NFTs That Make Sense / Daniel Vaczi

Transcript

foreign [Music] guys how are you how many of you went out last night ends up now oh it's a good crowd okay well it's really nice to be here um yesterday we had a stream uh from our CEO while I come from a company called galaxies Andres had a seven minute stream and everyone left the room unfortunately because that one does an announcement happened outside so um I'd like to ask you to go on YouTube

and check out his seven minutes talk on the platform because I do believe that he um he talked about something Revolution revolutionary and what uh what we're trying to achieve at galaxies so um without further Ado Let's uh let's kick off so um there was a lot of talk about coding I'd like to actually touch on on other topics here and my chosen topic is nfts that makes sense cool um so let's go back in the past in in December 2020 when a relatively unknown artist sold his um artwork during one weekend for 3.5

million dollars and that was quite extraordinary um what do you guys think he sold his very first art actually do you know what a year or the month that was his first collection actually ever he never saw anything else before and do you think that was because of put your hands up if you think that voice goes over the bubble so you think it was a bubble or you think he actually started the bubble you put your hands up twice for the same answer okay so yeah he actually he actually started the whole bubble that we I think currently live in and I think

most people agree that we do live in a hyped hyped up markets in the in a bubble um but nevertheless that's not what I want to talk about he actually proved two things to us with what we call what we call the Beatles proof the people are willing to pay for digital art which was not the case before and the second is that people don't care about copy protection and here I need to highlight this is not copyright protection because people do care about copyright protection right it is copy protection that they don't care about so what I mean by that copy protection is that I don't care all the artists don't care whether you can download the file

and display it on your website or share it across your social media fans or followers or friends we also learned two other things is that people care about two things provenance and scarcity provenance there's a solely proof that the art was indeed created and came from the artist solid proof and scarcity a solid proof again that there are only limited number of these nfts in existence and which technology can do that why are you here because of nfts okay so that's what actually NFC proved to us

this is what we can do we don't care about copy protection we don't care about if someone can download and use our files button okay um so that actually nicely leads to DRM okay and I want to talk about how DRM is done right so I guess also you guys know DRM stands for digital right management okay but um PRM has always been cursed right from the start it actually doesn't protect either side it's actually bad for the artist it's bad for the Creator because the end user can't experience the uh the art and his creation or her creation and it's about from the end user perspective

as well because just it limits the experience now the only party that can actually profit from the DRM and DRM software and solutions are the companies who designed these Solutions so yes we don't like DRM but there is a right way of doing DRM which is of course non-fungible tokens this is the right way of doing digital right management because the same thing if you go and see a museum they don't care if you take a picture and put it up on your on your Facebook profile okay so we talked about artists and the

and the nft technology is cool for artists but there is actually quite a lot of use case that I want to cover I think it is really just the person's imagination knowledge of the technology and the knowledge of the industry that limits the use of nfts and later on I'll show you the different companies and the and and creative people that we worked with or the project that we that we want to showcase because they have taken nft Beyond art and some of these are startups startup accelerators social good projects and

there are so many examples but I can only show you about five or six so we'll come back to uh we'll come back to these so let's go into the utilities now because this is the whole point of my presentation I think nfts will only make sense if they have utilities if they have use cases if they have a purpose we truly believe that pfb's simple pictures will not actually be viable in the long run they don't have longevity what we really want to do and what actually we are trying to achieve at galaxies as well that the projects that we launched and the companies that we

work with or the people that we work with they want to actually have some sort of meaningful uh thing behind the collection they have a purpose now if a token doesn't have a utility then this is what happens it actually creates a very unstable market right and while it's good for some people to be in these volatile markets but it's I don't like to be operating in a in an up and down Market you know it's you cannot even plan ahead properly so and so what does this child remind you of of course Bitcoin right a token only blockchain and there are so many other pfps out

there it's doing exactly the same so we like to go away from that the the NFD the the blockchain has to have a purpose have to have a higher meaning apart from just there just being uh talking on a blockchain so I'll give you an example things in real life that have a use case are buildings for example they're actually useful for people so the price is steady over time they don't actually fracture well exclude Dubai and and markets and cities like that um but they do actually stable of course there are other products as well that are useful for us they have a shorter lifespan but their their price is actually stable because it anchored to utilities anchored to things that are

useful so we believe in that utilities mitigate speculation that's why it's important to have utilities now okay I talked about utilities but I guess you're asking okay well tell me what utilities you can do and what what are utilities really so this is an example from a project that we recently launched is called girls robots and Dragons or grd.fan this is the uh the website where you can go I'm actually demoing the uh the card which you will find at the bottom you can play around with this as well so here for example

