Web3 Product Principles_Daniel Ice

um thank you everyone uh it's great to be here my name is daniel ice i go by dice um and i work for a company called nax which stands for new asset exchange and i'm head of innovation for them uh we we help large corporates um you know get on blockchain technology among among a number another number of things and um what what we're looking at today is i thought a lot i've been in tech for 20 years and i thought about a lot when we moved from you know desktop to mobile and we had responsive web design was a thing and i've been thinking about as we've been moving from web 2.0 to web 3 kind of what are those same principles like what does it mean to have a web3 application and so i wanted to look into web3 product principles around how you log in and create accounts how you handle your payments and then a more broad example on api system integrations and like a complex manufacturing environment so we all know this this is the standard way that you log into a web app you give them your email you create a password if you're like most people you probably reuse the password from site to site and it's just a matter of time before those passwords leak out your account gets compromised we all know the drill it happens again and again and again and as long as you share content whether it's a password a credit card number anything like that information will be leaked on the internet the only truly secure model is one where the the password or the private key never leaves the device so the second the second big problem with web2 logins is there's always a risk of being de-platformed and we know that people who've built applications and then they're decided for whatever reason good bad or ugly they're no longer allowed to be on gmail they're no longer allowed to be on amazon you know we all we all see these things and also it requires a lot of personal information to create the account maybe you're not giving it to the site you're going to but to create that underlying identity they're going to extract some data from you and um you know over time it started off as your email was this unique identity it does handle a lot of different things it also handles communication and so the the web 3 alternative is to log in with your wallet we kind of lose that with web3 but it also handles password resets and it ultimately has become a way for the platforms to coordinate and track users across the web so those are those are some of the downsides of a email password login and you know i also picked this screenshot because it's got the facebook the google the linkedin all the social logins have the same pitfalls what i really enjoy in the web3 experience is a login with wallet now it's still a little new to people because not everybody has a wallet keeping your wallet password safe and secure is its own thing so we're gonna have to have some some literacy coming up in the same way that you know when when the web first started i remember telling people you need to get an email account to sign up for this and they're like what's an email account so we're still kind of at that early phase of just educating people but the really cool thing is you have strong security with cryptographic signature verification so you don't need passwords you can do a different wallet per account so if you want to isolate how you interface with this product you can or you can log in with the same wallet on multiple accounts and this will allow platforms over time to personalize uh based on what you hold in your wallet based on your transactions and in essence you're bringing your own personalization engine with you to the wallets and and technology will emerge so you can do product recommendations talk to people get access to specific rooms um you know varying things so here it's no longer like linking your bank account linking all the the 19 things you have to that's all this account linking all the time because you're using web3 and web3 knows about the assets you own you get to integrate all this into one experience it's also far more secure because uh if they hack the the server they can't they can't log into your bank account so if you're doing like a budget software and you wanted to use link your wallet as opposed to linking your bank account there's no risk that somebody will come in steal your funds you'll you won't have to deal with all that it does create some challenges though if your wallet's lost there's no way to reset the password it just kind of is what it is and there's no way for web3 communication um layer between the wallet so these are these are problems where we're still solving um the second is just looking at payments i've built a lot of payment technology over the years done a number of e-commerce companies and a lot of people think that you know credit card payments are easy and stuff but from a merchant's perspective they're they're really slow they take two to three days to get your money whereas on a web 3 payment you know you get the money in a couple of blocks whatever the time of that block is they're expensive and we'll compare all the costs here in a minute and then there's also the chargeback risk where i helped start a luxury cosmetics company called violet gray we sold a lot of really high-end products that people love to use stolen credit cards to try to buy with and it was a forever cat and mouse game you know just stopping people from doing that um if you're paying with with a crypto wallet either they've stolen the whole wallet or they don't have any of the wallet um but the the merchant gets to keep the funds no either way and um those chargebacks really add up because you not only have to pay the cost of the product that you lost you also have to pay generally like a 25 fee and so most merchants are making about 17 uh margin on their business and so they're paying about six percent for their payments they're paying about a quarter of their of their uh money between um the transaction fees and the chargebacks it's also really easy to steal credit card data for the same reason it's really easy to steal the passwords and um then then our second big uh way that we accept payments now is app stores and this is the ultimate gatekeeper