NFTs Today and Tomorrow_Jeff Bissinger

everyone hey everyone my name is jeff bissinger i'm the product manager at satori and let's talk about the future of nfts uh where we are today and where we are going so the current landscape of nfts is creating a lot of noise across web3 and in order to fully understand the market we need to understand what adoption of new technology actually looks like and in order to do that let's take a look at what mass adoption requires uh we need a clear market need we need clear accessibility and affordability across use cases and before these three components are met there is this huge period of growth and experimentation that needs to happen in order for innovation to come through in a digestible medium for mass market appeal so the best way to articulate this path is to study technology adoption from the past and to do this let's take a look at a few s-curves these tell a compelling story they showcase a clear inflection point where technology was quickly accepted and embraced by a mass amount of people and there is a period at the beginning where these innovators and early adopters are trying to make sense of what this new technology is and then finally a clear commercial use case is there that scales and mass adoption quickly takes over so to make the comparison with nft technology we first need to see where we are with the broader understanding of where we are with web3 and crypto and the best comparison here is to take a look at the internet so this trend line is virtually identical to the internet adoption i'm sure many of us have actually seen this chart before the technology is quickly solving clear market needs web 3 is becoming more accessible and affordable through innovative solutions that many of you are building the last presenter was talking about a use case for many people in the trading industry but nfts are a layer deeper that lives inside of web3 and so this s-curve is just getting started for us and we have a lot of room to grow so these next few charts showcase some search trends around common themes and questions that paint a pretty clear picture that there's a large number of people that are interested in what nfts are but they find it very complex to really understand what's happening oh there we go so with these oh we lost it can i have your help sorry guys what do you think happened oh all right bingo sorry about that okay so regroup so with these themes in mind there's just clear interest in the technology and the association with value but the thing lacking here is just people that are active in the space and so the best way to look at this is just like what is the ecosystem what is our market today so there's about three million active wallets that contain an nft so that's about one and a half percent of the total addressable market of eth wallets and referring back to that s-curve of technology adoption we very much fall in those early stages so all of us in the room all of us here at this conference are very much considered innovators in the space we are the risk takers we're learning about the technology and taking the time to build resources that will solve clear market needs at scale the headwinds are clearly here for mass adoption and innovation with technology is happening daily here the best place to start accelerating our trajectory along this s-curve is actually through education and removing the complexity that is surrounding the space unfortunately there's a significant amount of this happening it is impressive to see just individuals that are spinning up podcasts on different resources and garnering pretty large audiences individual projects are leveraging the communities that they've built to actually onboard them into the space and there's a lot of investment happening from large organizations that are bringing very complex concepts and breaking them down into very digestible means and so even here at this conference there's been a ton of just nft intro courses or nfc 101 discussions to just break down these concepts and talk about what's possible so with the scene set of kind of like what the market looks like a little bit right now let's walk through some of the narratives that are playing out in this space and so the narratives that are playing out are a factor of curiosity and financial opportunity we have culture we have ownership and we have utility and these are the real driving forces that are playing in the market the innovators the early adopters we understand culture and community are the foundational layer for a successful nft project we associate art with culture in the importance of supporting creators projects are communities people are connecting with each other many times shared values and have a sense of belonging and these communities are incredibly active twitter spaces and discord channels are breeding grounds for collaboration and being involved in these communities is really a special thing to experience ownership we have grasped the value of scarcity and ownership of a digital asset ownership transparency brings clarity to the value an asset can have it also brings a level of authenticity to assets that previously has not existed we also understand the potential for future utility these assets can have in-game purchases are not new to gamers the utility cell was made here years ago but the shift comes with ownership of these assets the ability to have ip ownership and commercial rights to a digital asset unlocks the potential for economic activity that can be built on top and project builders understand that the more utility they bring to their owners or their community their incentives are directly aligned to what is possible for what that project can be on the other side of this narrative of early adopters and innovators is what the mass market is thinking about nfts people believe this technology is too complex and really not worth the time to explore and understand today they associate nfts as an expensive asset and really they're not wrong i think the last time i checked the average nft sale was about 500 that's just out of reach for most people and it's really not clear what the use case is for nfts across the board everything appears to be conceptual or high level and that's true everything is really conceptual right now and really the only way to mass market for mass market to adopt nfts as a technology is for all of us here to break down these narratives that we know and that we see and to build real world applications for them to solve everyday problems mass adoption is coming and web 2 and web 3 integrations will demonstrate utility accessibility and affordability of what this technology is capable of doing and i mentioned earlier i'm working on a project called satori and i feel like we are very well positioned to help solve this problem and bring a mass market into this space so nft technology delivers a horizontal solution into web3 and can act as this onboarding mechanism from web2 so the current narratives we have for nfts are really clouding all of our understanding of how we can bring nfts to mass market we need to take the narrative of financial value and just make it value how are people going to receive value from something that may have low to zero cost to them and so once we have this mindset of we think about nfts as this horizontal onboarding solution we're going to be tapping existing communities as opposed to creating net new communities with all of these projects and so nfts can actually have very similar use cases to web 2 functionality just the fundamental difference is utility of these assets and true ownership so as an nft a creator can truly own their ecosystem they can create scarcity with assets they distribute to that ecosystem um you can have a true one-to-one asset that denotes a personal asset of yours that you can say you truly own and any vertical in any industry vertical you can think of can absolutely have an nft integration and so we see a critical path to mass adoption as one through established ecosystems if you eliminate the cost of community acquisition which is one of the main challenges we see in web 3 the pathway in is quite clear let's talk about ecosystems so i think this slide is really cool and it tells a pretty compelling story if we take a