you can book an online meeting with the artist who created this collection and you can do this right from the nft and this is not just how it looks like on the website this is how it looks like on openc as well when the reveal is going to happen but if you want to look at the real life example then you have to look at The Ether cards ether cards actually are displayed on on openc as well with the same sort of like utilities and again utilities have to make sense to your audience so when we launch this project we really wanted to connect the the artist with the with his uh or the artists because the two with their fan

base so we created we added online meetings autographs rewards merchandise Etc but I think you need to think what can I give to my audience that actually makes sense you know it might be completely different so I think yeah it just Loops the demo is Loops but please go into the website and and have a look and yeah it's not actually super expensive because ethereum is on a discount right now as you guys know so you can you can go and play around with this so I cannot go away without talking about Community because we talked about um

we talk about the technology and the use cases but the community and roof Community is extremely important when it comes to making a project successful I think no one can disagree with that with other end users there's no uh no success so there's a huge part in this what we see and what we believe and actually oppose at galaxies is we don't want to do campaigns that the kpis the key performance indicators are sell the 10K collection as fast as possible push the floor price up as high as possible and that is our success

measurement this is exactly what we don't want because how do you achieve that you achieve that with during actually just doing hype bump and dumps games right and most of the cam most of the collections are there actually operated at this level what we want to do is that we actually want to build communities over time we want to create communities that grow naturally and communities real communities actually take time take months and months and years sometimes to to grow and yes it's more efforts and yes it's more dedication and you have to live and breathe where you're communicating not just not just do your

short month month and a half run but you really have to plan out a full year ahead uh or or longer what you're going to becoming and how you're going to get the community involved and uh and to get the community involved for that longer period of time what you have to have is of course utilities something that actually gives back to the community otherwise of course no one is doing everyone's looking for free but for nothing that's a good good way of saying it so you want utilities that will actually power this whole cycle that again it leads to a nice next chapter here next section is

contributors economy now contributors economy is I found the best example actually contributed economy is like ethereum staking do you guys know ethereum is taking it's essentially do you want to talk about it then no okay um so ethereum is taking essentially rewards people or companies who come in and support a network and help the network secure in the network or do certain tasks you have to posit a tiny amount of 32 eth and then you can join the club who can then support a network but then essentially you stake the 30 to

eat and then in Return of course you get rewards but you have essentially a stake in this whole thing you know you want the whole system to go well and do well so that's probably the best way to describe contribution economy when you when you think about how this is done perfectly well and then we arrive to the use cases um now I want to make it real I want to give you some examples and I hope I'm going to inspire you with the with these examples and the first one is batwix which is a essentially an nft book nft book what it does actually it was designed by Healthcare professionals and

as you go through the book and you make choices within the book it changes the cover of the of the book The nft so you say on the left this is how the visual changes and it actually at the End by the time you finish the book it shows your sort of like state of mind or personality or whatever the the topic is so it's pretty cool way of actually engaging people and getting people in the other one a posi.io it is a fantastic use of of nfds and utilities posi IO just launched deposit Dot cards nfts essentially what they were trying

to do is to come into this they are startup accelerator and incubator what they are trying to do is incentivize both sides the startup and the investor as well with nfds and utilities and and grow them together essentially and also mitigating the risk that typically involves when you invest in a startup and we have five minutes left so we have crypto hedging crypto is a Indie filmmaker from South Africa um these guys actually um created this little film about autism

acceptance um it is um essentially when you buy an nft you have um maybe an input in the uh in the creative direction of the of the film or you can actually redeem props from the from the from the scene from the from the movie so pretty cool way of actually getting funded in the films are notoriously so struggling they usually struggle with the uh with fundraising and ens we talked about ens yesterday so I'm not going to cover that but actually ens nfds are not for sale nfts and they you earn them by performing certain tasks is similar to ethereum staking

and then I had to pop this in yesterday this is this is pretty cool project from Honduras I think they they call the web 3 Beach essentially you can see the amount of rubbish that you know typically uh gets them to their Shores because they're a tiny Island and they get from from from the surrounding water of course and the countries as well and they created these nfts to encourage the local Youth and also the travelers to get involved with Beach cleanups and what this nft does it actually rewards you for doing of course Beach canops you can see the amount of

