WEBVTT 1 00:00:00.080 --> 00:00:03.200 But the one thing that decentralization does here, of course, 2 00:00:03.839 --> 00:00:05.320 is that the customer base is. 3 00:00:05.320 --> 00:00:06.839 Not open to anyone. 4 00:00:07.040 --> 00:00:09.039 And when you think about what sort of the role 5 00:00:09.080 --> 00:00:12.800 of advertising, advertising used to be and still is actually 6 00:00:12.800 --> 00:00:16.039 predominantly I push you something and then you look at it, 7 00:00:16.079 --> 00:00:17.600 and if you like it, you might react or you 8 00:00:17.679 --> 00:00:20.679 might not, typically a very low hit rader, whereas in 9 00:00:20.719 --> 00:00:23.440 Web three, because of the whole capital aspect, it's more 10 00:00:23.440 --> 00:00:26.239 of the incentive. So in other words, I give you 11 00:00:26.239 --> 00:00:28.079 an air drop, or I give you a reward or 12 00:00:28.079 --> 00:00:30.920 an experience, and that's the reason why you go with there. 13 00:00:30.960 --> 00:00:37.719 So Web three is much of a pull. 14 00:00:37.880 --> 00:00:40.119 This episode is brought to you by Propy, which is 15 00:00:40.200 --> 00:00:43.719 leading to charge in putting real estate on chain. Propy 16 00:00:43.880 --> 00:00:46.280 is a game changer. You can buy and sell real 17 00:00:46.399 --> 00:00:50.439 estate with cryptocurrencies using the propty platform, which is powered 18 00:00:50.479 --> 00:00:53.159 by a blockchain, of course, and they have a native 19 00:00:53.200 --> 00:00:56.359 token call pro And I've been an investor in the 20 00:00:56.479 --> 00:00:59.960 Propy token since twenty eighteen. So Propy is a licensed 21 00:01:00.159 --> 00:01:04.040 three pioneer operating since twenty seventeen. They have facilitated over 22 00:01:04.120 --> 00:01:07.879 four billion dollars in transactions. They're putting titles and deeds 23 00:01:07.920 --> 00:01:11.239 on chain. They use Coinbase for their crypto escro service, 24 00:01:11.599 --> 00:01:14.359 so this is a great platform. And once again they 25 00:01:14.359 --> 00:01:16.200 are ahead of the curve when it comes to putting 26 00:01:16.200 --> 00:01:18.879 real estate on chain. And they just launched a great 27 00:01:18.920 --> 00:01:21.640 campaign where you can earn some of the Propy tokens 28 00:01:22.040 --> 00:01:25.280 and it's simply by doing tasks such as sharing their 29 00:01:25.359 --> 00:01:29.480 vision video, signing up and inviting a friend, and much more. So. 30 00:01:29.560 --> 00:01:31.799 If you'd like to learn more about Propy, visit the 31 00:01:31.840 --> 00:01:34.840 link in the description. Hey, everybody, welcome into the Thinking 32 00:01:34.879 --> 00:01:37.560 Crypto podcast. I'm your host Tony Edward and we are 33 00:01:37.599 --> 00:01:41.319 recording at Station three in New York's Financial District. And 34 00:01:41.599 --> 00:01:44.599 joining me is Yatsu who is the co founder and 35 00:01:44.680 --> 00:01:47.519 chairman of Anamoga Brands yacht. Thank you so much for 36 00:01:47.560 --> 00:01:48.439 taking the time to do this. 37 00:01:48.560 --> 00:01:50.040 Thank you for having me. It's great pleasure. 38 00:01:50.280 --> 00:01:53.680 You just got off a flight, so thank you so much. 39 00:01:53.719 --> 00:01:56.480 And this is round two of us chatting. We spoke 40 00:01:56.480 --> 00:01:59.079 about a month ago. We ran out of time because 41 00:01:59.079 --> 00:02:01.000 there's so much a talk as it relates to Web 42 00:02:01.040 --> 00:02:02.840 three and the impact it's going to have on society. 43 00:02:02.879 --> 00:02:06.840 So I wanted to continue the conversation, so let's kick 44 00:02:06.840 --> 00:02:09.360 it off. Why should people care about Web three? 45 00:02:10.479 --> 00:02:14.280 Well, geez, start right off with the big one, right, I. 46 00:02:14.199 --> 00:02:18.439 Mean, so when you think about Web three, maybe before 47 00:02:18.439 --> 00:02:21.199 we talk about period of the technology, the outcome of 48 00:02:21.199 --> 00:02:25.080 Web three, which obviously affects things like decentralization, you know, 49 00:02:25.120 --> 00:02:29.400 through blockchain technology and tokenization, which basically creates more democratic 50 00:02:29.479 --> 00:02:32.639 access to financial assets for instance. That whole framework opens 51 00:02:32.719 --> 00:02:36.280 up all these new opportunities, creates a fair better and 52 00:02:36.360 --> 00:02:38.560 more democratic type of Internet. So we should really all 53 00:02:38.560 --> 00:02:40.759 care about it because it's the way in which we 54 00:02:40.759 --> 00:02:44.199 can truly receive the value that we generate. 