NFTs 2.0 in action: utilities, examples, and paradigm shifts

Transcript

[Music] foreign [Music] hello everyone I'm very happy to see you in such a large number thank you for coming I'll be briefly talking about reputational avatars and other nft 2.0 magic that we've come up with in the form of new ethereum well evm standards that we would like you to use as soon as possible so that we can grow this ecosystem together um I want to encourage you to ask questions during the talk I don't want you to wait until the end so feel free to interrupt me if there's something unclear um and I will do my best to answer it but I will speed through this so that we

can discuss use cases and basically get into some you know conversational Parts uh really quickly so really briefly about me my name is Bruno I founded remark rmrk.app we basically created standards that we call nfts 2.0 they're individual separate Legos that work Standalone really well but when you combine them together you can really create truly impressively complex nft scenarios that are nonetheless compatible with old Legacy marketplaces in 721 so really using these standards is like walking into a car shop where there are two exact cars that cost that cost the exact same amount of money they look identical only one of them can also

fly and go underwater so there's no reason not to get this one even though you're not going to be flying a lot or going underwater but why not be able to do it right um so and and this focus in particular focus is about reputational avatars because that's a very obvious use case that people can relate to especially because during bear markets governance turns into Le garbage um you end up with a lot of greed and a lot of panic from core Founders or holders of the of the tokens who then want to hijack the Dao and a lot of the dials end up being captured which is actually easily solvable and well in theory I want this to I want to deploy this into practice and it's going to happen in Q4 of this year right now

we're running some prototypes and they're looking good so to backtrack a little bit on nft 1.0 is just a you know static piece of media usually um if it needs to be dynamic it's usually hosting metadata on a centralized server which is then rugged and replaced with something else and that's dynamic or it has an admin key in the smart contract which again the issue can use to to upload something new um not exactly the decentralized vision right for most people this is fine for almost all people this is fine but we can do better and nft is 2.0 in this case can actually upgrade nfts 1.0 we've made we made this upgrader tool that you can use to upgrade any nft collection into 2.0

so what does that mean well there are five main ercs I want to talk about today and we can focus on each one of them separately and you can then think of other use cases for them I'm applying them now to this use case but they are far widely applicable the first one is a multi-asset nft standard or well this says EIP because it's a screenshot but actually it's an ERC so 5773 allows you to have multiple file outputs in the same nft it's not airdrops it's not different nfts it's just different outputs which means that this solves the age-old problem of Gamers hating nfts because you can't take a skin from fortnite into I don't know Borderlands whatever

now you can because there's a skin file for one game and a skin file for the other game in the same nft and the context in which you load it depends it affects which one is loaded it also applies to other types of media you can have an ebook that is at the same time a PDF file and an audio file and if you load it into audible it'll just play right if you load it into Kindle it'll just show you the PDF but it happens in the same nft that's the advantage here the owner of a multi-asset nft can always pick the priority asset to show in marketplaces so that if you want to sell it on a legacy Marketplace like openc you can select which one has the priority now the other two are EIP ERC 6059 and erc6220 these two allow you to put so

6059 allows you to put nfts inside of other nfts the owner of an nft no longer has to be an account it can be another nft and so this is all final this has been merge into APS it works it's been tested in production for over a year let's say that you have this Lobster nft the lobster has and there are several hat nfts that are completely separate right you can put those into the lobster they're inside 6220 allows you to Define slots with which some of these assets are compatible so the lobster can have a head slot which can equip one of these hats so you can put a hat onto the lobster or replace it with another hat so you can have nfts inside the other nft some of which are in use others are not

now what happens if our primary asset is devoxylated lobster the art style of the Hat doesn't really match it anymore it doesn't look good if you try to equip it so they're not compatible but since every nft based on these standards is actually following the same rules this means that these hat and if these are also multi-asset nfts so they're also this which means that the Hat can have an alternative asset for itself which is itself of oxalated version now the Styles match and now you can equip the voxelated Hat on the voxelated lobster so this allows you to have that method of applying of applying assets across different games with different engines and different visual Styles and so on what happens if a new Collection comes

out that is completely unrelated a stained glass window collection and that one really can't wear hats right so that's super incompatible and it's not even by the same collector by the same issue doesn't matter again we add a new asset to the Hat a stained glass version of the head every asset you add can have a definition for which collection is compatible with and Which slot in that collection and now let's say that this little circle here is one such slot so we'll tell the stained glass version of the Hat asset you are compatible with this slot in the in this collection and so now you actually can put the Hat into this slot

