Web3 wallet competition, product versus protocol and music NFTs

Transcript

what's up friends welcome to web3 academy a place for entrepreneurs creators and marketers to explore and learn how to use web 3 to transform business models and create thriving communities enjoy this next episode [Music] gmgm welcome to web3 academy it is the weekly roll up i'm jay hamilton your co-host hitting you up from whistler canada we got kyle read head what's up kai what's up guys i'm here in mexico city uh lovin life here jam-packed episode today wow uh we're gonna talk about wallets wallets wallet wallets there is so much to talk about about wallets uh we're gonna dive into a bunch of news new wallets coming out um

so much news to dive into there we're going to talk about uh some just a lot of announcements today um money big some big funding starting lots of money flowing into web3 i mean we're already seeing tons of money but one of the biggest funds ever in web 3 i think was announced this past week we're going to talk about the decentralized social uh layer of web 3 that is coming and building very quickly right now uh kyle's pointing to his lens protocol hat if you're if you're listening uh feeling the biggest nerd in the world wearing this hat but i love it you look like you belong on the golf course right now but like the like you belong at like the dao link

style golf course uh we're gonna talk about music um music nfts lots lots happening there we're gonna talk about sports uh lots happening there is you know music and sports are two uh huge uh industries that are ripe for disruption in web 3. and then we're going to wrap up with the nft of the month did i miss anything kai what else are we talking about today oh i don't know we're going to talk about a lot of things but that's a good that's a good little summary we'll see where else this goes [Laughter] but as always we're going to start with gratitude because practicing gratitude is so important uh

yeah always important kai what are you grateful for uh i am grateful for the web3 community uh i met a bunch of them for the first time at the permissionless conference last week um and it was pretty incredible i'm super bullish on the people of web3 and crypto and uh yeah it was super cool to meet so many faces so many people that i've like met and talked to on twitter um and now to like put a face that was yeah it was really cool nice i love it um if you haven't listened to kyle's podcast from monday which is a recap of the uh permissionless conference or more actually a recap of what were his five takeaways from the conference five

things that you should know about that the smartest people in web3 are talking about uh give that a listen or there's also an article give that a read that was very well done kai really liked that um i am grateful for my new electric sander that i purchased and used all i've been using it every day since i purchased it this past weekend i am sanding my deck um i bought a 40 year old house about a year ago and uh the deck is uh 40 years old and the paint is all peeling off and we are reviving it and bringing it back to life and saving it

from mold and rot um i can barely feel my arms today because i was sanding until like 8 pm last night after work uh so yeah my shoulders are very sore but man buy the right tool this is like actually a great lesson in any uh not not just renovations anything in life like we're gonna talk about wallets while it's our key tool for web3 using the right tool makes all the difference in your life so invest in the right tools and that's what we're here for at web3 academy is to teach you about which are the right tools in web 3. i can't believe you just turned buying a sander into a beautiful transition into web 3.

that was incredible i've been uh i've been working a lot on my transition so on that note uh first up we want to talk about wallets um before i jump into talking about i got coinbase made a big announcement before we jump into that kyle why do we want to talk about wallets why are why are wallets so important in web3 oh wallets are like the the personal dashboard for the for the web3 internet like it's like it is the thing that everyone's going to first use and log into before they go to do whatever they're going to do on their computer or their phone it's kind of like the first page in it right now at least for me is google right when you open up a browser it's like you see google it's now going to be the wallet because that's your entry point into

connecting into all of the applications and everything else that you use it's also like if you have any of these wallets currently like it's also a browser it is your browser inside of there or it's a browser extension but all the mobile wallets they have browsers right in it so it's going to be sort of your entry point into to the web3 world into the metaverse i guess is what you can call it and so this is where all every user is going to have to have a wallet right every single person that uses the internet is going to have a wallet so you know i don't know how many users there are on the internet but that is a massive massive massive amount of people and so of course this is an important tool um because the better that wallets function the better their ux

well the easier web3 is for everyone else which then benefits all of the apps and everything else we're doing so um it's the most important technology i believe um for for web3 yeah i see it as i liken it to how facebook and google and apple really won the war of um owning login in web 2 right there was you guys might remember there was this big race back way back when it was like who's going to own login in web 3 in web 2 because if you own login then then you own that first step that everybody's taking in accessing content online and the wallet is the the web 3 version of that um

just forgot kyle i forgot to ask you the web 3 word of the week uh we might have maybe we just said it 8 million times or maybe you want to pick a different word kai what's the web 3 word of the week quick quick stop here okay yeah i got a word the word is permissionless and there's two reasons why one the conference i went to last week was called permissionless two i think permissionless is one of the most important like foundational properties of web3 permission permission list just basically means like you don't need to ask for permission to interact or to do something in web 2 everything is permissioned if you want to tweet if you want to post on instagram if you want to send money you always need permission from the bank

from the big tech and web 3 is about permission lists where you no longer need any permission from anyone to do any of the things on the internet just like in the real world i don't need permission to go and talk to someone or to give someone cash or to hold up a sign or whatever i'm gonna do i don't know um and so the internet is becoming permissionless and that excites me okay awesome back to wallets i thought you were gonna pick the word wallet so that's you kept everyone on their toes there it was a great surprise thanks for that guy uh okay first first up on wallets let's talk about coinbase and uh we're going to talk about coinbase for the coinbase has coinbase wallet which

is a self-custody wallet which has been around for i'm not sure how long but it's a wallet that many people are using already and then recently they made an announcement of a new type of wallet uh using mpc tech um which quite frankly i don't even know what mpc tech means so i'm going to i'm going to refer to yukai on what it what is the difference between first let me just explain actually so the coinbase wallet that they already have is a self-custody wallet that basically is for those of us that are tech savvy right so we know how to back up our own key we were comfortable managing our