55 00:02:44.000 --> 00:02:46.039 In the digital realm. Now. 56 00:02:46.360 --> 00:02:49.080 When the Internet first formed, the Internet was really you know, 57 00:02:49.080 --> 00:02:51.039 we're talking about Web one now like in the nineties, 58 00:02:51.639 --> 00:02:53.759 it was really something that was an add on. 59 00:02:53.680 --> 00:02:55.280 To the physical world, right. 60 00:02:55.319 --> 00:02:57.199 It was like an extension to what we were doing. 61 00:02:57.240 --> 00:02:59.960 It was not considered our life per se. Most people 62 00:03:00.039 --> 00:03:03.159 were still reading magazines and people doing stuff offline as 63 00:03:03.199 --> 00:03:05.599 it were, and there was this Internet thing that was 64 00:03:05.639 --> 00:03:09.120 extending our services and our ability to buy stuff and 65 00:03:09.159 --> 00:03:13.479 do stuff and so forth. But digital sort of digital 66 00:03:13.520 --> 00:03:16.560 things didn't have as much intrinsic value back in the day. 67 00:03:17.639 --> 00:03:20.039 But today because of the data construct and because of 68 00:03:20.120 --> 00:03:23.400 network effects. And this is the thing. Network effects are 69 00:03:23.439 --> 00:03:25.439 the most valuable thing we think in the world today. 70 00:03:25.560 --> 00:03:28.400 And the reason why they're valuable is because actually they're 71 00:03:28.439 --> 00:03:31.479 a way in which we really create value out of 72 00:03:31.479 --> 00:03:33.919 our social connections and out of our networks per se. 73 00:03:33.960 --> 00:03:36.479 Like even think about it, just you know, forget technology 74 00:03:36.479 --> 00:03:39.240 for a moment, right, what are you as a human 75 00:03:39.719 --> 00:03:44.120 without your network, without your friends, without your business relationships? 76 00:03:44.319 --> 00:03:47.000 Like would people talk to you if you didn't have 77 00:03:47.039 --> 00:03:49.960 your business connections as an example, would you be a 78 00:03:49.960 --> 00:03:53.000 member or have social connections if you didn't have a family, 79 00:03:53.400 --> 00:03:55.400 Like I mean, And one of the reasons why nations 80 00:03:55.400 --> 00:03:58.599 and society has actually come together is because there's a 81 00:03:58.599 --> 00:04:01.360 sense of belonging as well, I'm an American, or I'm 82 00:04:01.479 --> 00:04:05.039 Chinese or I'm wherever. Right, they actually create that sense 83 00:04:05.039 --> 00:04:08.000 of belonging, and that sense of belonging gives you strength 84 00:04:08.039 --> 00:04:10.080 in the network. Right, that's just as a basic level. 85 00:04:10.759 --> 00:04:14.120 And when you think of technology companies like social media companies, 86 00:04:14.120 --> 00:04:17.079 which are the most powerful ones in the world, Facebook, TikTok, 87 00:04:17.199 --> 00:04:19.600 and frankly even things like Apple. When you think of Apple, 88 00:04:19.680 --> 00:04:22.720 it's really a powerful network. You have an Apple, I 89 00:04:22.720 --> 00:04:24.079 have to buy an Apple so we can air drop 90 00:04:24.079 --> 00:04:27.120 each stuff to the other, right, Or I use these 91 00:04:27.160 --> 00:04:30.160 applications that are generated, you know, through the power of 92 00:04:30.160 --> 00:04:33.639 the networks of others, because I'm now joining an application 93 00:04:33.720 --> 00:04:35.680 because ten thousand other people are joining it, right. So 94 00:04:35.720 --> 00:04:38.399 it's really these network effects that make them so valuable. 95 00:04:38.720 --> 00:04:40.920 But what's happened in Web two is that these network 96 00:04:40.920 --> 00:04:45.079 effects actually were completely controlled by these large companies, and 97 00:04:45.160 --> 00:04:47.360 we don't have an ability to own a piece of 98 00:04:47.360 --> 00:04:50.319 that stake that network, so we're kind of building value 99 00:04:50.319 --> 00:04:52.879 on these networks without ever receiving it. Now that means 100 00:04:52.879 --> 00:04:56.560 also we deliver data, we deliver information, and then that 101 00:04:56.680 --> 00:05:00.560 data becomes things like open AI and becomes CHATGBT, self 102 00:05:00.639 --> 00:05:02.839 driving cars, so all that value is generated. 