The NFT's Utility: Yesterday, Today, & Tomorrow | Jamie Steinberg - Reservoir, SheFi, Boys Club

hello hello before we begin uh I have the slide for you you can scan it with your phone the QR code or you can enter in the shortened Link at the bottom and that's going to give you access to the presentation it'll go to a Google folder and then you should have the ability to follow along Etc just wanted to give that as a nice reference point let's begin so today I'm talking about the nfts utility we're talking about yesterday today and tomorrow so going to give a high level overview kind of talk about what's going on today and then segueing in for possibilities with the nft in the future and my name is Jamie Steinberg I'm devell at reservoir reservoir is nft infrastructure uh so apis sdks that sort of thing I'm also an active shifi participant ipant I'm a city lead for the city of Chicago and then I am also an active boys club member if you'd like but no pressure you're welcome to follow me on some socials I'm most active on warcast and my handle is Chicago and secondary if you'd like to reach out to me on Twitter my account is Jamie Chicago 312 all right so let's get into it you might have some questions as the presentation goes on and I want to make sure I answer those question questions so we have a QR code that you can scan another QR code or you can access the short and link up top and that will send you to a form and that form will submit a question to me and I will make sure to answer you either later today in this presentation or async through email within the next one to two weeks appreciate your patience now going over what we're talking about today is three sections we're going to have that brief history current landscape and the future utility all nft related so let's start with a brief history some of you might be very familiar some of you might not be as familiar so this is kind of just to bring us all up to speed the first nft that was ever minted was in 2014 and it was on namecoin blockchain and I realized that I did not Define what an nft was so let me rewind that back an nft is a nonf fungible token in this case it is a token that does not have another one that is the same so that is what an nft is in case there's anybody that doesn't know because I know some people are watching online all right so after the first nft was minted in 2014 not a ton of things going on to be honest and then 2015 as we all know love ethereum launched in July Kudos fast forwarding to 2017 crypto punks so this is not the ERC 721 that we all know it was actually a modified erc20 contract and the way that I think about it is like the first real nft collection that people started minting buying selling all that stuff that was introduced in June and then following that there was something called crypto cats and then crypto ities so crypto kitties if you were around if you were trading if you were minting you probably were like oh my God gas fees are really high now thanks to crypto kitties now crypto kitties thanks to the high gas cost also created other blockchains so flow if you know flow that was to offset the high gas fees and as we move on to 2018 we started to see a massive growth in the nft industry just in general just tons of different projects not all related to like pfps but gaming art all sorts of Ventures and that is also when the ERC 1155 was introduced so the ERC 721 which is like a crypto Kitty that's when it was introduced around then is a non-fungible token so each one is unique and cannot be replicated the ERC 1155 is a semi fungible so you can have multiple of the one token now moving on to 2020 as we flashback Andor prefer not to go there uh we were all in lockdown and nfts kind of exploded everyone was online all the time everyone was connected be sold for $69 million at Chrissy's auction house and this is when the bubble started to form leading into the huge nft boom that we saw record sales record minting just tons of volume going through so that's the brief history the key takeaways to keep in mind are the technology scale to accommodate the nft that does not mean that the technology was for the nft to get better but technology as a whole scaled in terms of the web 3 space and that has really helped the nft to be better and easier used across all spaces nfts are also more than profile pictures so that's pfp if you didn't not know and now we see them in all sorts of different things besides profile pictures we see them in other things that we will get into in a moment but some of them are like figal things some of them are memberships different things like that and then nfts have a value Beyond monetary this is more of an anecdotal than a factual but for me personally my nfts I don't just mint any nft and they have a lot of value to me um I like keeping them and I like having them and it's a momento that I don't have to worry about cluttering the closet we're going to move on to the next section and the next section is nfts current landscape so let's talk about what's going on with nfts right now there's a few things that are happening that I'm going to go over there are many more things that are going to go over I hope this inspires you to search about other utilities that I did not cover or go deeper in the ones that I am so we're going to go over real world assets also known as rwas probably heard that a bunch token gating infrastructure and also gaming so real world assets is probably a better term than fital which is physical digital uh real world Assets in this case that we're going to go over is f our collectible cards watches and also real EST estate there are other uses for real world assets but they're able to be traded just like any other nft and we're going to highlight a few companies that I