recovery phrase um then then a self-conscious duality is great and you can connect that self-custody wallet to a ledger or a hardware wallet for cold storage as well which allows you to have control of your own keys in control of your own assets and properties um but i think for a lot of the world that is not what they want that's a bit too techy they don't want the i mean talk about managing your own seed phrase like i i don't even know what to do with my seed phrases kyle and i had this conversation all the time we won't have this conversation online but like you know where do you put them right like who do you give them to like where do you know these

pieces of paper that have 12 words on them or 24 words that are just like sitting somewhere and you know and if you find that you own our assets like managing keys is definitely not something the whole world will want to do um so there's a lot of innovation coming out in terms of okay what's an easier way to give users web3 wallets without all of these steps that are sort of scary for a lot of people yeah i mean so the non-custodial wallets are great and you need that to go and interact with web3 right the alternative to this is just coinbase the exchange right which you have an account a web 2 version and you can't interact with uniswap and openc and all the stuff with coinbase

you need this coinbase wallet so the barrier to entry here is that there's so many people who have no freaking idea what to do with these seed phrases and don't really want to deal with these like um with the risk of that and that's completely understandable and this is why i think there's like 300 million or something people that have owned crypto but like less than 30 million that actually hold it non-custodial right there's a huge barrier there uh or gap there i mean and so coinbase is trying to kind of fill in that gap and the way they're doing is with this mpc wallet which stands for i think it's multi-party um multi-party something uh what is it multi-party computation doesn't really matter to be honest basically what this

is so they actually announced this at the permission permissionless conference and essentially what's happening is they get a lot of people that lose their seed phrases and they come to coinbase support and say hey i lost my seed phrase can you please give it to me and they're like uh yeah we can't do that and people are like what like they're kind of mind blown they've lost their money so obviously a very big problem in this industry um and so basically what coinbase has done is they're trying to fix this and give the sort of like in-between technology that these people need so it's non-custodial and you can you know interact with web3 with this mpc wallet but what happens is basically your seed phrase is like cut in half and coinbase

owns half of it and you own half of it and so um if you lose your seed phrase you can go to coinbase support and they can get it back for you um but they can't see it it's it's encrypted on their end so they can't see it unless certain things happen i don't know all the details yet of like what you need to do but basically what it is is there's kind of a fail-safe here where by coinbase can help you recover your seed phrase if you ever lost it and so is it fully non-custodial and all the things we want no but it's like it's pretty close and i think it's a great onboarding tool to like get people used to it and understanding and then once they're ready to go full-on they can you know get their own

non-custodial wallet or their hardware wallet like you said jay but the key thing is is they can interact with web3 um with web3 apps so they can enter the world um but still have the sort of like support and safeguard of of coinbase so that is a good entry point something where like my parents for example might be able to use that and could actually now use what i don't know what they would ever do in web 3 but if they ever did this would probably have bitcoin [Laughter] my dad calls it bitcoin [Laughter] we should have a section on what boomers call bitcoin that should be a weekly a weekly section um yeah it

the the lost wallet thing is such a a real struggle of of web 3 right um and you know i saw i saw yesterday um a tweet somebody found a wallet that bought a board ape like early on um and no actually sorry but 27 boys that's what it was do you see this 27 board apes and so this wallet has 27 board apes which led to 27 mutinapes which then got airdropped 27 uh board a kennel club which then got the other side landing now at some point this wallet stopped

receiving these air drops and claim start claiming them um so uh the it's presumed that this person either lost their seed phrase or they're dead because they're not using this wallet anymore but this wallet would have a value of about 10 million dollars if somebody could access it again it's crazy insane we need to fix this we need to fix this yeah which is why we're talking so much about this and i think that like the the thing that we the listeners should understand is um you need to participate and play to learn this stuff so get in get some wallets but don't feel

like you need to make massive transactions right like just get in and start playing and start using wallets buying nfts moving money around moving coins around and just see but you don't necessarily have to put all your life savings into it yet right and and actually don't do that please uh but anyway we're about to talk about what i'm asking before we do i just want to say i downloaded the coinbase wallet yesterday i mean i use metamask i've used my mouse for a long time mainly because that's just the thing that's been around for so long so i've just had it for a long time um and i download coinbase wallet and oh my god the experience is so much better the ux is insane compared to i don't even know how metamask is still the largest wallet actually they announced coinbase

announced at permissionless that they are the um highest downloaded wallet in web3 in the last year so they are quickly climbing and probably i would assume are going to beat metamask is just i don't know how they won't um metamask ux in their is just not good um at all to be honest no coinbase is it's beautiful you can like you can go in you can interact with like apps right in there so instead of like with metamask i gotta go find the link make sure it's the right link um like they're just they're like to like unit swap or whatever they're just it's already built into the app of coinbase you just click right in there's like a browser in there that is just a much better and faster experience than what metamask browser is um you can like um stake your tokens inside the coinbase

wallet and again it just takes you right into the app so you don't have to like leave the wallet and this is all in the mobile experience um yeah really really well done um so coinbase wallet and i'm hey i talk about coinbase all the time i'm super bullish on coinbase i would bet their stock is smashed even more because prices just only go down right now but i'm just gonna say their stock is definitely not doing well right now nobody's this so man coinbase is they're building the ux for this space and yeah i think everyone needs to wrap their head around that and here look at this so metamask their biggest competitor what is the metamask big announcement today we're integrating coinbase pay into metamask as a method of transferring and purchasing crypto coinbase is launching this integration with metamask first as

they roll out to the web through ecosystem so you can think of this like apple pay right where you connect your credit card in to your phone on apple uh and you can pay for things or do whatever so this is coinbase pay where you can do the same thing you can connect and you can immediately just buy um crypto from your credit card using coinbase pay um and so you can almost think of it like a tool or a widget that will just get plugged into probably every wallet right like why would wallets not use this um and some wallets already do this with apple pay to be honest so coinbase is sort of competing on that level um but i mean coinbase wallet is metamask's biggest competitor and metamask has to is basically forced to use this product of coinbase um so