103 00:05:02.879 --> 00:05:03.399 I think about it. 104 00:05:03.439 --> 00:05:06.839 The top companies in the world, they're all companies that 105 00:05:06.920 --> 00:05:10.160 have exclusive access to the network effects. But where does 106 00:05:10.160 --> 00:05:12.439 that value come from. It comes from us as users, 107 00:05:12.879 --> 00:05:15.839 and we don't actually receive fair value for that. But 108 00:05:16.000 --> 00:05:18.480 part of the reason is that we weren't really able 109 00:05:18.600 --> 00:05:22.839 to encapsulate the value of a network effect. It didn't exist. 110 00:05:23.319 --> 00:05:25.839 And the example I like to give for this one 111 00:05:25.879 --> 00:05:31.480 is that you know, before, like before sort of intellectual 112 00:05:31.480 --> 00:05:34.079 property rights, we didn't have a way to encapsulate the 113 00:05:34.160 --> 00:05:37.240 value of our ideas either, which are equally virtual. Right, 114 00:05:37.720 --> 00:05:41.240 and when we were able to have IP rights, copyrights, 115 00:05:41.279 --> 00:05:45.519 you know, trademarks, pattern rights. Actually that created an incredible 116 00:05:45.519 --> 00:05:49.160 industry which today is employing more than half of I 117 00:05:49.160 --> 00:05:52.759 think roughly half of Americans, right, And I think I 118 00:05:52.759 --> 00:05:54.560 think about the top top companies in the world, whether 119 00:05:54.600 --> 00:05:57.000 it's Microsoft or Apple or Google, these are all companies 120 00:05:57.680 --> 00:06:00.600 that exist on virtual value over the Internet, actual property 121 00:06:00.639 --> 00:06:04.839 rights of their trademarks and and their patterns and trade secrets. Right, 122 00:06:04.879 --> 00:06:07.199 these are this is this is their value. 123 00:06:07.319 --> 00:06:07.839 And the. 124 00:06:09.319 --> 00:06:12.480 And and again you know they were benefiting from the 125 00:06:12.560 --> 00:06:15.040 ability to own this. And now we have this new 126 00:06:15.199 --> 00:06:18.199 new new property, right this this network sort of effect 127 00:06:18.319 --> 00:06:22.439 that we can now own through tokenization. Imagine, you know, 128 00:06:22.519 --> 00:06:26.759 if every user that was on Instagram were actually also 129 00:06:26.879 --> 00:06:31.000 a kind of stakeholder of Instagram, and the value they 130 00:06:31.000 --> 00:06:34.480 contribute to the network would actually be something that they 131 00:06:34.800 --> 00:06:37.120 sort of gives them a stake in the network. Not 132 00:06:37.160 --> 00:06:39.199 only would it be more powerful and would create more 133 00:06:39.240 --> 00:06:41.639 sort of sort of a tribal effect between people as 134 00:06:41.639 --> 00:06:44.199 we see in blockchain, I would also allow them to 135 00:06:44.240 --> 00:06:47.079 participate in the growth of the network, right and and 136 00:06:47.079 --> 00:06:48.879 and it would create a sort of a better outcome, 137 00:06:48.920 --> 00:06:50.959 and that's exactly what we see here. I think of 138 00:06:51.199 --> 00:06:54.000 likes and follows as an example. Even though it's social currency, 139 00:06:54.360 --> 00:06:56.120 it's a form of currency and it's a form of 140 00:06:56.160 --> 00:06:58.959 network value, right. I mean, the fact that someone has 141 00:06:59.000 --> 00:07:01.360 a million followers and someone as one hundred thousand followers 142 00:07:01.560 --> 00:07:04.279 is a clear distinction of the power of your network 143 00:07:04.279 --> 00:07:06.680 and the value that you could derive from that. But 144 00:07:06.759 --> 00:07:08.920 actually it's really just rented value, and we need to 145 00:07:08.920 --> 00:07:10.480 own it. And that's what web three is able to 146 00:07:10.480 --> 00:07:12.399 do with digital property rights, the. 147 00:07:12.399 --> 00:07:15.560 Idea of network effects and met house law and reads law. 148 00:07:15.600 --> 00:07:18.360 It's so fascinating to me because, as you you know, 149 00:07:18.839 --> 00:07:22.639 describe it so well, these networks existed in the physical 150 00:07:22.639 --> 00:07:25.399 world even before the Internet, but now it's on the Internet. 