so what did you achieve by this you are now part of a tide that raises all the boats because every new collection that enters this ecosystem which is open and permissionless and fully decentralized without centralized indexers and without needing a middleman to maintain a centralized UI every collection that launches is no longer engaged in a default vampire attack with all the other collections today when you launch an NSD collection you are attacking other collections collectors Traders users because you want them so by definition you want their attention you want to take them from the other collections here no here everybody grows together the more stuff is launched the more it's compatible

with everything else and when I see a cool stained glass hat I will ask this person where'd you get it and they will tell me and so this extends into the 6454 ERC which allows Soul bound nfts to be part of other nfts essentially you can lock an nft inside another nft but the parent can still be transferable which means the sold on nft goes with it but it cannot be transferred outside of it and this is especially useful for reputation let's say that we have three projects yearn coinbase jumper Exchange and they all have some tasks for you to do some of these tasks are purely reputational if you do them you get some

reputation which is a non-transferable nft inside of your nft avatar or whatever you have let's say it's a lobster some of them are also bound to the minting function of an equippable nft which means that if you achieve this if you do this task you will get the reputation but also unequippable and so let's say I did some tasks I got three reputations and two equippables now I can equip these hats onto my Lobster and show off that I've done this task but also I have this reputation in my Lobster that I can never take away so if a protocol needs to check if I did something they just check for reputation but I also have some cool swag that gamified my whole participation experience which is pretty nice a nice way to to reward your

ambassadors now the other guy comes in with his stained glass Avatar and he does another set of tasks he gets two reputations and one of them has the equippable stained glass hat the really cool thing about this is nobody in this entire system has to know each other they're all strangers they never collaborated but because they're all based on the same standard this is all mutually compatible which leads to the ability to trade between completely unrelated Collections and using these equippables and swag and gamification across collections again growing the pie for everybody this is part of the global item economy that is built on top of this entire system again permissionless open and

very very available available to every to all of you to all the collections to anybody who wants to launch something so by doing this you actually kind of foster cross-collection royalty collection which rewards creators which rewards the project themselves and which essentially makes one project user base inherit another Project's user base you merge these communities so and in this fantasy scenario which is really dumped down and simplified into just integer points you can have a system where for example jumper has applied certain points to certain tasks and coinbase did the same

and if you're the same now if you do this task for jumper you get 10 points if you do this task for coinbase you by five and so on maybe in some cases coinbase dislikes jumpers so much that they apply negative value to your actions if you do this for jumper and so you have this entire game theory of project Wars where they compete for the attention of their ambassadors using reputation swag and so on and this is just numerical it is totally applicable to full full-on Merit so you can have categories of work you did for a project and your reputation can grow in that category Therefore your vote in that category will be stronger for example

I'd Alice did some tasks for coinbase but they're all related to events she managed food she was a good vibes officer she helped people you know put away their backpacks whatever but Bob coded something for coinbase he was really active in in like open source work and so on they can both be level five but now she has a reputation higher in the events category and he has a reputation higher in the dev category matters of governance that require Dev voting power will be skewed towards Bob because he has more experience in it and his vote will be more powerful and this is how you avoid plutocratic governance over Dallas which is by default meritocratic and categorized into these

different merits so I know I said a lot here but we'll we'll go through some examples but essentially these reputational avatars into which you can put these non-transferable nfts and grow their reputation over time which are all mutually compatible allow you access gating by reputation so you need to be a Dev level five for this to work and none of this needs a separate database to track none of this needs centralized tools none of this needs Discord roles none of this needs any of that stuff it's all on chain it all works and anybody can read your reputation at any time you know coinbase may come up with a beta product that they will only let people with a certain reputation in a certain category access because now they can very easily read this directly from your nft

and since nfts can hold other nfts into Infinity into as as deep as you want you can have you know a Thanos Avatar who has an Infinity Gauntlet item which has gems in it and so on you know it goes into as deep as you want it to go whale resistance here is in the fact that you no longer so what is the whaling problem of dials right now if you have entities who have a lot of tokens which are also voting power and money this means that they're voting with money if that Dao has any kind of staking this means that they're perpetually getting richer and more powerful in voting which also means that

they are reluctant to give away any of that power because they lose it so if there's any kind of Treasury you will immediately get resistance from the whales because paying out the treasury introduces cell pressure to a token which to them directly translates as power they're allowing you to sell their power but if you start off everyone at zero reputation and complete the discount token Holdings then anybody can always catch up to anybody nobody is forever Out Of Reach because even the most enthusiastic people who participate in the project in the beginning will fade out over time and they will be replaced by new naive interested kids who really want to participate who really want to change