yeah coinbase is just they're creating the ux of web3 super bullish on yeah just on every level yeah it's it's amazing okay let's talk more about wallets another big issue within wallets is obviously new users coming into the space and what we're seeing right now is a ton of new users want to buy nfts there's so much attention around nfts there's a lot of excitement around it a lot of i think every day people are more excited about an nft than they are about buying tokens buying coins right um although although definitely one

issue within nft spaces or real polarizing viewpoints on nfts i find in the mass media right now a lot of people hate on nfts like absolutely hate them which i don't understand at all um but anyways let's not side conversation so what happened here was um a wall company called paper got a big investment from um polygon and some others of 10 million dollars to build um basically a way to onboard people who do not have wallets um onto web3 specifically focused on purchasing nfts though right so one problem that a lot of um

nft producers have right now nft creators is and i you know i've spoken to many nft creators of you know if you don't have big marketing budget or a big following then you have a big challenge of selling out your nft right you know how do i get more eyeballs on my nft and sell it out and one of the reasons why that's such a challenge is because such a small percentage of people actually have a wallet and can buy your nft so what paper is doing which i just i love this is they're basically making an experience where it's very easy for you to sell your nft to somebody who doesn't have a wallet so what somebody

can do is they can you can use paper an ft creator could use paper you set up a checkout process using paper and then i can come in i don't have a wallet i'm your aunt and i don't have a wall but i want to support my niece in her nft collection well i can go to using this paper checkout i can go to the checkout page and i don't need to connect my wallet i can use my email and using my email and then paying with a credit card i can purchase the nft and then basically the nft is held in a like a custodial yeah it creates a

wallet for them essentially creates a wall for them yeah yeah exactly someone else was doing this i forget who or what it was but yeah it just kind of creates an underlying for them i think it's unlocked protocol does this where you can like buy an nft and then like you don't even really realize but it creates a wallet for you don't even know it though yeah um so probably again a cool onboarding tool is it is it perfect um probably not but it's kind of like with this mc npc wall it's not perfect but it helps onboard people right it gets people into the system and that's the most important thing we need people coming into the web3 ecosystem exactly exactly what i find most interesting about this one is they're not necessarily promoting themselves as a wallet they are promoting themselves as and

then commerce for nfts right so it's like hey we manage the checkout of purchasing your nft but really what they're doing is they're enabling somebody to buy your nft without a wallet and then like you said create a wallet under the hood so right interesting just to see how different people are approaching the ux and creation of products here yeah i got to go back to this whole people complaining about nfts i don't understand how someone can hate an nfc if oh i do understand it's just they don't know what it is all an nft is is just digital ownership it is literally just the ability to own something and why the hell would anyone be pissed at owning something so it is but here's i i i heard a good argument the other

day for why people are hating on nfts so here's the argument um when you when you don't understand something and everyone else is talking about it you feel dumb right and people don't like feeling dumb right so um it's easier to then hate on something like think about you know when your money is involved right exactly and then you add money and then you add money and so you don't understand it so you don't want to feel dumb so you'd rather just talk it down right and hate on it but then also there's money involved so so many people are making money which leads you to be jealous right right and you see all these people making

money so you're jealous so it leads you even more to talk it down because you're not involved you're not in the it's like it's like you know being on the outside of a club or being on the outside of a party you're like oh that party that party sucks right right it's a good point so i think people hated the internet there was like a lot of fuss in the internet in the 90s so and like why would you hate the internet it's just weird well uh say through that and as we know everybody's going to love nfts long term of course of course everybody's going to own it well here's the thing no one's going to even know what an mt is because they won't we don't use the word nft right like it's like it's like hating http and smtp or whatever like icd

whatever the hell the internet's built on it's like imagine hating that protocol here's here's a good thing we should do this we should we should survey uh the our audience when you think the word nft what do you think what does that word mean to you and i'll bet you most people think jpeg right for sure right profile picture or something right they think profile pictures name jpeg so no wonder people are hating on it they're like why is everyone buying profile pictures and jpegs right that's a good point so but it's so much more than that okay back to wallets [Laughter] believe it or not there's more freaking wallets so this is like so there's actually a couple big watches here for wallets which is kind of cool gamestop we've heard a lot about gamestop

building this nft marketplace uh you know they're doing a ton of stuff in the gaming world on top of immutable x um and loopering which are two layer twos and they have just launched out of the blue a wallet um and so basically they allow you to hold each uh erc20s and nfts um in in a wallet which is built on top of loopering which again is a layer two on ethereum um so yeah that's really cool i guess i mean i think the one thing that's big about this is what gamestop is doing is actually really big they're onboarding the gamers into web3 so they're creating gamestop and immutable um are basically and we're going to talk about immutable in a second as well later on um but they

are building the underlying infrastructure for big time games to come in and seamlessly and easily um integrate web 3 into their games using nfts tokens et cetera and um and so that infrastructure is brand new because it's all done on on on immutable which is is gasless there is no gas so the idea is they want to onboard developers into the easiest cheapest and most secure ecosystem and so like all of the biggest gaming companies are currently building in the space one with gamestop and unimutable it's going to be a massive onboarding for web3 but there's just it's a very weird ecosystem right now because there's not much on there and so like gamestop has built i think a marketplace they've built an

onboarding like grants program to bring in all these developers there's hundreds of them um and now they've built a wallet um that hopefully is i haven't used it yet um but it looks pretty cool i went on the site um so hopefully it's it's at the level of i don't know coinbase's wallet ux wise we'll see yeah i think you nailed it the the adoption of uh gamers and onboarding into web3 is just so huge in game fi sorry gamestop is going going after that which right yeah makes a ton of sense another big time name [Music] yeah it's robin hood so robin hood plans