151 00:07:25.519 --> 00:07:28.240 And to your point, these networks have power because there's 152 00:07:28.279 --> 00:07:30.839 actual people participating. It's so fascinating. 153 00:07:30.879 --> 00:07:34.720 And I think the thing is it's deeply human. I mean, 154 00:07:34.800 --> 00:07:38.319 we are sort of we are social creatures. You know, 155 00:07:38.560 --> 00:07:41.920 why are things like you know, what is the ultimate 156 00:07:41.920 --> 00:07:45.399 outside of capital punishment, right, what is the ultimate punishment 157 00:07:45.879 --> 00:07:47.879 that we have in our social society? You go to 158 00:07:47.879 --> 00:07:51.240 prism and what does it mean? You're isolated from society? 159 00:07:51.399 --> 00:07:53.279 That's the penalty. I mean, just if you think of this, 160 00:07:53.720 --> 00:07:57.360 you know, why is that penalty so excruciating because that 161 00:07:57.439 --> 00:08:00.759 means we're locked out of our friends, our family, our networks, 162 00:08:00.920 --> 00:08:04.720 our social environment. So we're robbing them of their social agency, 163 00:08:04.800 --> 00:08:07.240 which and that's exactly why it's such a big punishment. 164 00:08:07.839 --> 00:08:11.439 So that means really we crave social attention and we 165 00:08:11.480 --> 00:08:13.560 crave you know, I'm not saying that everyone is an extrovert, 166 00:08:14.000 --> 00:08:17.120 but even introverts have strong social bombs. So you could 167 00:08:17.240 --> 00:08:20.439 argue that some people have less connections, but they're very strong, 168 00:08:20.839 --> 00:08:23.519 and some people have many connections and maybe they're arguably weaker, 169 00:08:23.560 --> 00:08:25.680 but the point is that they're still social in nature 170 00:08:25.959 --> 00:08:27.959 and they want that. And so what the social media 171 00:08:27.959 --> 00:08:31.480 platforms and frankly, what technology companies have figured out is 172 00:08:31.519 --> 00:08:34.799 that we can harness that social energy and that social 173 00:08:34.879 --> 00:08:36.799 value that we have as humans and we can make 174 00:08:36.799 --> 00:08:38.559 a lot of money from that in the form of advertising. 175 00:08:39.159 --> 00:08:42.039 And you know advertising, you know, online advertising today is 176 00:08:42.039 --> 00:08:44.879 about a one point one trillion dollar market in terms 177 00:08:44.919 --> 00:08:48.360 of revenue that it generates. But it is only possible 178 00:08:48.639 --> 00:08:51.480 because of us as humans, And how much do we 179 00:08:51.519 --> 00:08:54.519 actually get paid for having engaged in those networks? And 180 00:08:54.559 --> 00:08:56.799 the answers, of course, a big fat zero, and again 181 00:08:56.840 --> 00:08:57.679 Web three solves that. 182 00:08:58.559 --> 00:09:01.080 It's so fascinating. So the let's say, the folks who 183 00:09:01.080 --> 00:09:03.559 are watching listening to this, what advice would you give 184 00:09:03.600 --> 00:09:06.279 to them to prepare for this change that's happening. How 185 00:09:06.279 --> 00:09:09.240 can they not be disrupted and you know, be ahead 186 00:09:09.240 --> 00:09:11.000 of the curve with Web three adoption. 187 00:09:11.200 --> 00:09:13.320 So the thing that a lot of people, you know, 188 00:09:13.360 --> 00:09:15.159 we talked a lot about network effects and the value 189 00:09:15.200 --> 00:09:19.759 of the networks, but what blockchain really does is, through tokenization, 190 00:09:20.519 --> 00:09:24.840 makes something into a capital acid. So a token could 191 00:09:24.879 --> 00:09:27.360 be especially meme coins, good or bad. This is not 192 00:09:27.440 --> 00:09:30.000 about sort of endorsing them, but you know, owning a 193 00:09:30.039 --> 00:09:33.320 meme coin is arguably like owning a kind of network 194 00:09:33.360 --> 00:09:36.679 effect of a certain community, right, And because of the token, 195 00:09:37.039 --> 00:09:39.679 it has now become a capital asset of that community. 196 00:09:40.240 --> 00:09:40.360 Right. 