Hello!
Today I’d like to share with you the Japanese translation of Tytan’s speech at the recent ETHDenver!
It took me quite a while to type it out after watching the subtitles.
It took me a while to type it out, but I hope you enjoy it! Here it is!
Here is the video of the speech.
https://youtu.be/DVP3DgGygOk
I’m otherwise known as Tytaninc on twitter.
I tweet a lot so if you guys follow me on twitter, good chances are you’re gonna get wrecked by my notifications.
But essentially I’m actually one of the co-founders and director of business development at NFTY labs.
And we’ll be talking about where utility NFTs are going next. But before I do that, quick questions:
Who in this room owns at least one NFTs? Let’s see a raise of hands??
Okay that’s pretty good!!
All right there’s actually not that many NFT talks here so I’m actually surprised that more of you guys own NFTs.
But you know, you probably own NFTs, but you’re probably wondering if you know what NFTs can do.
Well that’s the purpose of this conversation.
I’m Tytaninc, I’ve actually been in the industry since 2017, so I’ve had a chance to meet a lot of really cool people.
I’ve traveled across Asia. I spent nine months in Asia actually meeting a lot of really cool crypto people, built a pretty solid network out there and actually happened to meet my co-founders and CEO Lawrence, who actually had one of the very first interviews with CZ from Binance.
So that’s a little background about us.
But let’s just talk about NFTs right? That’s why we’re all here.
So to start, a lot of people may not know this, but crypto punks are very popular now, you know, very scarce and very valuable assets, but they actually started in 2017, and one of the things that really gives crypto punks a a lot of there value is actually the time that they have spent on the blockchain itself and of course the blockchain is based on time so this makes a lot of sense. They really were the kind of the first cyberpunk or cryptopunk, or pixelated NFTs.
That’s where a lot of the trends come from for these types of styles of NFTs. They’re considered the first blue chip NFT projects, and they really started the idea behind pseudo-anonymous identity being able to use your NFT as like your social identity, being able to represent as a digital asset as a form of digital flex if you will.
Shortly after a lot of you may know about crypto kitties, they helped to crash ethereum in 2017.
Ridiculous gas fees ensued after people started using crypto kitties a lot as part of the crypto kitties game, of course people also use them as collectibles, but they’re most famous and popular for actually literally kind of crashing ethereum. The gas fee spike transaction volume spiked so it was very difficult to use ethereum at that time.
When crypto kitties were very popular, another very popular you know company Axieinfinity.
I actually know Jeff host personally. We met in the Philippines in 2019.
As part of some of the people that I was able to meet, Axieinfinity was really the first to bring out play to earn.
I know all of that blockchain gaming is getting very popular and they were really the first to kind of use NFTs as like in-game characters and assets and also build an actual token economy around that for the game so obviously.
They were awesome. They built throughout 2018/2019 in the bear market and even 2020 when NFTs finally started to trend upwards. And then you all know BAYC , one of the most iconic web3 brands since NFTs have gotten popular.
Really I think the cultural aspect of BAYC is the main factor to their success, but they’ve also been very innovative in the way that they have approached how to use NFTs and how to make it more of a cultural type of brand.
And so these are just some metrics on NFT sales average price of an NFT active marked wallets that are using NFTs or have NFTs and so forth, but really the most important metric that you should know is that: In 2020, I believe the market cap for NFTs was just over 315 million or so, and now the market cap is sitting at just about 22 billions. That is a year-over-year growth of 2400 plus percent, which is absolutely insane, but it just speaks to the volume of what NFTs are doing right now.
That’s just unlike what I call phase one. Where NFTs are going, of course, is more a use case scenario, more practical use cases if you will, so NFT is booming.
Well, lots of celebrities, large brands for example, New York stock exchange just two days ago released news that they’re going to be launching their own NFT marketplace.
They skipped right over DeFi and went straight to NFTs.
“Taco bell” “Pizza hut” “Canada” “Charmin” “Pepsi” “Adidas” “Nike”, I mean the list goes on. All these brands are getting into NFTs and it could be because on one hand the regulatory framework around NFT is a little bit more friendly for brands.