uh web through crypto wallet for d5 traders nft buyers etc basically they're launching a non-custodial wallet they announced this one at permissionless as well uh the founder was there it was a weird presentation to be honest um he like played this like really weird video of i don't even know what was going on like sci-fi stuff um and he's very cryptic he's not saying much so i get the feeling that they're not that far along um because bankless also interviewed them at permissionless and he had not much to say now what they're doing is awesome but he just he had to keep most of it hidden for now but basically robin hood is like is disrupting their own business right this is super cool um because robin hood is a custodial

exchange essentially for stocks right and actually for crypto as well and so last year they enabled the ability to withdraw your crypto from robin hood and actually move it to like a web 3 wallet or to exchange other exchanges so that was kind of cool and sort of disrupting their own model there you think you want to keep it in-house as a centralized organization and now they're creating the ability for users to just completely not use robinhood at all but use the robinhood wallet and custodia their own assets um and then interact with web3 and so robinhood gets it they see where the future is they see that centralized custodial products are not going to make it ngmi um and it's all about self-custody um and so they're going to build a ux for

that uh and compete with coinbase and gamestop and metamask and all this and what's great is they have i think it was 20 i said it in monday's podcast but 20 something million users uh at least and um and so it'll just be super easy to onboard those people right into this this web three wallet um and they're doing it in such a way he didn't explain how but where there will never be fees um so basically they will i don't know if they cover it or probably they'll be on a layer two of some sort slash you know other cheaper blockchains maybe and then they'll maybe cover the cost i don't know what they're gonna do um but that's what robinhood is all about is like super easy ux with no fees they hate fees and so robin hood you can buy and

sell stocks without fees they're gonna do the same thing here with crypto so i don't know how they'll do it but we'll find out and this this came off the backs of the announcement that sam bakerman freed bought 7.6 of robin hood so you know i think a few themes here sam bakerman freed you know arguably the one of the biggest players in web3 creator of ftx uh one of the youngest youngest billionaire in the world now yeah uh like top 30 on the most wealthiest people in the world list i think like very very high it's crazy um but he purchased a staking robin hood

one week later robin hood announces that they're going to launch a wallet and i think you nailed it like kai robin hood's been having a tough time uh they've been struggling and so what do you do you gotta you gotta adjust with the times and you gotta find new opportunities you gotta innovate your product and i shout out to them kudos to them i think it would be very easy for them to dig in their feet as a lot of companies will and push back against web 3 but they are they're rolling with it and they're creating this new wallet and doing things to to to continue to grow this is also sbf buying the dip because like robin hood is down like 80 or something like that and so spf is like yeah i'll come in and buy some of this sweet and it's like he's buying the future of web

3's really i think is play here yeah yeah completely and then ftx announced that they are creating ftx stocks uh which is now launched in private beta uh this was a bit surprising to me to see ftax say that they want to get into the capital markets and allow you to purchase stocks on ftx um it's only going to be available to residents the u.s and it's only in private beta right now so uh it's still early but very interesting to see it's like sbf is controlling everything and coming at it from every side yeah there's some i was um i was at an

event after permission list and talking to some i can't say it in the names but they were like they're people that a lot of people would know and they're big as like economists and analysts in the space and they had actually a lot of negative things to say about spf um in the sense of that he really controls the markets and can control a lot of what's happening and i guess he's like doing a lot of i don't know and this could all be complete rumors but basically what they were saying is like he's basically kind of deciding on where things go all throughout the ecosystem and and the idea is that it brings it all back to him so that he continues to get the revenue and ftx continues to grow from it and um i don't know i always thought spf was a

good guy i don't know him so i have no freaking idea but it was interesting to hear the side of the story from some people who are like pretty well known and big in the space so it was it was interesting we'll see we'll see we'll see all right well from wallets let's uh we got some announcements we're leaving wallets now finally we're leaving wallets i know that was there's lots to talk about about wallace i think we can go another like a month without talking about wallets i i mean as long as we talk about it in the discord because i i don't want to stop talking about it yeah all right uh a16z uh chris dixon anderson andersen horowitz uh launched the largest crypto

fund ever 4.5 billion we're in a bear market 4.5 billion with a b that is insane uh i can't remember what the biggest was before i think it was 2 billion maybe maybe not even that one i think it was 1.5 billion wasn't it katie hans right maybe fun maybe boys one we talked about like a month ago or two months ago i really wish that they would just put all this money into the actual market like buy tokens with it but they're gonna buy pri it's obviously for you know crypto startups and venture and um hey look it's great for the space i actually talked about this talked about this on monday um is like look this bear market's a bit different

than all the other bear markets because we actually have funding right this is the first time we're in a bear market all the companies are not just imploding because their treasuries went to zero um people actually have real money and like it's not stopping it's gonna just keep pouring in 4.5 billion like holy and and i think as we all know bear markets are when you build and if we look back at the [Music] the bear market of the internet era when we were first building the internet web 2 uh well really when we first built web 2. so we had a bear market i can't remember the exact dates but i feel like it was like wasn't it like 99 to like 2005 something like that there was like

a six.com the dot com yeah bust you mean yeah yeah yeah 2000 when it busted i believe right so and it was like yeah the next six seven years and it was it was long like it lasted a long time uh not trying to make any predictions on how long this bear market lasts because i pray to god it doesn't last six years um but uh that that during that bear market was when some of the really all the biggest web 2 companies were built in that bear market right so this is anderson horowitz is doubling down on the opportunity to build right now which if you are a doer and you are listening to this podcast now is the time to build right do not be

afraid of the fact that we're in a bear market take it as this is the opportunity this is when the next biggest web 3 products are all going to be built right and just because we're a bear market it just means that prices are lower it doesn't mean that people are not building anymore and that their innovation is stopped and new people aren't coming in like there's still so much potential in this in a bear market as you can see there's 4.5 billion but to flow in that's just one fund one only um for example our podcast is growing exponentially like so we it's not like in a bear market everything goes to zero uh our podcast a bunch of our clients who have newsletters stuff it's all still growing so like there's still a lot of interest just people aren't putting their money where their mouth is i guess at the