197 00:09:40.399 --> 00:09:42.879 Whether it's worth a lot or worth a little, that 198 00:09:43.039 --> 00:09:45.840 is sort of secondary. The primary point is that now 199 00:09:45.879 --> 00:09:49.200 I own something that has a capital value as a 200 00:09:49.200 --> 00:09:52.080 capital asset of a kind of network state or network 201 00:09:52.200 --> 00:09:56.320 sort of asset. So that means what tokenization does is 202 00:09:56.360 --> 00:10:01.799 it makes everything virtual but also physical in to a 203 00:10:01.919 --> 00:10:06.120 into capital acid and it enhances it by creating more 204 00:10:06.159 --> 00:10:09.279 network effects. So for instance, a stable coin, a stable 205 00:10:09.279 --> 00:10:11.919 coin is an r WA, so it has it still 206 00:10:11.960 --> 00:10:14.360 has a you know, it's it's it has you know, 207 00:10:14.360 --> 00:10:16.279 people use it for dollars and spend money and so on. 208 00:10:16.559 --> 00:10:18.679 But the moment you tokenize it, you add a new 209 00:10:18.759 --> 00:10:22.279 layer making it into another type of network asset on 210 00:10:22.279 --> 00:10:25.159 top of it. So actually it extends the value and 211 00:10:25.200 --> 00:10:27.960 the power or more specifically the power and the distribution 212 00:10:28.399 --> 00:10:31.600 of the dollar by tokenizing it, and so it creates 213 00:10:31.639 --> 00:10:34.200 more network value and has more distribution, which is the 214 00:10:34.240 --> 00:10:36.799 reason why stable coins are sort of the number one 215 00:10:36.879 --> 00:10:39.840 use case on DeFi because of course you have you're 216 00:10:39.919 --> 00:10:41.919 using it in real life and as a value for that, 217 00:10:42.279 --> 00:10:46.440 but also it extends it. It makes the the dollar 218 00:10:46.600 --> 00:10:49.159 more of a network asset. So when you look at 219 00:10:49.240 --> 00:10:51.360 sort of other token ecosystems, you know, whether this is 220 00:10:51.399 --> 00:10:55.440 an ethereum or solana, right, you don't buy them, you know, 221 00:10:55.480 --> 00:10:58.639 obviously you hope that there's value there, but you don't 222 00:10:58.639 --> 00:11:01.480 buy them because they give you great yield or because 223 00:11:02.200 --> 00:11:04.600 there's better yield products Frctally you get better yield from 224 00:11:04.600 --> 00:11:06.480 treasuries and you know ethereums taking right. 225 00:11:07.279 --> 00:11:07.960 You buy it. 226 00:11:07.840 --> 00:11:11.399 Because you believe that the value will be more will 227 00:11:11.440 --> 00:11:14.159 sort of increase because of what because of the network state, 228 00:11:14.480 --> 00:11:16.919 because more people will want it, because more people will 229 00:11:17.000 --> 00:11:19.759 use it, It's utility will increase, its network state will increase. 230 00:11:19.960 --> 00:11:23.000 And that's the foundation and the formation of that value. 231 00:11:24.559 --> 00:11:27.879 And so the question that companies in Web three who 232 00:11:27.919 --> 00:11:29.279 want to enter the Web three have to think of 233 00:11:29.399 --> 00:11:32.639 is how do I and what are the type of 234 00:11:32.759 --> 00:11:37.519 either networks or products and services or applications that would 235 00:11:37.840 --> 00:11:40.519 that I would benefit from if they were turned into 236 00:11:40.519 --> 00:11:43.600 a capital assets. So I give you an example for 237 00:11:43.639 --> 00:11:47.080 instance in you know, imagine if the music industry didn't 238 00:11:47.120 --> 00:11:51.039 have intellectual property protection, there would be no music industry 239 00:11:51.759 --> 00:11:54.240 because musicians would have their music gripped up all the time. 240 00:11:54.480 --> 00:11:57.159 There we know Taylor Swift, no Michael Jackson, no Beatles, 241 00:11:57.159 --> 00:12:00.919 no library. Right, And this is by way something that 242 00:12:01.200 --> 00:12:04.720 back in history people recognize, which is why I think 243 00:12:04.799 --> 00:12:07.759 it was in the sixteenth century it's called the Statute 244 00:12:07.759 --> 00:12:11.159 of Ann where they for the first time recognized copyright 245 00:12:11.159 --> 00:12:15.039 for authors because back then authors were really the sort 246 00:12:15.080 --> 00:12:18.039 of you know, progenitors of a form of intellectual property 247 00:12:18.080 --> 00:12:20.559 right in terms of writing books and stories, but the 248 00:12:20.720 --> 00:12:24.279 power belonged to the publishers because they're the ones distributing it. 249 00:12:24.440 --> 00:12:27.240 The authors actually didn't have recognition for being creators, so 250 00:12:27.279 --> 00:12:29.120 they're basically always kind of ripped off, kind of sound 251 00:12:29.120 --> 00:12:32.600 similar to where we are today. And then by recognizing 252 00:12:32.679 --> 00:12:36.679 that through the Statute of Anne, creators had a way 253 00:12:36.679 --> 00:12:38.799 in which they could now fairly collect the income because 254 00:12:38.799 --> 00:12:41.559 it was their property. They could also sell it on say, hey, 255 00:12:41.559 --> 00:12:43.080 you know what I own these book publishing rights, I 256 00:12:43.080 --> 00:12:44.720 can sell it to you, or I can share revenue 257 00:12:44.799 --> 00:12:47.120 that kind of stuff, because it became a capital asset. 