look at the value chain of fan ecosystems this can be an influencer it can be an athlete any type of creator anybody that has a following of any kind this is what their ecosystem looks like they have fans that follow them they have fans that engage with them in some capacity and then they have fans that support them financially this could be through just like basic merchandise purchases and where we want to tap web3 in is actually go after those most engaged supporting fans and drop an nft on top of them to create that foundational layer of what really matters and so the path to mass market for these large creators is simply to just tap the followings and the communities that they've already created and so eventually over time as more and more supporters become nft holders because of the value that they see their creator their favorite athlete their influence or whoever is bringing value to them these creators are going to capture more of this value chain and bring them directly into web3 they're going to own these ecosystems right now they do not own them they know they don't own them and they want to do whatever they can to own them and so if we look at the universe of creators there are 50 million of them this market is massive and when you bring fans in you're bringing them now as part of this value chain they're willing to pay or maybe even just receive something that will benefit them over time and this flywheel of fandom will take place and being a participant or having simply the opportunity to participate in some type of financial upside just being rewarded to be a fan is going to have just significant implications for what that means in the future so for me personally i've been working with creators for years now and i've had so many conversations with them where they're talking about how do i become closer with my fans how do i reward my fans for being fans of mine because they've helped them become quite successful with what they do nfts solve that and this chart below really demonstrates a pretty great argument for nfts in the creator community because of this royalty structure that's built in and so this is just the last 12 months from openc and so over the past 12 months of course there's a lot of activity that's happening and these are just royalties that are being paid out to the creators of projects but if we actually zoom out and look at like what the potential here can be and you work the fans into the value chain of this royalty structure the possibility here is pretty incredible the flip side to the creator ecosystem is enterprise if we take a look at membership and loyalty programs um if we go back to that analogy i made where we create a foundational layer of nfts for a creator if we go to brands and we have foundational layer of nft holders people are going to want to pay to be members in these programs they're going to receive added value added benefits maybe it's access to exclusive merchandise maybe it's discounts whatever it is brands are going to own their customers fully and be able to have collaborations with other creators who also have nft program also have nft ecosystems so the potential here is quite large this is the path to mass adoption we're going to be tapping existing ecosystems of communities create that foundational layer of nfts and they don't need to have that narrative of being a highly valuable financial asset communities will bring value to whatever it is this nft is you can absolutely create a highly valuable asset create scarcity whatever it is but that's just not the path to mass adoption people need something that is broken down to a very [Music] bare bones example of what is possible with this technology and once we get people using nfts for everyday use cases then the potential is pretty significant can't have this conversation without addressing gaming in this path to mass adoption um this is here this is a 200 billion dollar plus opportunity the builders are here i'm sure many of you in the room are building for gaming new gaming projects are being spun up every single day and the potential here is for the entire nft community to just identify product market fit figure out what this community of people that are already familiar with what this technology kind of is minus that ownership component and see where it can go and we can all learn from what's being built something that i'm really excited about or at least interested in is the potential with real estate in nfts everybody in this room touches real estate in some capacity you either own your property or you're renting your property and the opportunity for disruption is there however there's a lot of misaligned incentives for nfts to come into this market because of that value chain and so this is something that my team is looking at would love to meet with anybody in here who's thinking about it as well but the opportunity with real estate is absolutely a path to mass adoption of nfts because it's something that everybody in the world touches in some capacity so there are some major risks to mass adoption and i just lost my slides and this is one of my favorite slides actually left all right all right there we go power of community everybody great um so let me get my mouse back here okay so there's some significant risks to mass adoption of nfts and some of these are just examples i came across on my twitter feed and they tell a very sad story of what some of the most important people in nfts are experiencing right now and that's creators and artists people are taking art and minting it as their own and then artists are finding that later and so if the whole ethos of nfts and web 3 is to show clear ownership and artists aren't even able to own their art how do we verify that and this is something that is a pretty existential threat to the adoption of nfts anonymity in the space allows for projects to just be left behind cash grabs are happening daily it's really sad what's happening right now in the nft space a lot of influencers who haven't been identified are spinning up projects every couple weeks and going after some of the newcomers to the space marketing on social media is making promises of huge returns so this is a brand new project and they're comparing it to a very successful one and like could this be worth 10 eth we'll find out and so this is quite concerning for people that are just new to the space and just simply the association with nfts and scans uh this is something that's growing uh we have to get out in front of this narrative and the way to get out in front of this narrative is to simply talk about applications and use cases for what nfts have the potential to do here are a few fun examples of where we see mass adoption taking place we see big brands like nike and adidas partnering with pretty large projects trying to get into web 3. we see bud light launched something around the super bowl with their own project we saw pepsi launch something as well and then we also see some street art i think street art is a really um great example of where mass adoption is going to happen because you're taking a digital asset and you're placing it in a real life setting where people are going to be walking across the street and see oh i recognize that from the internet what is that and so you're spurring interest in getting people to at least start exploring what is happening so quickly estitory our focus is on that last mild delivery of nfts we see the path to mass adoption is through tapping web 2 ecosystems and bringing them into web3 there's existing communities already so there's really no reason to try to create something net new and our path to market is absolutely through looking for existing communities again my name is jeff i'm the product manager at satori what's on the screen now is a demo for our product so it's an nft for my business card and so it is a great application for how our technology can be used to onboard a mass amount of people into an ecosystem or a protocol that they don't have any exposure to or they may not have exposure to so anyway thank you guys so much for the engagement i see a lot of photos were taken i'll be around probably in this room for the next couple minutes if you have any questions at all but yeah thanks again awesome thank you jeff