moment and that's it is what it is um but there's so much potential in the space still totally and and as you said there's still buying happening like i'm i'm deep in the nft space and i'm blown away by the number of nfts that have launched in the last few weeks that don't get me wrong a lot do not blow up and do well but there is still projects that are blowing up that people are buying right so there's a lot of money being spent still in the space you know it's not i think that sometimes we think bear market and we think all like you know uh tumbleweeds blowing down a street or something like that and like it's dead

silent but it's not it's not it was the last bear market i don't it's not this one as we can see there's like exactly we literally are about to go through a bunch of announcements and these are huge um okay so this one is not huge it's more on the tech side of things and it's gonna be probably difficult for a lot of people to understand i still don't fully get it but back to what i was talking about about the immutable x and gamestop kind of building for developers so um immutable just announced a new launch and it's basically a cross roll-up liquidity solution across multiple l2 and l3 zk roll ups okay you feel like what basically what it's doing is bringing the next billion

players uh of web 3 games okay so here here's what's what's happening is um in order to bring billions of people into this space uh one blockchain will not be able to do that we all know about the multi-blockchain future and blah blah we've talked about that a million times um ethereum's roadmap and again i talked about this on monday which is roll-ups or layer twos we call them where again there's not just one layer two there's going to be thousands of layer twos okay and they all plug into ethereum and they roll up tens of thousands of transactions and they put it into one transaction on the ethereum layer one now the issue that's that's now happened here is big games like let's say world of

warcraft or call of duty they are going to require their own roll-up they won't be on a like shared roll-up like optimism or arbitrarium where we currently there's a lot of like shared apps because these are so big and will have so many transactions and if you think about a game it's not like these like board yacht club transactions where you have like you know they're worth a hundred thousand dollars or two hundred thousand 000 and they sell like once a week kind of thing these are like micro transactions happening with tokens and with nfts and there's like millions of them happening a day kind of thing right because there's so many users in so many things that happen in these games and these users are playing for like hours and hours a day it is really really big

and it's hard to even wrap your mind around and so basically what happens is immutable x has built this sort of way for games to just come and immediately get their own roll up that's gas less they don't have to deal with any of that there's developer tools and they can build what they want and so now that there's all of these roll-ups in all these games being built on these roll-ups when you have an nft on one of them you need to get that nft from one roll up to another right and right now that isn't possible so you there is no way to move an nft from one roll up to the other and so basically what immutable has done is kind of building like you could think of it as a bridge or a layer above it that just allows you to seamlessly and

now you have to think about it be able to go from one block chain or sorry one roll up to another and you don't even have to do it it just does it in the app for you basically and inside of the game so the developers and the users won't even need to think about that and so they're kind of connecting all these layer twos to do that um and layer threes so um yeah that's i don't know what's what's a layer three okay so i'm not being rhetorical i have this is the first time i've heard the term layer three so the ethereum roadmap is very very i mean look blockchains are very very complicated so layer twos are the scaling solution and this allows us to

get to hundreds of millions of users if we want to get to billions of users we need to actually go multiple layers above this okay so a layer three is what connects into the layer twos which what connects into the layer one and so you can think of the layer three more as i mean there will be apps on layer two but more you can think of layer three is the thing that gets rid of all of the blockchain stuff and so when you're using layer 3 you're basically it's an app layer and you don't even know you're on a blockchain you have no idea what's going on underneath you don't know that you're on immutable or starkware or whatever so it's basically the like layer above that just connects everything and just like um gets moves away from all this blockchain

nonsense and so no one knows that you're using nfts on layer three or that you're using a blockchain or whatever and it will be kind of connecting all of those layer twos but it also does the same thing that layer twos does in the sense that it rolls up a bunch of transactions right which then rolls them up into a layer two which then that rolls up a bunch of transactions and rolls up on to layer one it's a bit crazy to think about but that's the scale that we need for this to work which is why i talk so much about scaling and how important this is and like these like layer one block chains that are just one block chain that's never gonna work like just think of it we need three layers at least probably four for this to really get to the billions of users um and so

yeah that's where this is all going but again most people you're not going to need to know about this because it'll just be all done for you if you want to learn more about blockchains next tuesday we are having our good friend sam andrew on the podcast to talk about blockchains in a in a way that is the average person can understand so tune in for that podcast we will not talk about layer 3s on that podcast it will be a more simple version but an important thing to understand is the blockchain obviously is the core layer of all of this so we will talk more about that next week other big news [Laughter]

sometimes we pause because we look at each other and we're not sure who wants to jump in so apologies for our pauses sometimes it's okay to take a deep breath though you can take a deep breath when we pause openc made a major announcement last week they have created a protocol for nft marketplaces called seaport so openc is a product that allows you to it's a marketplace allows you to buy and trade uh nfts the issue that because of because of open seas participation in the market they started to see the challenges that nft projects we're having in terms of like creating an nft uh there's a lot of

issues around mint copies you know we won't even get into like the okay bears not okay bear situation that happened a couple weeks ago and then and then obviously as users you know the challenges we have so that put openc in a position where they decided okay let's launch a protocol that they will they will use for open c but that anybody can use for an nft marketplace um so the same way basically think about seaport the same way you think about uniswap is the best sort of example so unisop changed the game with our open source decentralized exchange which was part of

what we know is defy summer and in the same way this this move by open c might have the same potential right this might lead nfts to that same path basically openc built so openc is a centralized product okay uh and so what they have just done is built a um decentralized product or a protocol and so for anyone in the web 3 space that's trying to figure out what are the products that are going to make it it is protocols are the things that are going to make it long-term okay that is the whole purpose of this industry is to build decentralized protocols whereby we don't rely on centralized