258 00:12:47.440 --> 00:12:50.679 And what happened was it sort of was the beginning 259 00:12:50.720 --> 00:12:53.639 in the foundation where you know, all these new authors, 260 00:12:53.720 --> 00:12:57.240 you know, whether it's Jane Austen, Charles Dickens or science writers, 261 00:12:57.480 --> 00:13:00.639 they all ended up emerging because now it could actually 262 00:13:00.679 --> 00:13:03.519 do research, or write books or write stories in which 263 00:13:03.799 --> 00:13:06.039 there was a commercial incentive to do so, because now 264 00:13:06.080 --> 00:13:08.720 actually could make money from that which then created the 265 00:13:08.720 --> 00:13:11.559 flourishing of that industry. And the same is true for 266 00:13:11.600 --> 00:13:14.000 all intellectual property, right, whether this is music, whether this 267 00:13:14.159 --> 00:13:17.440 is pharmaceuticals, whether this is technology. The fact that we 268 00:13:17.440 --> 00:13:20.159 can protect that actually gave an incentive for people to 269 00:13:20.200 --> 00:13:24.840 build and advance essentially, you know, technology in society per se. 270 00:13:25.240 --> 00:13:28.399 So now the problem though, sort of a long winded 271 00:13:28.399 --> 00:13:30.720 way of saying this. The problem though, is that the 272 00:13:30.799 --> 00:13:34.840 cost of doing so is protected only through a legal framework. 273 00:13:35.679 --> 00:13:36.960 So in other words, if I want to protect my 274 00:13:37.000 --> 00:13:39.919 intellectual property right as a musician, I got to pay 275 00:13:40.080 --> 00:13:42.600 you know, an IP lawyer, and I got a trademark, 276 00:13:42.840 --> 00:13:45.200 and that costs a certain amount of money, which means 277 00:13:45.200 --> 00:13:47.039 that ILL first have to make a certain amount of 278 00:13:47.039 --> 00:13:49.360 money with my music or with whatever I'm doing before 279 00:13:49.399 --> 00:13:54.200 it's even worth protecting intellectually. Now, with blockchain, though, I 280 00:13:54.240 --> 00:13:56.960 can protect or at least prove the provenance of my 281 00:13:57.039 --> 00:13:59.360 creation for less than a dollar, for instance, like in 282 00:13:59.360 --> 00:14:00.240 the form of Anna. 283 00:14:01.559 --> 00:14:02.399 And immediately right. 284 00:14:02.480 --> 00:14:05.320 And you know, while some people might say, hey, I 285 00:14:05.360 --> 00:14:07.960 had that idea as well, there's a timestamp so you 286 00:14:08.000 --> 00:14:10.679 can prove that, or maybe there's some kind of settlement 287 00:14:10.720 --> 00:14:13.039 that happens but the point is that you can now 288 00:14:13.080 --> 00:14:15.679 prove your origin and so we did this, for instance 289 00:14:15.720 --> 00:14:18.399 with one of our portfolios called tiny Tap, which is 290 00:14:18.440 --> 00:14:23.320 an education platform. What they did was they created NFTs 291 00:14:23.399 --> 00:14:26.919 out of teaching material from teachers. So a teacher would 292 00:14:26.960 --> 00:14:30.000 have created some new teaching content with their platform with 293 00:14:30.039 --> 00:14:33.840 AI and then turned it into an NFT that they 294 00:14:33.840 --> 00:14:37.559 would then sell on to you know, if they wanted to, 295 00:14:38.000 --> 00:14:39.720 because it would make like ten or twenty dollars a 296 00:14:39.759 --> 00:14:42.399 yield every year as a capital asset, maybe for fifty 297 00:14:42.399 --> 00:14:46.399 one hundred dollars right. And it's only possible because now 298 00:14:46.399 --> 00:14:50.120 that teaching content is now become a capital asset through tognization. 