One Infrastructure, Limitless potential with Clemens Wan

[Applause] thank you everyone uh and I really love the morning sessions here they're really about web 2 and the adoption of web3 by learning from all of these different web tube patterns my name is Clemens Juan solution architect at consensus working on inferior just to give context I think we see a lot of opportunity in web 3 because of the comparison and upgrades of business models so the business model of a web 2 type of system is to own the full stack and this is a diagram from a16z crypto and I really like how it emphasizes that the intellectual property on the left side is owned by the centralized company on the right side you see that there is a more fluent stack that is through a secured and trusted layer provided by blockchains provided by different ethereum or other types of infrastructure layers and that intellectual property is owned by the user so there is a wallet ownership Associated to it the VCS that invest into web 2 companies and how they look at valuation is usually about the growth of your users they want the content to continue to be uploaded and people to continue to be sticky and you know log into Facebook all the time on the other hand I think web3 companies have a rendering of assets rather than a pure stickiness of coming back to the systems and so what we learned from it is is really thinking about where is web2 today and how did it evolve I just wanted to show you this is you know my my personal home page and I think as it started it started off with profile making connections in a social graph with friends so it's the early days of Myspace it then moved into adding content tagging that content with different fans commenting with them and then moving forward towards news feed so allowing for basic RSS access to all things related to your content that you're creating making different emojis Associated to it then it was messaging notifications right when I'm returning to the site it's because I'm being notified of something that's happened within my community eventually as a big company Facebook saw that there were smaller types of companies that were more innovative on the types of material that they were creating so Snapchat having stories and then Facebook taking about a year but then adding that on too as well as looking at twitch and adding on video looking at Marketplace and adding that into there all of this is that the optimization that they were looking for is created for social interaction so that you return back to the website and they collect data off of that so that they can sell ads personally I still use Facebook just for birthdays so I can wish people a happy birthday the other side of things is around the app store right so this is a sales force app exchange and more and more we see in the multi-chain world that you can have a lot of these dapps be published to different types of networks with different amount of liquidity and the marketplace type of model and their strategies is for Discovery it's for listing it's for SEO optimization it's for collections and categorizations so that your recommended different types of applications that fit your need as well as demos I think in the App Store model for mobile everybody downloads the free application and you're able to test it out before you pay for anything premium there's also connections to especially within Enterprise the actual sales people that allow you to you know extend that demos there's ratings and reviews a number of downloads so you build trust between as a buyer to the seller of the product so the optimization here is that audience so you as a set of buyers are looking to figure out which product fits best and you can also search the marketplace for saturation of your particular product and the reason why I want to bring that up is because I am recovering from working in finance for for six years and I've been in kind of the blockchain space for about eight now but what I like to see is the combination of financial products and what it works towards and so on the top here is really all of the activities that you would do with money right and you can see that different types of applications may start off with the finance side So within Facebook Messenger you build the community you figure out who your connections are so that eventually you can activate payments with them you can activate sending different types of nfts maybe eventually but along this kind of value chain what you're looking for is savings lending maybe you have additional funds that you might want to lend out you can do additional trading investing retirement and then eventually life insurance and it all looks like a super app which they do have in China through WeChat and other mechanisms or maybe Elon Musk is building something off of Twitter to have a super app but it may look like Robin Hood so that there is less and less money inside of your bank account and more and more money inside of a centralized entity so I see that very similar to total value locked as a metric within web3 and so when we're learning from this we're trying to optimize what it looks like in the web 3 world with defy this is a diagram that was published by the St Louis fed on Twitter around February of 2021 and uh I love it because it actually shows some understanding of how it Maps settlement to the different types of layers that are involved within defy and what I see here is you have ethereum or any blockchain as a settlement layer maybe ethereum more of a protocol settlement layer because now it's used for security purposes while layer twos are used for optimization for transactions and on top of that you have different protocol components that you can build that allows you to do amm pools exchanges different types of staking and lending protocols and then above that you can build applications and aggregators and so your stack is actually a front end that connects to this fat protocol and so the fat protocol thesis is that more and more of what you've built is already in embedded in the protocol so you have to worry less and less about rebuilding the same Payment Systems rebuilding the same mechanisms for building out a debt or credit type of economy the apps that we see in wallets usually have these features already built in because it's already just connecting to the different assets and you'll see more and more of staking protocols more and more of funds and different portfolio managers that only care about what's in their portfolio and care less about how they manage their broker dealer licenses and