companies moving forward now they are not all that way of course a lot of web 3 is still centralized um but we are building those protocols out and those take time and so openc saw a need and they built a centralized product because it's fast and easy to do when you control all the everything and they just plugged into um into the web3 world and we're like okay here's a central product so you can buy and sell your nfts but we control everything we don't control your assets because they plugged into it but that's basically it so same with like coinbase for example the first thing they built was not coinbase wallet right or or uniswap version they built a centralized exchange because that's what's easy and fast and it gives them control of everything right not that they want control of everything but it's

just that's the way you build products fast and so if you same with like coinbase's nft marketplace right now it's mainly um centralized but that's because they needed to get out there there's a need for it and then what you do is you start to build the underlying protocols for it and it basically pulls your centralized products out of it and you don't need those anymore so uniswap is the decentralized protocol to coinbase for example right coinbase they own all the exchange all of the transactions that happen uniswap is in a decentralized way no one owns that protocol anyone can build on top of that protocol right and so a lot of the apps that you use like i don't know any of the default apps and things where you need a new a different token under the

hood it's connecting into the uniswap protocol and making those swaps for you using unisoft and you don't even really realize it because again it is a decentralized protocol and the the reason why that's good is that when you build on top of uniswap the term is called the protocol sync thesis i think bankless made this term but people don't want to build on centralized applications because they can just block you at any time or maybe they go out of business or maybe they shut down when you build on a decentralized protocol and you tap into that you know it just works 24 7 it doesn't go down there's no one person that can stop it and block you it's permissionless right and so that's why people are building on ethereum that's why then people build on uniswap and so people don't want to build on openc

because again it's a centralized company but they do want to build on a protocol and so in this instance basically openc has disrupted themselves by building an underlying nft marketplace protocol that anyone can build on and when i say build on i mean the user face so anyone can create a user face on top of this protocol or a ux on top of that protocol so they're kind of disrupting themselves and this is huge we need this for nfts um so kudos to opensuit yeah i think you did a great job explaining this what is a protocol versus what is a product built on top which is a key piece of composability and really understanding the space what i love about this is

this is openc saying to the market let's go bring it on right like they are they are basically opening themselves up they believe they have i mean they do have a massive first mover advantage and i don't remember the exact stats but they've got like 90 percent of the nft market within open c so but they are signaling they're saying hey let the best marketplace win let's decentralize this and let's see who see who wins so they're they're definitely bringing on competition which i just love it's so much in the spirit of web3 and this is when dows become important because when you create a protocol you can't run it through a centralized

company so you need a dow and so the the protocol sync thesis is basically like anything that is the most decentralized that is a protocol sinks down and becomes like part of these like underlying layers that all the other things build on so the more decentralized it is it goes lower down and becomes a more important part of the tech stack so ethereum is the number one that's like that layer one that's down there the layer twos are also decentralized then you have the applications that are protocols like uniswap and maker dial things that you need to do a lot of different things but they're done and they're run by dows specifically and so this will probably be run by a dao we're gonna get to lens protocol which is basically the same thing it's a protocol an underlying protocol for the social layer and this

is gonna you're gonna see this happen with a lot of different um uh use cases i think and that's kind of the idea of what we're building here i love it okay so this is uh mirror which is it's it's basically the web3 version of substack uh it's basically like a newsletter um platform um but in in web3 and so you can like launch tokens through it you can turn things into nfts and basically what they have just launched and introduced is uh writing nfts so you can turn your articles um into nfts and so people who want to support you um can uh can purchase your article uh in you know ethereum or any erc20 and um and own an nft of it and so

does maybe this disrupts you know the the sort of like the paywall version of nfts right like or sorry of newsletters right like usually newsletters are like there's a free site there's a paid side um now maybe it's this kind of gets rid of that and instead just people can i don't know if you want to call it donating but people that want to support i don't really understand like why someone wants to buy a newsletter like an article yeah off someone other than maybe to support them except for like the one example they give here was like um vitalik wrote a white paper for ethereum and that's now like a legendary white paper it's like it's a big deal in the space because it's kind of changed a lot um uh in the in the space and it's kind of the the beginning of web three

so okay i can see some value there it's almost like it's some sort of art and like it's like the constitution you know um so like i get that otherwise though like i don't know i don't see it yet but maybe i'm missing i think i think it's about supporting ideas really uh because i agree with what you're saying it's um it it's not a uh buying a like a written document uh a digital written document you know by a pdf but it's you know online i don't i don't know if i necessarily see that as like a uh as an investment or as a collectible unless it is right but um but like let's say somebody writes a paper and i want to support the

project then i can see that right or let's say somebody's just a really great writer and i want them to write more um so i see it as support uh or i see it as like i don't know being maybe as a signal to to your followers or to your fans you know we talk about uh decentralized social like maybe some of this stuff will be pulled into there where you can show off uh like these are the these are the the ideas that i'm supporting right now right right these are the papers that i think everybody should be reading so i you know i invested in them and they show up high on my my lens protocol page but i still just understand why it needs to be um i need to own it like why not you can

just like it to favorite it you know um i don't know we'll see we'll see where it goes yeah okay so last of the announcements uh and this i don't even want to talk too much about um because i'm kind of over it um tara luna which we've talked about in uh detail previously which imploded uh is basically forking their i don't even know if it's a fork actually but they're creating terra 2.0 it's a new blockchain um and um they voted and the community voted that they should do this and so they're going to create a new blockchain um and basically what they're going to do is carry over all the tokens from the old blockchain and launch it over here into this one so if you held luna tokens

or ust um you will be compensated in some form as to how much i don't really know the only reason i kind of like this is if you skip to the next one i think it's the next thread jay is what they're doing is kind of cool so they're air dropping on may 27th so it's actually tomorrow um and to all the old to the all the holders pre um like it crashing right the holders of luna the holders of ust now there's different types of holders there is like retail right like people like you and i uh there is like the vcs that have been in since the beginning that hold like a lot there are the whales the validators etc and what they're doing here that i think is kind