rubbish that these guys managed to collect the nft actually tracks the amount of rubbish that you collect um and also how the coral and the beach actually coming back to life so it's sort of like a governance nft as well a proof of impact I love the terminology proof of impact nft um and there was another thing I didn't actually want to bring in but maybe I just mentioned there's also a non-transferable token uh NTT new terminology for us and so NTT which is essentially um they also do schools they educate people around you know environmental issues and how to deal with them so they they

um they give you an entity as a sort of like formal certificate on an entity you can actually collect certain things that you don't want to transfer because no one wants to transfer a degree or a master's degree what you do right so that's similar to them so please check out this project it's uh it's I think recently launched but it's again a very Innovative way of of uh of using nfts and utilities and then we have arrived to the to the end thanks for your attention um so galaxies is a web 3 platform we're actually launching three products here um we truly want to make it decentralized so a Launchpad where you can come in and design your uh your nfdn

collection a mission control where you can set up your the small contracts and utilities as well and make it Dynamic and then third one is uh community space or short space because we do want to get away from Discord we don't like Discord so um we need need you have to have a safer Place well that's it that's that was my personal foreign [Applause] okay thank you very much Daniel does anyone have any questions from the audience we've got uh roving microphone and I'm sure we can come with some

questions from the ah wonderful we've got a question here in the middle if we run out of time we do have a booth by the way as you enter on the corridor you might have seen please come around and chat with us about anything really not just web3 and at 5 00 pm today we're going to have some wine so you definitely want to go come around for that sorry cool um about communities so how do we bring communities that are not into nfts already people that don't know anything about nfts so how do we connect the Two Worlds well one way that we try to tackle with these guys so the uh the girls robots

and Dragons collection we launched um credit card payments so you don't need anything apart from a credit or debit card and and the email because we knew that the audience actually who uh who were inspired by these guys in the decades ago don't actually have and probably don't want to get involved with the with you know getting cryptocurrencies first because that's I understand it's a long process of getting cryptocurrency and then you have to connect so I think technological solution will come to help us actually gets that burden out of the way but um it is I think this is what we have to do

and more and more often we have to go mainstream and talk about it and uh and educate people I truly believe that they uh that's the only solution that you go otherwise we just have to wait for the next Generation to come and overtake the the ones that are skeptical hi I'm Julian and uh you know I you are finally the right person to ask the question that is in my mind I hope I can answer your questions so so I'm wondering you know because some some ideas is on using nfts for example for gaming industry are in the space for like years and they were never made mainstream unfortunately and you know with this all nft bubble I expected that we'll see

much more use cases around gaming industry like you know putting like your digital items on blockchain as nfts and then trading them and that proves both provides both provenance and limit Supply as as you name that but I cannot see that happening at least not at scale so I wonder if you know what's the reason in your opinion why we are not why we are seeing all those most useless applications and we do not see those very useful or very very promising applications happening well I don't know all the answers for that but my personal opinion is that I think what we do at galaxies technically is quite Advanced

you know the the small contracts we are pushing them to to the Limit and I think for now but this is just for now now companies don't have the capabilities to uh to actually make usable platforms you know like I think WordPress made is available for millions and hundreds of millions of people to create website without actually going through the pain of getting hiring a developer or learning HTML you know so I think it's just complicated for now you know to introduce those Innovative Technologies you're not convinced with my answer this is this is my answer there might be other answers but please come to our booth and we can continue thanks okay we still have time for more

questions here one in the middle or two in the middle um yeah I wanted it was interesting because you started out talking about how um people proves people will pay for art and they don't care about copyability I'm not sure that it proves that but there's a contrast between what you said about the monetary value of the nfts and most of the examples you showed like the examples you showed about half of them were kind of non-transferable certification type things and so where's the money coming from there because oh I didn't want to betray them no but even the ones but even the ones that are certificate for doing work right and the ones for the Autism

Society that represents that you you know you did good those people aren't buying those as nfts they're doing good and getting a cool sticker which people love but it doesn't align with what you said about selling art at the beginning those aren't similar applications and so I'm trying to understand the connection between the beginning which was about selling art and the end which is examples that did I think it was an evolution which I mentioned so from 20 2020 on so there was an evolution and now we need to we arrive to the stage where we need to introduce utilities and you're right they might not be making money it's not the whole point of actually those those Charities making money is the point of actually get the youth involved you know and get maybe a funding for your project it's not always

about making money and I don't think you should be okay I think there was another question over here but maybe that question's gone away maybe I answered last opportunity for questions for Daniel well thanks very much I appreciate your attention and uh please come to our group thank you very much thanks thanks