how they kind of grow that user base on top of that I love Dows I'm in a lot of dows and I think that it's usage for Capital formation as well as allocation is really key you know a single address that you can use for all of the different treasuries that are available and L2 optimizations and so here when I look at web3 and D5 and this is unfortunately or unfortunately Defy is a major use case the optimizations that I've seen are looking at digital asset value and how to incentivize usage and Investments across there if I were to summarize how web3 looks in terms of channels I think there's two major departments inside of a company that cares about web3 the first one is around Corporate Finance people that are looking at corporate actions maybe they want to figure out Equity shares and how to distribute that to their investors and the other one is marketing and so nfts and the growth of nfts and the growth of community engagement using nft collections to have different gated material and growing that as a newsletter and growing further is really important so it's no longer the early days of icos where you're just trying to sell Equity I think the name of the game is trying to figure out what can be constituted as not a security not an actual Equity investment and use it directly for utility use it directly for infrastructure and growing the product altogether so you see this in nfts for ownership for gating access for Collectibles digital twins as well as Dows D5 and within the metaverse so I think technology is about doing more with a lot less and I worked on a bunch of Central Bank digital currency projects and this is a diagram that we presented to Showcase that what we have in traditional Finance with 50 years of you know old technology constantly being updated maybe a few hundred million for it budget it's a very very inefficient stack it's very expensive to maintain and the cost of operations are very high and then what we're looking forward to within C5 and D5 is connecting to something where you don't have to worry about maintenance of these assets because most of it is open source and most of it is available to be audited and transparent we were at cybos in 2019 and our chief crypto economic officer Lex sokolin said that you would not build a Spotify on CD-ROMs and so you should not build the next generation of fintech on basically the old system of different banks and when we look at digital assets I think there is a lot of costs that go to zero so if you look at email right that is bringing the cost of sending messages between parties going to zero and I think that what we see in digital assets and why banks are super interested in the space is that the manufacturing of them and distribution is also going to zero so you're reducing a lot of intermediaries you're creating a new ecosystem where the time to Market is no longer your uh your value proposition and as we pitch this to different financial institutions you know consensus has been around for a long time but as we make this comparison we have Banks where you have your bank account getting your regular paycheck and maybe paying off your credit cards but when you enter in kind of the web 3 space you are really using the right products to connect you into this Greenfield Innovation so it's no longer just having markets and different types of providers on the the front and back and just paying in a very simple sense it's actually about building an ecosystem on top of a base payments layer and I personally believe that nfts and stable coins are the right bridging mechanisms for adoption so if you can imagine a checking account savings account and a crypto bank account what that would look like in the back end is you would in your treasury purchase stable coins and then provide exposure to different types of staking mechanisms but protected within a larger financial institution and for nfts you know I mentioned recovering from Finance because we were trying to replace all post-trade settlements right of big banks with new systems uh the nft marketplace and liquidity already exists somewhere else there's no existing infrastructure or vested interest to keep that software inside of a bank and so connecting that with high net worth clients is much easier because we're talking about infrastructure and kind of providing that what have we learned within inferior the early stages of the problem was that you don't want to use your devops you know main person to focus on maintaining clients and running nodes right to get access to all this information there's a lot of initialization times it's really an expensive resource and so in 2015 it was really to get an easy use API Suite in order to make sure there's zero maintenance everything's connected through these RPC apis what we found in the past you know six seven years is that there is a race downward because uh this is becoming a commodity right when you commoditize access to this it means that everyone is providing the same services and you are just kind of raise Earth and margins for all of it we also see that there's an abundance of choice so the more chains that we add to our Network the more it costs us because we have to keep up with all of these different teams and their updates and there's higher risk of us having downtime based on different networks having downtime and I think that there's a new user problem which is Source control of your application being pushed to as you can imagine you know different types of phone os's out there so all of these multi-chain ecosystems are trying to build from a base up and we'll get a lot of different new applications that are published to it we also see that it's not just you know the old days of creating a token portal where you are providing people access to their cap table allocation of tokens it's actually a lot more complicated a lot more integrated into web 2. and kind of as the last point you know the way that we're within infuria challenging this and Building forward is to build out the decentralized infrastructure Network which was talked about by EGR co-founder yesterday as well as uh pick different winners so we are supporting the base uh Network built by coinbase on top of op and we have a consensus CK evm that has launched uh actually there's a public beta launching by the end of the month there's also Advanced apis that we just got listed on Unity asset store and we acquired hal.xyz to do web Hooks and notifications thank you again for your time and I just wanted to say that I love youth Denver I love Oculus and the community here thank foreign