of interesting is i think it's like 70 or something are the retail people that are getting this but basically what they're doing is all of the vcs in the whales they can't sell um these new tokens they they're invested for like a year or something like that um whereby or but the retail people that get this so anyone who has like x amount under i forget what it is like some sort of amount of luna but under whatever it is 10k under 10. okay okay so 10 000 luna um they just have to hold for 21 days which is just a security reason why they do this after 21 days we are allowed to sell so uh i don't know what's going to happen here this

seems like a disaster to me but it's basically an opportunity for retail to dump on all the vcs which is kind of funny for the next year and then the vcs will unlock in like a year or something and they can do whatever they want so um we'll see what happens uh i think there's like a futures market of this it's like a lot of people are shorting this new token luna 2.0 or whatever i will i don't know i assume i will get these because i did hold some luna um not a lot so i don't really care but um i'm i'm dumping yeah yeah i don't know i mean they're they're they're they're holding on for dear life they're doing the best they can you know yes i feel my heart goes out to anybody who lost big and

luna uh i know it affected a lot of people uh you know their their wealth their livelihoods so if that's you um i'm sorry for that and uh you know keep keep keep being positive and we're here to support you reach out but luna's doing the best they can shout out i guess the good thing about this right and i think the good thing of this when you take tokens out of the picture is there is a big developer community that was building on terra luna and they basically were screwed and can't do anything and it's like well they can't just fork their code over to another blockchain because they write in a different way um and so this gives them an opportunity to start building again will they want to build on this blockchain i have no idea um i also saw

polygon announce a fund where they are going to fund any terra developers to merge and bring their protocols and things their applications over to polygon so they're going to actually fund it for these people so that's kind of cool yeah yeah the other thing that uh i learned from your your article kai on monday was that they're changing the naming of algorithmic stable coins to be called under collateral stable coins which i really like that is a great move for the industry no one is like no one is like actually changing it it's more like they're trying to meme it into yeah they're training right and i think they will we want it to be and yeah i hope so

yeah because that's what it is it's you know it is an underclad stable coin uh okay next up and i'm just looking at the time i'm supposed to have a meeting in two minutes but we're not going to make that so uh let's let's try to get through the rest of this episode as quick as we can here guy is ngmi i i'm definitely in gmi sorry to my client who's gonna be waiting for me for a few minutes apologies um royal royal is a music nft platform uh talk we talked a bunch about music nfts uh kai i know you found out permissionless that there was a lot of talk about music nfts there's so much happening in this space we talked about

it last week in the state of crypto report uh in a16 zez report they talk about music nft so tons happening here i just want to focus on one specific example so royal is a platform that allows a musician to either sell nfts or get a giveaway nfts to their album either like one song or their whole album and so chainsmokers has announced that they are giving away 5 000 nfts for their new album and if you have one of these nfts you will all 5 000 of those people will

split one percent of the royalty profits so let's be clear here this isn't a big money making opportunity uh if the royalty profits of i did some math on this if the royalty profits of this album is 10 million dollars which is a like probably a reasonable guess for chain smokers uh then each nft holder would get 20 bucks so you're not you're not making money off this but i think that the the concept and the idea is really powerful even if you only got 20 bucks that's cool you get to now say that you are a part owner of this album which feels really good

i also wonder if the users will get 20 bucks or they pool all that money and there's a dow now and the dow is a treasury of whatever that is like a hundred thousand dollars or something and now they can go and do something with that right whether they throw an event or they create a product and now this dow has a treasury that's probably where i see it go but i don't know we'll see that's a good idea what i what i really like about this is um chain smokers didn't sell this nft they gave it away to 5 000 fans and they had some way that they went through and picked 5 000 engaged fans based upon i i'm guessing like maybe people have been to concerts or their email list or engagement on social media in some way

they picked five thousand fans so like i thought that was really cool just giving away five thousand nfts um those five thousand fans they can now sell that nft if they want or they can keep it so there's some value for them right away there uh the other thing that you can do with royal is and this is i think one of the things we talk a lot about with nfts is it's all about access right so they can chain smokers can have a contest to their nft holders where you know 100 of them get free tickets to a concert or where all of them get um you know a t-shirt or where they get backstage access if they're at a concert they show your nft and now you get into some particular area of the venue a lot a lot of potential here if you are

a musician highly recommend you check out royal very very cool product and really going to be a big part of the nft space for musicians yeah there was a few talks about music nfts and it's big and it's going to disrupt the music industry big time again it just keeps getting disrupted everything yeah well hopefully the music industry embraces this disruption they didn't exactly embrace the web to destruct disruption they spent all their time in legal battles and in court well here's it doesn't matter if they embrace because it's it's up to the artists the artists just go and use it right you don't need them to embrace anymore they're just they're gone true true unless they adapt and i don't know build

in i don't know marketplaces or something like they're gonna have to build some tech around it but okay sports nfts let's talk about sports uh mlb signed a deal with so rare which is the operator of an nft fantasy game uh this so rare startup is valued at 4.3 billion dollars uh and i can't remember the size of the fantasy sports industry i think it's it's multi-billion dollar industry um i won't be able to find it in this article um but a lot of a lot of people play fantasy sports i used to play fantasy sports kai did you play fantasy sports yep

absolutely i did right and so the way let me just explain the way so rare works so so rare started on football or soccer football not american football soccer uh and so the way it works is you can buy an nft of a player then you take so you buy nfts of players you take those players you build a team and then you enter those teams into tournaments and if your team performs the best then you make money in either eth or or nfts or so rares token so you can actually make money but the

