How Web3 Can Fix the Flaws of Our Broken Digital Economy - TOKEN2049 Singapore 2022

everybody can you hear me fine I'm Mark it's Morgan from a fuse and I'll talk a bit about web tree and how we see this fits into what we're doing but also how we see this changing traditional Finance so to speak um but first let me give you a little bit of background about me so the company started three years ago fuse the fuse Network before fuse I was founding a company that was doing colored coins back in 2013 so about a decade in the crypto space um and before that 20 years ago did like e-commerce uh a platform in Israel we're based in Israel by the way so the company is basically um like the the DNA of the company is smbs it's really the the long tail of businesses the long tail of of merchants and and this is what we've been doing for the last 20 something years but in the last 10 years full-time crypto and fuses like the like the next iteration of uh of uh what we're doing um so first of all uh why we started fuse because we really think that there's a a high entry barrier for any company that wants to compete in the in the digital space on um user experience integration of of money creating good experience with money especially on mobile it's not something that is accessible to regular businesses this is really a game that only the big companies can compete like Uber or Banks or Google so really um one of the things that we realized in the last few years but most importantly in the last let's say six months to a year is really that sharing economy business models don't work so those big companies you know they come into a market they have a lot of funding and they basically pay money for users to use their products so this is how Uber is getting you know users um and this is also a very high entry barrier for other companies to compete let's say I want to compete with tuber I really need like a few billions of dollars in the past it was also another entry barrier which was like actually developing the the app developing the user experience that was a high entry barrier so today what we want to do is we want to give access to this capability to every company um because those models don't work Uber business model is not something that the investors enjoy right recently with the downturn in the market but it's definitely not something the merchants enjoy because they're taking something like 30 fee and I'm not talking only about Uber I'm talking about pretty much every company in the sharing economy as the same exact business model 30 fee whether it's we you know we work Uber GrubHub uh some some something around 20 to 30 percent if you're looking at the App Store Apple a store or the Google place star 30 fee so really the the sharing economy is not really sharing any wealth with anybody there's like really one um a rent Taker and if we look at the deeper into those business models we see that the merchants are not making money and the delivery people also don't make money so you know you don't really want to work for a boat for a living so there's a lot of broken models in the space um I also already talked about my background so um what we see is that also Legacy Financial infrastructure is not uh something that we can um really see people accessing and there's a lot of people that don't need the bank today so in the past people were talking about the underbanked or unbanked uh today there's actually more and more especially in the west more people that actually use non-banks to conduct financially uh this is something that's still happening and still growing so this is all push for you know giving banking solutions for underbanked on our unbanked it's not really working you know there's more and more people that choose to work with non-banks with the Neo Banks so to speak um also 50 of POS transactions at least in Europe are still made in cash so we see a big grip um in the traditional um a more traditional markets a big rip in cash especially um although there was Corona and it was like a little bit of a change but still a lot of people are comfortable using cash and actually the biggest companies the biggest users of cash is also countries that have Visa every country that doesn't have Visa already you know bypassed cash entirely like they're already doing only mobile phone transactions uh so we're kind of in a transition period where banking is changing rapidly suddenly cash is disappearing it's happening worldwide it's happening at the same time it's pushed by a really strong consumer demand there was consumer demand for services like uber until we now find out it's not really sustainable business models and there's also a push through to move off Banks move to like new models and this is where web3 comes in so web web trees in my opinion really a tool for finding new business models and I will elaborate about this because people talk about web3 and it kind of means a lot of things for different people depending on who you speak to you'll hear a different definition so my definition is is a little bit broad but it's really after the several decades of iteration of web technology we can really add ownership to the mix which was uh something that was really hard to do in the past so in the past you know Facebook owned everything Google owned anything apollon then everything so really the internet of today the way we know it was built by um internet companies by corporations and this is really what characterized the last let's say uh two three decades and if you remember the first version of the internet was an ATT it was completely closed completely centralized completely owned by atnt uh every piece of it so there's definitely a lot of uh Evolution since then and web3 what it has is really a way for us to give ownership to a user give ownership to a company not necessarily or divide certain aspects like for instance the issue can be different than the custodian in the past it was impossible so there was really a solution to provide a a trust between entities that are not necessarily trust each other so that's really how web3 is evolving the internet and if you add the ownership to the mix it's actually adding a lot of interesting properties um so the fact that it's all open source the fact that you can use this infrastructure without necessarily pay you know royalties or buy licensing it's a bit like HTTP or tcpap it's basically another layer of the internet that enables companies to find new business models really outside of the big platforms okay so if we look at a little bit of traditional you know models of web 2 and web 2 definitely