299 00:14:51.200 --> 00:14:53.240 So that means you can and it means you can 300 00:14:53.279 --> 00:14:57.519 turn anything that was virtual technically virtual into this kind 301 00:14:57.559 --> 00:14:59.600 of tech capital asset. So for gaming, you could do 302 00:14:59.639 --> 00:15:01.919 this with game items. For instance, you know, your sword 303 00:15:01.919 --> 00:15:04.519 could be an NFT. A virtual currency could be tokenized, 304 00:15:04.879 --> 00:15:07.039 and you know, whether it has value or not will 305 00:15:07.039 --> 00:15:09.879 depend on you know, maybe the utility and the network 306 00:15:09.879 --> 00:15:12.240 effects inherent. But the point is now it is a 307 00:15:12.240 --> 00:15:15.320 capital acid. So the question I think most companies should 308 00:15:15.320 --> 00:15:18.799 think of themselves is, you know, outsort of from a 309 00:15:18.799 --> 00:15:22.519 creation standpoint, like what type of ideas products and services 310 00:15:22.559 --> 00:15:24.679 don't have that could be turned into capital acid. The 311 00:15:24.720 --> 00:15:27.320 second one, of course, is that you know Web three 312 00:15:27.600 --> 00:15:30.000 is a new wealth class, right, so the people who 313 00:15:30.000 --> 00:15:32.879 are generating wealth and blockchain are a lot of people 314 00:15:32.919 --> 00:15:35.240 who have never been sort of traditional don't come from 315 00:15:35.279 --> 00:15:38.120 banking or don't come from traditional sectors, which means that 316 00:15:38.200 --> 00:15:41.000 also you can consider them as new customers, like I 317 00:15:41.039 --> 00:15:42.799 see them really like the emergence of a new nation. 318 00:15:42.840 --> 00:15:45.679 It's kind of like, you know, like fifteen years ago, 319 00:15:46.200 --> 00:15:48.480 you know, suddenly you knew Chinese tours were coming all 320 00:15:48.519 --> 00:15:51.879 over the world because they had money, right, So maybe 321 00:15:51.919 --> 00:15:54.159 you haven't business opportunity and how do you service them? 322 00:15:54.159 --> 00:15:56.080 So that's the other opportunity, which is you know, there's 323 00:15:56.120 --> 00:15:58.320 a whole new wealth class that's coming. They've got a 324 00:15:58.360 --> 00:16:00.480 lot of money. You're probably sitting a lot of bitcoin 325 00:16:00.600 --> 00:16:03.679 or ethereum maslana or some some some lucky people traded, 326 00:16:03.799 --> 00:16:05.919 you know, with a lot of meme coins, like do 327 00:16:05.960 --> 00:16:08.519 you have a product for them? Right, And a lot 328 00:16:08.519 --> 00:16:10.519 of that comes in the form of NFTs and digital 329 00:16:10.559 --> 00:16:12.679 assets of course, but of course, whether if you're a 330 00:16:12.679 --> 00:16:16.240 company and that's what luxury companies really understood. Luxury companies 331 00:16:16.240 --> 00:16:18.600 started saying, oh, okay, you know this whole sort of 332 00:16:18.639 --> 00:16:22.360 you know, Lambo and Gucci and Ferrari type of sort 333 00:16:22.399 --> 00:16:24.519 of sort of meta. That's one, But of course the 334 00:16:24.600 --> 00:16:25.960 other one is, you know, they were one of the 335 00:16:26.000 --> 00:16:28.639 first to do things like mashups with like the Sandbox, 336 00:16:28.960 --> 00:16:31.200 with board apes, with crypto punks, and they made a 337 00:16:31.240 --> 00:16:35.000 lot of money right because they understood, you know, in particular, 338 00:16:35.120 --> 00:16:37.240 this is a new wild class. What can we sell 339 00:16:37.279 --> 00:16:40.559 them that they would appreciate? And I think you can 340 00:16:40.600 --> 00:16:42.840 also look at the luxury companies for some inspiration around 341 00:16:42.840 --> 00:16:43.480 how they did it. 342 00:16:43.960 --> 00:16:46.600 So do you think, you know, majority of companies and 343 00:16:46.639 --> 00:16:49.879 brands need to start putting together a web three strategy 344 00:16:49.919 --> 00:16:52.399 where whether it be NFTs or they do some sort 345 00:16:52.399 --> 00:16:57.919 of social token to maintain customers, you know, keep customers 346 00:16:58.000 --> 00:17:02.720 coming back, retention and even branching out to your point 347 00:17:02.720 --> 00:17:05.440 to the new generation who are more digital focused and 348 00:17:05.480 --> 00:17:06.640 a new wealth class. 