cool thing is they've limited the supply of these players so if we're talking about baseball mike trout one of the best baseball players there will only be let's say there's only a thousand mike trout nfts and so if you buy a micro nft at the beginning of the year and then mike trout starts to do really well throughout the season then you could sell that nft for more because it accrues more value or let's say you buy some other nft of a player who's not very well known and then he becomes the best player this year well then you get value for that so really just bringing nfts to the fantasy sports base which makes so much sense now again though

don't forget about the word nfts what this does is it brings ownership to the fantasy right and fantasy football is cool because people love it because you feel like an owner you got to build a team and like you know you move that team around throughout the year this just adds another layer of like actual ownership and what it does that's really cool is instead of the i forget the names of the companies that you use to like do fantasy like i don't know espn yeah yeah exactly like that they are the ones that would typically decide the price of these players when you're playing with your fantasy and um now what it does is i assume anyway is they no longer decide it's now an open market because you own these things and it just depends on what

the market decides it is so it adds like a better a more real life layer to fantasy football you almost don't even need to call it fantasy anymore um so i think what that's actually super cool be fun can you own these things um like like if you buy the nft of let's say mike trout do you own him for his career i don't think so good question i i think it's every i i don't think so i think it's every season right now thank you that would add another layer of that that would add a horizontal layer you want to sell it before he gets injured or before he gets too old or like i don't know that's crazy that yeah the only reason i say no is because i think that you won't you want new people on boarding every year and if

you if you do that then it's hard to own a monopoly every year but it's true but yeah let's see okay we i i got real i got four minutes left here let's let's try to get through the rest of this we can just go to the nft of the month if you'd like let's do that we can talk about this next time we're going to talk about lens protocol but we're actually having them on the podcast in very soon so we will we'll dive more into it uh at that point so let's go to the nfc of the month because jay needs to um deal with life the nft of the month um i actually don't know what the exact name of it is i think it's uh we're all gonna make a movie w-a-g-m-a-m uh and basically what this is

is um it's called the the infinite machine movie so there's a book called the infinite machine and it's great book if you haven't read it i highly recommend you do it's a really really good book about the sort of history of ethereum um and so like how it was built when vitalik first started and he brought like charles hoskinson the founder of cardano and the founder of polkadot all the founders of these layered one block chains these alt layer ones are like were part of the um uh the genesis of ethereum not all of them but some and anyway so it's kind of this whole story of it going through there's the big dow hack and the bear market and everything um really really interesting story of how sort of basically web 3 or smart country

platform started and so the book was great and then she was like you know what um the author was like we should make a movie and um so a few i can't remember who it was that got in with this but she's got like a big production company et cetera that's involved but basically what they did is to fund all of this they did it through nfts and so they launched um let's see if it has the details in here um x amount of nfts and basically the funds from that went to paying the like the people in the movie the products like the production and all the stuff and um i don't know if it's 100 funded by nfts um but basically what she said in the interview that i saw was um

they started this movie without any money no people were not getting paid at all and everyone was like yeah do the nfts like let's make our money that way we think this is cool and um and so that's how they got the funding and started paying everyone um and so basically what's really interesting about this is the nfts have different traits okay and so some of the nfts allow your names to go in the credit like in the credits some of them allow you to be an extra in the movie uh some of them allow you to join the movie premiere uh so there's like a bunch of different um different things from that and then 10 of the profits from these nfts go into a treasury for a dow and the dow is for the nft holders um

to um basically it's like a content dao i guess is what it's meant to be and it's still not for sure they'll kind of figure that out as a go but basically it's to help people figure out how to make content in this space um and so it's this the profits will go to funding that the style um and so the art of these nfts i don't know if we have any pictures of them do we by any chance jay there if you click on the maybe on the openc link or something we can see them but what's cool is they brought in there it is they brought in a lot of big artists from the web3 space so like the person who designed the ethereum logo uh is a person who was helping with these nfts and there's a bunch of others in the space they

brought them in um to be a part of this so the nf the art is actually quite cool but it also has some like um some um ties back to the the ecosystem so um really really cool i don't know when this movie will come out um but uh it's it's gonna come out like in theaters like it's gonna be a big like proper movie not like an indie film um so this is gonna be a big deal i think at some point and um yeah just super cool that they funded a movie from nmts i love it yeah yeah i think we're seeing we're seeing this more and more i've seen this a few times over the past few weeks actually of nft funded movies and i think there's a platform i can't remember the name of it there's trying to be a

marketplace where you could get funding for your movie using nfts uh yeah we haven't it's funny we talked a lot about we talked a lot about music we talk we've talked about sports today uh we haven't talked as much about movies and tv but that's obviously a big space that will also uh get disrupted by ownership not like again if you hate nfts don't even think about this is out of teas all it is was a funding mechanism and you own 10 of the profits of that funding that's it just ownership digital ownership relax everyone's children they're good they're gonna be really good i promise you're gonna like it a tease you like ownership in the real world you're probably gonna like it digital world too

all right jay get out of here man let's go i gotta go everybody have a great weekend uh if you're not in the discord come to the discord hang out with us chat with us you have any questions from the podcast uh we have a channel for every single podcast that we produce where we discuss and review the podcast together and share thoughts every monday we meet as a community and talk about the podcast and there's some other exciting things coming out of blender academy that calendar are really pumped about to share with you guys in the future um so get involved meet you there see you guys in the discord thanks everyone have a great weekend thank you for listening to web3 academy we hope

this helps you along your web 3 journey if it does please share this episode and subscribe so you don't miss the next one by the way if you have yet to join the discord community you are missing out this is where all the magic happens this is where we learn where we ask questions where we network uh you want to be in there the link to join is in the description below and finally a quick disclaimer nothing in this podcast was financial advice crypto and web3 can be risky you can literally lose it all in fact if you invest on account of what we say you probably will lose it all so don't do that in all honesty the point of this podcast is to remove the noise of markets and price and focus on utility and implementation anyway so you should not take any of this as financial

advice thank you friends and see you in the next one