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Web3

What Do Brands & Agencies Need to Know?

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Do Your Own Research

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Agenda

[what does it mean for you]

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  1. Overview - basics (PP)
  2. Wallets & identity (PP)
  3. NFTs
    1. Overview
    2. dave.lockie@automattic.com
    3. send
    4. Send message
    5. 4:30PM
    6. Digital Art (Art Fi) - e.g. https://www.moma.org/magazine/articles/658 (PP)
    7. Punks, BAYC, Adidas (DL)
    8. SportFi - NBA Topshots, Sorare (DL)
    9. GameFi - Axie, Parallel, p2e, p2o (PP)
    10. Additional use cases brief (PP)
  4. Metaverse - Meta, Fortnite, convergence (DL)
  5. DeFi - UNI, Sushi, etc (PP)
  6. DAOs, governance, grants - Gitcoin, ConstitutionDAO (PP)
  7. Airdrops - ENS, UNI (DL/PP)
  8. Discord & community building - beer.eth (DL)

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Overview and Basics

  • Blockchain is a distributed ledger that keeps track of records
  • Ethereum was the first programmable currency which used autonomous code applications called smart contracts
  • Benefits of Blockchain
    • Transparent
    • Trustless
    • Tamperproof
    • Solves the double spend problem - Digital scarcity
  • Popular networks/chains - Bitcoin, Ethereum, Polygon, Avalanche, Solana
  • Vocab
    • Solidity/EVM Compatible
    • Dapps
  • Principle of composability

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Wallets and Identity

  • A wallet is needed to send and receive any assets on the blockchain
  • Leaders in the space are Coinbase, Metamask, and Ledger
  • Digital identity tied to an address
  • Proof of ownership tied to wallet address

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NFTs

  • Non-Fungible Tokens
  • Traits
    • Unique
    • Indivisible
    • Indestructible
    • Absolute Ownership
    • Verifiable
  • Marketplaces
    • OpenSea
    • Rarible
    • Nifty Gateway
    • Specialized marketplaces

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Digital Art

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Digital Art Benefits

  • Digital Scarcity
  • Empowers Creators
    • Proven ownership and creative rights
    • Enforced Royalties
  • Can be tied to real world art
  • Can be algorithmic / generative

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Collezione Genesi by Dolce & Gabbana

The Doge Crown

The Dress from a Dream

The Glass Suit

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GameFi

  • P2E entirely on Blockchain
  • Moving towards AAA games integrating blockchain and NFTs
  • Asset portability

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Metaverse

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DeFi

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Different DeFi protocols

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DAOs, governance, grants

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DAOs - Decentralized Autonomous Organizations

  • An alternative to corporate entities
  • Tokens often represent governance rights in a DAO rather than equity (= a security)
  • DAOs usually have power because they control a treasury
  • Governed by community via voting against proposals
  • Proposals with the majority vote are funded
  • Not without challenges!

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Grants

Grants are set aside to fund projects in the blockchain and web3 space. Gitcoin Grants is one of the biggest names in the space:

  • They sustain web3 projects through quadratic funding
  • A sort of crowdfunding mechanism that distributes optimising for smaller contribs from more people

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Airdrops

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Successful airdrops

  • Tokens are ‘dropped’ into user wallets
  • Users share success and can participate in governance
  • Uniswap airdrop famously worth far more than stimulus cheques
  • Ethereum Name Service (ENS) - imagine GoDaddy sending you $5k just for using their service to register domain names

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Discord & community building

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Takeaways

  • Crypto companies are both rich and need to accomplish a lot = opportunity
  • Crypto & web3 require deep re-evaluation of many assumptions and mindsets
  • Chris Dixon’s 5 mental models are useful to understand the importance of Web3 - would recommend reading
  • If communities become economies, what’s your community play?
  • Some brands will pivot (Visa, Square, etc), some will lose out
  • What’s protocol, what’s product?
  • Composability matters

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Do Your Own Research

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Fin

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Questions to consider

  • What is your NFT strategy?
  • What would your ecosystem look like as an economy?
  • What are likely DAOs to form in your industry?
  • Should you be allocating a % of profit to a crypto fund?

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Chris Dixon’s 5 mental models

  • “It’s just a toy” (why are new technologies dismissed?)
    • New technology does not need to immediately solve problems
      • Innovation is a multi-step process, not a direct simple thing
  • Web 3 (is the crypto community creating a whole new era of the Internet)
    • Web3 is the internet that is owned by builders and users, orchestrated with tokens
      • “It is a participatory process and the key thing now is getting more talented people into the space”
  • Tokens as the new websites
    • Tokens are the first thing on the Internet where a user can truly own something (altho not a legal contract)
      • Allow the concept of digital ownership - can be a thing, a piece of media, game utility, an avatar, code, etc.
  • “Your take rate is my opportunity” (the transition from Web2 to Web3)
    • Companies like Substack and Patreon are the early precursors of the new economic potential of online
      • More and more creators will realize that they can opt-out of the Web 2 monetization scheme
  • Networks becoming economies
    • Web3 allows the overlay of economic tools onto existing communities
      • A new era of self-determinism for all sorts of people

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Additional NFT Use Cases to Consider

  • Music
  • Credentials (med, education)
  • Tickets and memberships
  • Luxury items (authenticity)
  • Property & Real-Estate
  • Supply Chain
  • Perks & Redemptions