’s centralized model and Social Good’s decentralized model

Amazon is a centralized retail store for neatly indexing individual products, such as books, CDs, home appliances, and daily necessities and delivering products based on customer orders within a format that is unified, normalized, and standardized as an EC site. It is a format for selling many products via a single store.

By contrast, a major characteristic of the Social Good Ecosystem™ is that, unlike Amazon, it allows real stores like jewelers, face-to-face businesses like realtors, businesses that do not deliver goods like lawyers and hairdressers, and EC sites to participate in the ecosystem marketplace as stores. It is the format of a decentralized mall with many Social Good stores.

The first motivation for companies to join the Social Good Ecosystem™ is, just like the motivation to register with cash back sites, the acquisition of new customers via the expansion of touch points. For example, more than 2,000 companies have registered with the large US online cash back site EBATES, and the net sales of these companies are growing at an annual rate of 45%. The site’s transaction volume is $9.7 Billion (FY 2017).

The Social Good marketplace has expanded this type of cash back mechanism to not only EC’s but also real sales channels (negotiations via stores and salespeople) and uses smartphone-based UI/UX and blockchain technology.

The second motivation for companies to join the Social Good Ecosystem™ is to differentiate themselves from similar competitors with the aim of breaking away from price-cutting competition.

Making cash back payments in cash and electronic points alone leads to price-cutting warfare. Paying benefits to customers in the form of a cryptocurrency having asset properties that can reasonably be expected to appreciate in value provides a new user experience that differs from that of simple discount points.

(3) Simple customer interface based on smartphones

When seen as a commercial service, SocialGood is a “service where cash back payments can be received via a single touch on a smartphone.”

When SocialGood holders contact stores, salespeople, or EC sites to buy products, they can receive a portion of the price of those products in SocialGood denominated cash back payments through the Social Good Center.

In the process (in the case of a real alliance company, sales of real estate, vehicles, etc. through salespeople and in the case of the service industry), a SocialGood holder can receive a cash back payment by taking a photo of the receipt using a smartphone and then sending the photo to the Social Good Center from the Social Good specialize app on the smartphone.

For Social Good alliance businesses there are no system investments, no running costs, and no start- up costs.

All these businesses must do is wait for customers to be sent by the Social Good Ecosystem™, which is a network with smartphones as contact points, and pay successful outcome fees to the Social Good Center when they sell products.

Alliance companies that are EC sites can automatically link on-line to provide cash back payments after products are purchased.

The Social Good Center converts these fees into the SocialGood cryptocurrency and provides cash back payments to customers. Since payments using cryptocurrencies can be made via global money transfers, they are smoother than payments using conventional legal currency. Software patent applications for this technology, based on blockchain technology, have already been submitted (Japanese and US patents). This is similar to when Amazon was awarded a “one-click patent” in the early days of EC. This is a powerful intellectual property strategy precisely because it is simple.

In the future, blockchain technology that enables purchases, donations, and cash back payments in real time will be used.

(4) Enhanced matching accuracy using AI recommendation engines crossing real life and the net

By analyzing SocialGood holder buying histories and big data using AI, Social Good develops recommendations that span real life and EC by, for example, “recommending Store B to a person who purchased Magazine A.”

Enhancing the performance of AI recommendations increases buying frequency within the Social Good

Ecosystem™, which results in increases in SocialGood denominated cash back payments. If this results in tighter SocialGood supply and demand, the SocialGood price can reasonably be expected to increase.

Since more consumers will join the Social Good Ecosystem™ as the asset properties of the SocialGood are enhanced, alliance companies will see more opportunities to acquire new customers.

(5) Cash back payments in cryptocurrency based on market value (Business Model Patent)

The “Social Good Center” makes cash back payments to SocialGood holders. The Social Good Center is an operating company that conducts cash back business in each country and is a separate company from the Social Good Foundation, which issues the cryptocurrency (“Managing Companies” described below).

The Social Good Center and alliance companies determine their own cash back rates in advance. SocialGood holders can receive a portion of product prices in the form of SocialGood denominated cash back payments each time they make purchases at Social Good alliance companies.

For example, given a cash back rate of 10%, a SocialGood holder making a 10 Million yen real estate purchase would receive SocialGood equivalent to a current market value of 1 Million yen from the Social Good Center.

A portion of the money paid by SocialGood holders is converted into cash back payments through the Social Good Center

In the future, cash back payments will be executed using Ethereum Smart Contracts developed by the Social Good Foundation without mediation by intermediaries, and cash back rates will be disclosed in the smart contracts for each alliance company to preserve transparency. In other words, we are targeting a decentralized cash back network.

As stated above, we have already submitted patent applications for this cash back mechanism utilizing cryptocurrencies in Japan and the US as software patents based on blockchains in January 2018, and the International Patent in accordance with PCT in September. In addition, we are making the preparations needed to start the current services and will pursue separate patents for new elemental technologies.

The cash back payments SocialGood holders will receive have the following characteristics.

1. As long as they hold a certain amount (e.g., one SocialGood) of SocialGood, they can receive cash back payments. If holders hold two SocialGoods, they cannot receive twice the cash back payments of a person who holds one SocialGood. Cash back payment is a right granted to anyone with SocialGood holder status.
2. The longer SocialGood is held, the higher the cash back rate becomes.
3. The cash back rate rises according to purchase frequency and purchase amounts within the Social Good Ecosystem™.

Holders are incentivized to hold SocialGood over the long term through a variety of other customer loyalty programs (e.g., silver memberships, gold memberships, etc., like credit cards). As a result, long- term holders of SocialGood will increase, which will, an explained next, tighten supply and demand such that the asset value of SocialGood can be expected to rise.