the world so you can always catch up to somebody in this system by just being an active participant and this leads to a natural kind of shift of power over time where the you know old farts are phased out of the system and the new guys replaced him because they are more active more enthusiastic and if you're an old fart who just wants to stay in you can just be more active there's the zero-sum game resistance that I mentioned because everything's compatible with everything else it can all just work and it's there's gamification of participation which is really important to some people like me if you add gamification to any kind of governance or or ambassadorship I'm in I just I'm a sucker for that and I want to collect

everything and I'm just going to do it um and it also allows you to have nfts 2.0 as accounts because they can now hold other nfts values even erc20s and you can just use them as as your accounts and we've played with account abstraction on on chains like ZK sync which have it natively um to avoid the contract bloat and just to do that natively um some examples coming to production very soon blossomland using these ercs to actually do exactly that so meritocratic categorize reputation for people in web3 this is not your average LinkedIn attestation skill attestation thing it's projects that are able to Mint reputation into other people's profiles

that are pending and when those people come to the platform and register for their profile a single transfer function is triggered which moves their Avatar to them and then makes it non-transferable so we also have this concept of semi-bound tokens which are neither Soul bound nor transferable like with Bitcoin it has value because most people think it has value and non-transferable tokens are non-transferable only until people you know choose to make them transferable in this case and so our system for excuse me restoring lost accounts for example is you can come in propose moving this Avatar to somebody else for a deposit and then if everybody else with this reputation of

this collection agrees or a certain threshold of them you will Define this as as the dial that's been being formed if you agree then a single transfer is made possible of this Avatar and you will be able to restore the account the same applies here they have a single transfer function so that if you're not on this platform people can still mint reputation for you but you can always claim your profile and continue using it and then you'll keep getting reputation minted into it directly projects use this and they can add custom ontology reputation into the system so that they can give you reputation for literally anything you did it's going to be a really fun project Crescent codex is our inaugural mint on the Moonbeam chain which we launched follows a similar thing similar pattern where you will get be getting these

child nfts Moon themed for any actions you do on our singular Marketplace so it's just a kind of a gimmick but it's a it's like more more like a demo that allows you to play with these equippables nestables and everything else that we have in the UI um there's Lobster dog food dial coming which is essentially um an OG group of people Founders from the web tree and D5 space who are uh desperately looking for ways to pump the value of their nfts that allow them to be in this group but have been struggling to find these ways and so this allows projects to hire them to dog food your project and give you feedback and based on this feedback and the amount of feedback you give you will be

rewarded with reputation and over time higher reputation means higher distribution of these payments that projects put into the treasury of the Dao again fully reputation based and no you know plutocracy now if you want to get started with all this there are all the links are on evm.r market.app or if you just go to spt2.io soulbond 2.0 um you can find them there there's sample contracts there's also a video series at the remark.link Go nft2 URL that you can use to to start building on this but more tutorials dap starters templates and everything else is coming it's on the way we've just launched on ethereum last night or the night before

so it's still kind of experimental we've been on Moonbeam up until now and polygon is coming next week and other EVMS very very soon what's really cool about this is whatever you launch on it will be visible in Legacy marketplaces so openc will be able to show this and other marketplaces will be able to show this you'll just be missing the core functionality of nesting equippables and all the other advanced stuff but the visuals are there um we opted not to take the iframe route on purpose which many projects do when they launch on openc and so on they will usually embed an iframe to load their asset and this makes them look Dynamic but the iframe is hosted on a centralized server nothing about this is

centralized anybody can take this and run with it anybody can build on top of it and it's fully decentralized our equippables and this nft 2.0 functionality has never been really hard to build but it's hard to build it in a way that it's forever backwards and forwards compatible our Focus was making these collections forever work together so that if 10 years from now a new game comes out it's compatible with assets that exist that's what we wanted to do and that's what we did with these erc's um so I have some more time for these use cases this is one example of those cross cross game skins that I mentioned so they can be both in the same file and you can just load them into any game that you play if the intention is to

play in Borderlands that's going to be the white unicorn skin because that's the style and if you want to play it in fortnite that's going to be a left one but it can be part of the same nft you can have digital ticket books for stubs and pull-ups in as an nft that collects these Pull-Ups for you inside of that other nft which itself can be transferable or non-transferable but it can make account recovery very easy up until recently for example in lens when you were using your account every single relationship you've done like follow collect everything with a separate nft and that's um kind of abstracted the way in the UI but very very impractical if you want to migrate your account if this were using 6059 where all the