verification publishers require the account um we've been stuck trying to get one of our apps live for over a month because apple won't approve our account we've all been there um their payments are very slow 30 to 45 days they're very expensive um 15 to 30 percent mostly 30 percent and you're not allowed to have a direct relationship with the customer uh platforms really limit the kinds of payments and business models that are allowed on there and that's why you've kind of seen a stifling of a lot of the businesses not really getting that advance because they end up in just games where you're buying little upgrades and that's about the only business model that seems to work a lot of the productivity apps really struggle when we look at payments for web3 they're both fast and slow from a consumer per se perspective feeling that 17 seconds or generally one minute for an ethereum transaction feels like an eternity but you know once that transaction's done it's fast because the funds have actually settled you don't have to wait for that that settlement layer um we don't we all know you should wait a little longer on the bitcoin 30 minutes to an hour um they're final so you don't risk chargebacks the transaction fees can be high and you know even though it's it's great and it's new and everything we'll look at that in the next table but the buyer pays versus the seller so that's an interesting dynamic you don't need a merchant account you don't need a stripe account you may have a political point of view that people want to de-platform i think we're seeing a lot of that in the news these days you just simply create a wallet and you can start accepting payments there's no technical limitations on the business model you can create any kind of pricing structure that you want um and i think we're going to see a lot of innovation coming out of this so just kind of comparing payments in the web 2 direct model which is you know a stripe account a shopify account you're paying about six percent uh given a a three percent chance of a chargeback it comes out to six percent on a 50 transaction obviously if you have a 50 transaction on an app store you're going to pay about 15 or 30 bucks ethereum right now i took the latest stats it's a little low this month it's six dollars and 61 cents which is quite high on those things but that is a fixed rate um so you could have a ten thousand dollar payment you'd still pay the same six dollars and sixty one cents uh bitcoins at 230 and then i see the level 2 here at 19 cents and i think that's really what's going to emerge will be a very fast level 2 payment layer probably that handles all the transactions for just pennies and their final and they're settled so very exciting front there and then finally are the complex systems so um i've been looking at one of the world's largest supply chains and they've been trying to swap out a lot of their systems and they keep running into these problems that there's so many systems and they all hold partial bits of the records and what we're bringing to them is a new approach where we take erc20 style definitions and this is one of the greatest things about web3 is there's over a quarter million erc20 tokens on there that your metamask can interact with just because it does these simple api things the name the symbol the transfer from etc and so we're building them a custom block chain where we write our own erc20 definitions of what an order is what a shipment is etc and so in the web 2 world they have this giant legacy erp system and it synchronizes with subsystem 1 and that synchronizes with subsystem 2 which adds a little more data to the order and this the legacy erp is so old that they can't actually update it to put all of the data in there so they never have a full view of any order they only have synthetic orders that live in spreadsheets and um and that may not seem like a big deal but when you're dealing with a hundred thousand orders and stuff like that it can become quite cumbersome and uh so this is our our redesigned system is we put a private poa blockchain for all them and their 200 manufacturers on so it's private but it's it's it's used and decentralized and they have a shared definition of an order so that every system that knows parts of the order can write to it directly and all the systems stay in sync because they get to read from that and what's really cool about web3 when you think about integrations is they're actually reversed um in the past you would have to reach out and integrate into other systems and this one everybody comes to the blockchain so it's kind of like reverse gravity um it it gets me really excited i built so many ecommerce systems to have one system where everything stays in sync all the time and um and then you can you can start to link this stuff up to all the d5 legos out there so you can do a bridge and then do supply chain financing for some of the manufacturers and once data has a finality to it and once everybody has that shared upon thing just like the last talk with the shared sticks between the communities we're able to build systems in this format they're much less locked in and then when we kind of compare the two systems let's look at what happens when one of the system connections goes down if it goes down from that legacy erp system which does happen then all of the subsystems are there you can also just see from a basic network analysis that the latency between p1 and s3 is you know one two three hops and whereas if the erp system goes down over here all the other systems are unaffected they're still able to read from the blockchain blockchains have had billions of dollars transacted on them they scale very well they've got resiliency and and this is this is a way to use them beyond just kind of a common shared ledger so um it works much more like the internet you know we all we all heard um uh i figured which eastern european country got the internet shut down and we lost 15 of the bitcoin mining like a month ago and but yeah thank you and it just kept running and that's the nature of true decentralized systems so these are just some of my musings thank you for your time appreciate it [Applause] sorry so we have about eight minutes for a q a um