349 00:17:07.079 --> 00:17:08.759 So there's so many dimensions. I mean, I don't think 350 00:17:08.759 --> 00:17:10.559 we can go through all of them. But the one 351 00:17:10.599 --> 00:17:14.440 thing that decentralization does here, of course, is that the 352 00:17:14.519 --> 00:17:17.400 customer base is not open to anyone. And when you 353 00:17:17.400 --> 00:17:21.119 think about sort of the role of advertising, advertising used 354 00:17:21.119 --> 00:17:24.319 to be and still is, actually predominantly I push you 355 00:17:24.400 --> 00:17:26.400 something and then you look at it, and if you 356 00:17:26.519 --> 00:17:28.759 like it, you might react or you might not, typically 357 00:17:28.799 --> 00:17:31.680 a very low hit rate, whereas in Web three because 358 00:17:31.720 --> 00:17:34.160 of the whole capital aspect, it's more of the incentive. 359 00:17:34.880 --> 00:17:36.799 So in other words, I give you an air drop, 360 00:17:37.119 --> 00:17:39.240 or I give you a reward or an experience, and 361 00:17:39.720 --> 00:17:41.400 that's the reason why you go there. So Web three 362 00:17:41.480 --> 00:17:44.759 is much more pull. And of course, you know, if 363 00:17:44.839 --> 00:17:46.119 you do pull badly, you. 364 00:17:46.039 --> 00:17:47.119 Get lots of bots and so on. 365 00:17:47.200 --> 00:17:49.400 But assuming you do it the right way, you can 366 00:17:49.440 --> 00:17:52.160 now actually look at their assets and you can target them. 367 00:17:52.160 --> 00:17:55.880 So you know, what would the advertising industry pay for 368 00:17:55.960 --> 00:17:59.680 if you could genuinely target every person who owns a Rolex, 369 00:18:00.960 --> 00:18:02.759 Like I know you owned it, and I know you 370 00:18:02.799 --> 00:18:05.839 purchased it because on chain I can see proof that 371 00:18:05.880 --> 00:18:08.720 you have it. You can't do this in the physical world, right, 372 00:18:08.920 --> 00:18:11.640 you know, Like you know, I don't know how many 373 00:18:11.839 --> 00:18:14.400 I don't know how many sort of followers Roles has 374 00:18:14.440 --> 00:18:16.359 on the Instagram page, but I'm gonna assume it's millions. 375 00:18:16.839 --> 00:18:18.680 But there are not millions of rolics owners out there, 376 00:18:18.720 --> 00:18:21.920 for instance, right, So you're really when you're targeting that audience, 377 00:18:21.960 --> 00:18:25.319 you're targeting an aspirational audience. But actually, who can really 378 00:18:25.359 --> 00:18:28.200 afford a rolics is maybe the customer you want, right, 379 00:18:28.319 --> 00:18:30.880 and you are willing to pay much more per user 380 00:18:31.079 --> 00:18:33.359 for that because there's an actual target as supposed to 381 00:18:33.400 --> 00:18:36.480 distributed value where maybe less than one or two percent 382 00:18:36.559 --> 00:18:38.039 is actually the target you want to reach, which is 383 00:18:38.079 --> 00:18:42.000 how advertising works generally today. So if you can do that, 384 00:18:42.200 --> 00:18:43.640 then the other thing is that the person on the 385 00:18:43.680 --> 00:18:47.759 other side receives an appropriate reward for taking that incentive, 386 00:18:47.799 --> 00:18:50.200 and you can prove it because it's on chain, whether 387 00:18:50.599 --> 00:18:54.119 he owns the NFT or he has you know, you know, whatever. Way, 388 00:18:54.160 --> 00:18:56.359 because of on chanine dynamics, you can prove that you 389 00:18:56.359 --> 00:18:58.519 can basically measure his reputation and give value that way. 390 00:18:58.559 --> 00:19:00.799 So again, you know, that means that if I'm, for instance, 391 00:19:00.920 --> 00:19:03.039 launching a game and my web two company and I'm 392 00:19:03.079 --> 00:19:05.759 launching a game, I could actually target web through users 393 00:19:05.799 --> 00:19:09.400 based on what gaming assets they have. So imagine and 394 00:19:09.480 --> 00:19:11.359 this is never going to happen because Epic wouldn't want 395 00:19:11.400 --> 00:19:12.880 to sort of they have a different view about how 396 00:19:12.920 --> 00:19:15.880 they want to protect their customers. But if all the 397 00:19:16.000 --> 00:19:18.559 and if all the skins in Fortnite were actually NFTs, 398 00:19:19.200 --> 00:19:21.880 then you as a game company could simply offer utility 399 00:19:22.240 --> 00:19:23.720 for those NFTs in a new game. 400 00:19:24.279 --> 00:19:24.920 Right, So you. 401 00:19:24.880 --> 00:19:27.279