think are doing really meaningful work in the space so the first one is Courtyard Courtyard is awesome because they are allowing you to take your Pokemon cards and trading them digitally versus meeting up at the bookstore as we did as children so what happens is you send off your cards they get verified it doesn't have to be Pokemon cards it can be baseball cards other collectible cards they verify them and they put them in a vault so now they are safe from fire smoke and water damage and then they mint an nft from the nft you can trade it you can list it you can give it to a friend whoever owns the nft owns the physical item and can withdraw it if they want I think it's a great way to alleviate some of the friction points that something like like eBay in terms of selling your cards the next one that I'm going to go over is watches SO watches are providing end to-end tracking and trading ecosystem for luxury watches so it's very similar you can see there's a trend it's very similar to how Courtyard is minting nfts for cards watches is minting nfts for watches which are appraised and then locked away and kept safe so you can trade and swap them whoever the nft owns the watch Masterworks moving on to the next is related to Fine Art this is more of fractional art owning so it's separating the piece of art into multiple shares and you can own one of those shares the idea is democratizing investing in Fine Art and then also Fabrica so what Fabrica is doing is similar to what roofstock is doing which is related to making nfts to represent land or real estate and then from there you can actively trade them it allows you to do it a lot faster than going through traditional routes to purchase real estate the next one that I'm going to talk over is token gating all of you have actually participated in token gating to attend eth Denver and that is with the nft and your token proof which I will go over it a little bit but what token gating comes down to is it allows only people with the token to attend an event or possibly to access a document or a membership different things of that nature Airline you know mileage memberships things like that and in the case of events basically people who have the nft can go they're approved they're prev vetted and you know that they can attend people who don't don't attend people who don't have the nft they might be weight listed they got to wait at the door different things like that and I'll go over some companies that are doing some cool things related to this the other thing that I mentioned is documentation so I know that when you're in a Google doc you want to share it to people you have to put in their email or maybe it's like domain or different things like that it would be a lot easier if you could say anybody who holds this sft can access this document and I think it really streamlines especially because the cost of nfts and gas and different things like that have come down so these are some companies that are doing some awesome work in relation to token gating one of them is charm verse so if you're familiar with notion charm verse is like notion but with nfts so you can have the documents only accessible by people who hold that nft another one is events so I've been using this you might have seen this around um especially if you're on warcast but it allows people with nfts to RSVP for an event and be Auto approved or only people with the nft can event attend the event you can't even be weight listed without it and it's kind of like Facebook events but on chain and you can even do more detailed requirements like you need a theum in your wallet things like that the final one is the one that we've all participated in as attendees of eth Denver that's token proof they also work with other events so shifi also has token proof but you've kind of already gone through the process if you're here um but it's the same concept it's token gating of event now I want to talk a little bit about infrastructure so one of the things that I wanted to talk about besides the nft utility is kind of the inner workings behind that and what allows us to be able to use nfts in more unique ways than we have in the past and so originally it's a pretty clunky experience you have to be able to spin up a wallet you have to keep that pass phrase secret you have to get funds there you might need to give them your social security number all sorts of things and then bridging it's difficult because you got to sign it you got to lock it up you got to wait at the end and then minting is probably actually the easiest part because you've already done all the steps in order to get the funds to Min something but things are changing now one of the great things is we now have account abstraction so you can sign up and get a wallet with an email or a phone number and there's less security involved of you having to remember these these words or these phrases in order to keep it safe the other thing is like on- ramping funds is easier than it's ever been and you're able to do it with a credit card they don't need you know your first child or any other information like they used to and then finally bridging bridging's also become a lot easier it's become more intent based so users can say that they want something and then just sign once and then get it at the end and it can be instantly it can be within seconds versus possibly waiting up to seven days for depending on the bridge and then finally minting if the minting is utilizing something bridging behind the scenes then that allows users to skip bridging entirely so there are some companies that are doing some cool stuff with this and making it easier for users to purchase nfts and get them in their wallet ASAP one company is privy privy is allows users to use their email I