brought a lot of new business models you know SAS and cloud and we have a lot of interesting stuff like sharing economy was something that web 2 kind of enabled I don't see how you could create a something like uber before they were like all this infrastructure and mobile phones and GPS's and everything was kind of talking together uh so that enabled web to enable the business models that we see now like uber uh it enables a software as a service which is currently dominating the B2B sphere like it's practically the way software uh the way to make money with software right now is is basically mostly SAS um doing subscriptions those are very clear uh web 2 business models so web3 what it enables is new business models that are kind of like outside the platforms uh so Ico is not necessarily a business model but it's definitely enabling a funding it's also changing the capital formation for funding those projects like if you think about web 2 it was mostly created by Capital formation from the Bay Area the Silicon Valley those are the people that funded it there's almost no European web to companies or even Asian like big ones outside of maybe China I don't know but most of the web 2 infrastructure was really created and funded by a very small amount of people so definitely icos at least at the beginning were can kind of like a wild west but they didn't didn't this disappear you know they still get funded they just call it differently IO Ideo there's still a very very powerful way to basically Access Capital from any person in the world that's pretty that's pretty game changing and then starting to do stuff when you remove visa from the equation like Revenue sharing like giving people percentages it's impossible to have any other partner other other than Apple when you need to share 30 of your Revenue with apple you don't really have room for any other partners right so web3 allows us to really see business models that you could just couldn't exist when it was all dominated by like really 10 companies and this is like really the the interesting part we think that uh you know there's a convergence of Trends this is exactly the perfect storm that gave birth to the Bitcoin technology uh it was the right timing it was the right uh like uh emotions there was a lot of uh trends that converged it's not only the Bitcoin part it's also the open source part it's also the financial crisis of 2009 2008 um we're talking about the perfect storm all over again so after how much 14 15 years of of um uh bull market we now see finally that Google and Facebook and Amazon and all those companies can't grow forever the market kind of like reached they reached the peak of their potential they can't just buy every company in existence they can build all the infrastructure and monetize it by themselves uh so that's one one Trend that is definitely clear another Trend that is definitely clear um is really the fact that it's no longer that difficult to compete with Uber and Uber understands that it's really starting to get like lower and lower entry barrier where more and more Partners more and more local firms more and more startups are able to compete are able to offer something competitive especially when it's local it's usually more competitive it's usually cheaper not in every use case but definitely harder to manage all the cab drivers in the world uh through one company it's much easier to make it decentralized there is value to decentralization and and I think people start to realize this now so web3 is really the convergence of all those Trends the open source the recession the the crypto Revolution so to speak and really those ideas that uh you know we could have um an alternative to the App Store we could have an alternative to Airbnb it's no longer uh mandatory for us to conduct ourselves in platforms we can actually move our ownership our identity our data between platforms not necessarily asking Facebook for permission to share private data or not even giving a Facebook any private data so that's really the uh um The Perfect Storm for crypto where even Facebook understands that you know there's a a problem here uh so um really the the main thing is is enabling competition is uh creating technology against a monopoly and the fact that it's happening in a rapid the people don't understand it but it's like exponentially faster uh if you look 10 years ago how the crypto started the crypto stay started it was very slow uh in a perspective of 10 years we're moving at light speed uh so those conferences we can expect to grow and we can expect those companies to proliferate and it's actually kind of like exciting right now so fuses a payment blockchain uh we're really seeing that the blockchains of the future are not going to be consumer facing and we believe that you know the addressable market for let's say crypto users is about 30 million users when we have billion users in the space nothing's gonna look the same so right now we're seeing out of those 30 million users that crypto has a very small amount know what they're doing and the rest are following them it's mostly technical people or investors but in the future people will not interact with blockchains directly but through companies through businesses so we want to build the most business and consumer friendly blockchain and we want to replace Visa because we don't think that every business needs Visa as a partner or Uber as a partner or apple is a partner and if somebody wants to build their own you know competitor tuber they can do it we have a project for instance that is doing food delivery in Liverpool we have a project doing events in Bangkok uh Finance can be worldwide it doesn't have to be local you don't have to be an American company to sell to Americans anymore so the world is changing and I don't think that Visa can keep up so fuse is really a blockchain to replace visa and the really the um the the way that the payments will work uh going to be radically different so a few tries to achieve it through vertical integration uh to create a good user experience and hide all the complexity behind the scenes for the user makes it makes the technology transparent it makes payment really something that is more like feels like web too but it's still decentralized it's still uncustodial it's still run an open source deck because open source stack can also be a comfortable it doesn't have to be a a lot of friction using crypto so that's really what the fuse blockchain tries to validate and you can visit our booth um and hear more details and we can tell you all about how to build on fuse thank