And then also it’s a little bit more appealing for their brand audience in terms of like kind of being a part of the culture. It may be a little bit harder for them to appeal to the DeFi crowd because traditional finance is hard enough let alone like decentralized finance.
It’s a lot easier to relate to jpegs if you will rather than maybe.
I don’t know about lending and borrowing on DeFi, which I still don’t understand, and I’ve been in the industry for years.
But obviously we also have athletes and celebrities who are also picking up their own NFTs using those NFTs as their own pseudo-anonymous identity, even though we know who they are. It’s still a really cool way to just do like a little digital flex. I mean, there’s a reason why you buy rolexes. There’s a reason why you buy Louis Vuitton, and all these big brands and you want to wear them and you want to show them off to people in person well in an era where like covid. For example, you can’t go out and meet people. There needs to be some form of digital asset or internet native flex to be able to show people and whatnot, and then obviously it really helps if you can resell and gain some value in the process.
So the current use cases for NFTs right now are being explored. Obviously we just talked about digital identity and anonymous identity, where you don’t have to tell anybody who you are necessarily but you can just be represented by your NFT itself.
And of course you can represent your net worth in some ways through that NFT as well, which is also great when you’re trying to join certain clubs and get attention and what not.
A lot of different celebrities or athletes, or even just new businesses that are trying to get more attention, they’ll use this approach to be able to do just that to get more attention than another one.
Obviously gaming, play to earn, that’s a big one.
I mean there’s networks that are literally dedicating entire arms to blockchain gaming to get more in the way of play to earn games on their own networks.
And so this is in use case it’s been vastly explored initially by Axieinfinity of course they’re really the most successful to do.
This music there’s a few players that are exploring music NFTs in fact.
I think just today Snoop Dogg announced that he is going to be doing a music label dedicated to music NFTs. So that cooks metaverse.
And virtual land Decentraland is a good example of being to purchase virtual land in the metaverse. You can actually buy parcels of land and resell them if you want to, or you can hold onto those pieces of land, and you can host tour concerts or whatever in your own venues, and if you wanted to, you could have tenants in your own little virtual apartments. And you can kick them out if you want if they don’t pay rent virtually. Of course a lot of really cool things are going on the metaverse.
Social gating is another thing, basically being able to use NFTs to gain access to social communities like private discords, private telegrams, some of these things could be expanded upon. Maybe even if you’re familiar with Gather town it’s a pretty popular virtual office application where you could use an NFT virtual office.
Social gating is pretty popular, and then there is event gating. A lot of you are probably expecting to be able to use your NFTs to get into in-person events.
And something that we’ve actually built ourselves at NFTY labs being able to do just that: use your NFT as a ticket per sale and gain access to physical events.
And so what is next for NFTs: there’s a lot of things that are being explored actually. One of the Samsung universities is now exploring NFTs. I just saw this news today about using NFTs as diplomas when you graduate from the university. There was some other stuff being said about using NFTs as resumes, and then of course some of the things on the presentation here, like soul bound NFTs which we got termed from Chris Cantino on twitter. You should check him out. Soul bound NFTs are basically no-transferable NFTs. I like to think about these in a way of user access control. Let’s say you have a very big company, and you want to be able to maybe monitor all the employees in your company, and give them certain access rights, and you can actually do that by giving them no-transferable NFTs. Essentially non-transferable NFT would mean that you can’t transfer out of your wallet. That would be bad if you did have an employee that uses an NFT for access, and they transfer to their buddy or their hacker friend and bad things happen. So that’s one thing that’s being explored. User access control borrowing platforms being able to use an NFT essentially as collateral to borrow money. This is gonna become more popular as more institutions come in, because more money comes in to support the collateral for these NFTs. Obviously as these NFTs continue to get bigger and bigger, and become more scarce and more risk averse, the institutions will definitely supply the liquidity needed to be able to back those NFTs’ loyalty exchanges.