think it's the easiest way to onboard people into web 3 people are always talking about how difficult it is and they have unlocked it they've made it easy they're also partnering to mention Courtyard they're also partnering with Courtyard so if you use Courtyard you've probably already used privy another thing in terms of on- ramping funds would be Crossman Crossman is a credit card payment in order to get the nft it's also easy you just put in your credit card and AD mints um relay allows users to bridge funds instantly 1 to 10 seconds from east to L2 L2 to L2 and it's also cheap up to 70% G gas savings which I think is great especially when you're buying an nft that's not super expensive why would you pay gas three times the cost of the nft and then finally Zora Zora is actually using relay on the back side in order to allow users to bring any funds that they have and mint seamlessly to another nft that's on another chain if anything they've abstracted the chains so that you don't even have to worry about where are my funds what chain is the nft on it's just seamless and it's all about I want this nft and I want it now boom it's done so moving on to the next section is gaming and with gaming we have proof of play and one of the reasons why I've brought them up today is with their pirate Nation game which is an RPG Style game is because they are using an L3 so we have layer one ethereum expensive gas we have l2s that roll up onto ethereum and l2s are cheaper we have l2s so that it is easier to do onchain transactions but there's still a cost and if you're do if you're playing video games you know that there's a lot of different possibilities of transactions to occur if it was on a blockchain and all those transactions would cost money but if we built an L3 now we've reduced the cost even further and I think that's what's really exciting because it's going to allow people to be able to do an onchain game without breaking the bank it's going to be very seamless and I think that's important if we want to get blockchain into gaming which I I think we do the next part is Zed run so this is a kind of a different style gaming there's also gaming video games but there's also gaming Bing and this relates relates to horse racing and I tried it out it's pretty cool so you're able to see horses race across you're able to get different attributes for your horses to power them up different things like that and it's entirely on chain and it's also browser based so I think it's a really unique way of using nfts cuz each horse is an nft and then they have ATT tributes on top of them race faster Etc and then finally the last company that I'm mentioning is Horizon so the other two that I mentioned are game specific Horizon does have a game they have skyw Weaver which is a trading card game but I think what's really cool about Horizon is they also have a platform for developers to get their game into web 3 which I think is important because it needs to be plug-and-play functionality and if we want wide adoption and that is where we stand today in the nft world as I said I didn't go over everything that's going on but I went over a lot of things finally the future of nfts so this is what I'm seeing and this is what I think is really important in the space we have automated distribution so that means users can list their nfts and then boom they're across the ecosystem they don't have to worry about trying to find the buyer the buyer will just be able to access it no matter what platform they're on the next one is Creator royalties I know that there's been a lot of controversy it's very polarizing are we paying them are we not paying them I think that creators are fighting back and I think that we will see a way in order to enforce it um which I'll get to a little bit more in a second and then finally intent base so intent base is related to the user not necessarily doing every single transaction needed but the user is saying I want this done and a solver behind the scenes is doing all of those transactions so automatic distribution so at Reservoir we have a order book where other companies build on top and when you submit the order it automatically gets distributed so you have instant liquidity and instant buyers for example openc pro magic Eden all the orders are going there going to Creator royalties magic Eden just launched their ethereum market and they have a Creator alliance with hundreds of different creators and what they're doing is they're using something called payment processor to block orders that don't have royalties and this is the way that creators are going to be able to get their royalties by blocking sales on other platforms that are not ottering the royalties and then the last thing is intent-based so I have warp cast up here if you're not familiar there's something called warps it's very much like miles you know that you get at an airline and you can redeem those for a flight but in this case you can redeem them for an nft you can mint them and it's really cool because you don't have to think about transferring funds or what chain or different things it's all abstracting it and warcast is doing all the solving behind the scenes in order to get it to your wallet so that's what I think things are moving towards I want to thank you for coming for today I do have the QR code that you can scan as well as the link and this is going to the question questions the question page also has a link to the presentation if you would like to review it so thank you so much for your time and thank you for attending my talk about the nfts utility of yesterday today and tomorrow my name is Jamie I'm devell at Reservoir and if you'd like you can come over here if you have any questions that you would like to ask in person thank you again