nfts were going into one nft it would be just one transaction to move hundreds or thousands of nfts in one go saving tremendous amounts of gas and also allowing you to very easily migrate your profile revealable nfts are made very easy with this because you can always update the assets that an nft has so you can update new art if you mint an nft using these standards without any assets it will act as the average 721. as soon as you upload any asset into it then that one will override it and you don't really have any admin keys to do this here every operation on these erc's is a two of two multi-sig operation that means that if I'm the owner of an

nft the mentor of the collection cannot just replace my art but he can propose it and I have to accept it the same works with children right now if you try to add a new child nft into the parent nft it will go into a pending array and I as the recipient have to accept it this prevents somebody you know look I want to sell my board ape and somebody bombs it with swastikas can't happen because if they send me a bunch of nfts that I don't want to into my board ape they'll just go into the pending array which is a limbo where I don't have to care about them they're not visible I have to accept them in the special UI um asset backup is also very interesting

use case where because you have multi-asset nfts they don't have to be different they can also be the same asset but on different locations so you can have one asset that points to the model of the lobster on a centralized server one asset that points to it on ipfs one asset that points you into it on our weave and so on and so the chances of all of these asset endpoints going down are exponentially lower than having it in one single location so you can have you can have on chain in nft backups off the metadata um and something um really so the multi-asset nft is actually a special story that we can talk about later but it really enables

this multi-multimedia world of nfts where many artists have used our platform to actually upload a beautiful piece of art that they did and then uploaded a separate asset that is the making of video and they recorded the entire time lapse of just drawing that or sculpting that or whatever so this is really beautiful there's Evolution you can actually evolve and change your nft over time by proposing these new assets and replacing them changing them and so if you want to fix mistakes or if you want to upload a new higher Fidelity higher higher resolution asset all of that can be done using multi-asset in a fully decentralized way the obvious use case here also is gaming where and this is something that we're working on

you if you have like an in-game character an avatar that Avatar itself is transferable we have this world planned where the entire world is an nft which contains lands there are nfts which contain buildings that are nfts which contain avatars that are nfts which contain backpacks that are nfts which contain other nfts and if you abstract that away enough everything can be this data structure and so the Avatar is actually nft it can have pockets or whatever but the Avatar can also contain a non-transferable nft that's a brain the brain itself can have skill slots in it and the skills you collect in the game can also be non-transferable nfts and so when you have this Avatar that Avatar has a number of skills in their

brain inventory but only two slots to equip them in so now they have to pick which which skills they're going to equip it's like the old RPG mechanics of DnD where you had to rest the character to learn new spells but this time it's all on chain and there's no database in between needed to index all of this so it's perfect for fully on-chain RPG mechanics if you want to build a fully on chain finally a true web 3 game now this is very possible very easy to do with this stuff and of course it's applicable to many more media types like you can have a collaborative music composition where a music sheet is completely empty but has slots for vocals bass guitar lead guitar drums whatever and so one person can mint a drums track another person can

mint a vocals track you put these together you equip these into the proper spots and you have a collaborative composition that can mint a copy of itself every time it's traded and distribute royalties to everybody who contributed based on their tracks in this nft additionally this can then be cloned and modified with filters with other tracks remixes and so on again all on chain and all fully decentralized naturally it's much easier to have a bespoke UI that makes this very easy to interact with but any UI that supports these standards can handle this stuff and this is what our Marketplace singular app is actually doing that's it I have yeah seconds remaining

so um thank you very much and if we have a few seconds for a question happy to answer something [Applause] hi thank you for the presentation it was very interesting uh you mentioned something about having to double sign somehow like the publisher the editor and the owner to validate and upgrade of a contract is there also something similar like as I'm if I'm a publisher I have a collection I have prepared slots for example for the for the hat but I

don't want any hat to be added to my uh to my avatar because I care about the the look of my brain Etc can I whitelist a collection that can be added exactly why IP protection is built in where every collection you create using we have this new primitive on chain called the catalog and the catalog lists all the parts of your composable nft so if you're building a composable energy like an avatar or something you will first list all the parts in this catalog and then you will mint from these parts it's a bit hard to understand in an abstract way but essentially it's like a list of everything your character is composed of these parts can be fixed or slots and so the fixed parts are basically usually svgs that are then layered over each other whatever and between them the

slots go so that you can emulate holding something you know top of the hand bottom of the hand you can Define the list of collections that can go into each slot okay and so this goes into the into the catalog and it's updatable you so you can put an asterisk there and this means it's completely Community controlled everybody can mint anything compatible with it but if you want to keep it your way keep your art limited or maybe even sell a white list spot to I don't know Coca-Cola which wants to add a bandana to her Avatar this is Coca-Cola you can do that yeah okay great thank you all right thank you [Music]