This is probably going to be very popular with a lot of the big brands. If you think about it, for example, all the airlines I fly all the time but I don’t actually like checking in with all my loyalty rewards points, because I have to make an account for each of these companies. I really don’t feel like attaching my accounts to all of my flights when I’m just kind of wheeling and dealing and whatnot. So you’ll probably see exchanges or marketplaces dedicated to loyalty rewards points from brands that are trying to just attach their existing loyalty rewards ecosystems that they have through their points, or maybe explore social tokens. I kind of doubt that they’ll explore social tokens though because of the legal framework around them.
So they may try to just take NFTs and just reward users for owning those NFTs through their existing loyalty rewards ecosystems. It just makes it a lot easier for them as well because these brands dedicated a lot of money just to being able to support those low to rewards points systems, so it makes the most sense for them to keep that fractionalization, Being able to use an NFT is exactly what it sounds like fractionalize NFT for fractional ownership. So let’s just say that you don’t want to spend 200,000 on a BAYC NFT but you want to own a part of it. Well, through fractionalization you’d be able to do that. You would essentially own a part of that NFT if the owner is willing to fractionalize the ownership of it.
There are applications out there right now that allow you to do that. I think it’s called fractional art if I have the domain correct. It allows you to put your NFT on the application, and then you can use social tokens to kind of get a piece of the ownership of that NFT.
Collateralization, we just kind of talked about that, on the borrowing platform side just being able to use NFTs against some form of collateral multiplayer and leaderboards. This is similar to bounties and quests. You can just imagine going through games, you can get achievements and no longer are they just like these xbox achievements that you get that you might tell your friends about, but nobody cares about. Maybe in the future you’ll be able to actually get NFTs as achievements, which will actually serve some form of value, and then beyond that you could probably use those NFTs for some form of access or promotions discounts and things like that. So it just makes more sense for the users playing the games. Then obviously you’d be able to take those NFTs and maybe port them over to the new games that are coming out instead of just having achievements that stay in your xbox and don’t go anywhere.
NFT indexes being able to gather up a couple different NFTs from different projects. For example, maybe you have a gutter cat NFT, a BAYC NFT, and a crypto punks, and if they’re in one index and you can essentially purchase ownership and all three of those NFTs in the index itself and capture upside as it as a trend upwards retail. This is gonna be much more popular especially as the big brands are coming in. Imagine buying a Louis Vuitton purse for example and having it tied to some form of wallet or just having what’s called a poe app where you can just sign in with your wallet and receive an NFT.
After you’ve actually purchased a Louis Vuitton purse, you get an email it says hey because you purchased this we’re gonna give you an NFT. That’s kind of like a digital representation of your physical asset and we do see these brand items apparel and things like that as assets especially if they’re a little bit more expensive. I think that’s most of these that I7ll touch on because there’s quite a few things we could go into but that is that for that.
This is what we’re working on currently at NFTYLabs. We’re building a product called SocialPass. We happened to talk to quite a few big brands around the industry both on the outside and coming into the industry for NFTs. So what we’re doing is we’re actually building a white label out of the box solution for those big brands to be able to just come into the industry and have a supportive continuous engagement. Therefore they’re not having cash grabs as people will call them, and they can actually have their users be able to use these NFTs for actual utility instead of just looking at the artwork. I think instead of looking at your artwork each day you might want to use your NFT for something more. Some of the things that we’ll be offering in our new product will be minting, so whenever you’re trying to mint a new NFT from a brand that’s launching you’d be able to go to a portal, have all the brands white label branding, of course their own domain, and have an effective minting dapp that they could use, or users could use gatekeeping which would of course be like ticket gating. So you’ll be able to use your NFT from that brand to get into any sort of physical events and things like that, and of course social gating being able to get into like community groups.
So that’s a quick rundown on social pass we’re coming out with that pretty soon. You guys are getting the first look. No one else has seen this before, so congrats. And if you guys want to follow us at NFTYLabs, you can scan the QR code and follow us on our journey as we explore the world of NFT utilities. If you guys have any questions I’d be happy to answer!
NFTY Labs is a foundation focusing on the growth of NFT ecosystems by building open-sourced, community-based tools that will unlock inherent utility and value within NFTs. NFTY Lab’s goal is to create new applications that offer new utilities for NFTs, and we aim to do this by utilizing a core feature of all NFTs: ownership.
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