How Big Brands will Lose (& Win) in Web3 in 2023 by Sean Li

oh yeah sorry guys happens to me every time uh hope you guys didn't party too hard last night um so yeah good morning everybody uh today today I will be speaking to uh how big Brands will lose or win in web 3. so first a little bit about myself I'm Sean Lee co-founder and CEO of magic I've been around for some time in devtools and infrastructure space so if you're a builder you may be familiar with the little whale icon on your menu bar that's my baby I sold my first company to Docker which later became Docker desktop and currently used by millions of developers a month I fell into the ethereum rabbit hole in 2016. end of 2016. you know instead of just speculating on cryptocurrencies the idea to run anything on a decentralized world computer was very inspiring so yeah that motivated me to start a company in the space to build the essential infrastructure to help onboard the mainstream users to web through and show them um yeah the capabilities of this new world computer um to date we've onboarded more than 20 million new users to web3 and 130 000 developers while working with some of the top depths and trailblazing companies um we we are in extremely tumultuous market right now right macro and micro um but what we're really seeing from our conversation with Enterprises um is that we're having a very different experience we've seen a precedented amount of interest from Enterprises wanting to enter web 3 with a web free strategy you know we've seen this across all Industries like music gaming retail luxury Brands Sports they are experimenting kind of new Revenue routes to to expand into web 3. and yeah I feel like onboarding Enterprises is really the most pragmatic way to get a bunch of mainstream users into web3 by leveraging their large user base and brand so I like to share four challenges uh we're seeing with web3 Enterprise adoption first may not come as a surprise pretty much Technology Innovation should be going forward not backward if you've experienced getting onboarded with metamask or other browser extensions it's great for the one percent crypto native users but not necessarily complete newbies into space who have no idea what's going on telling them to jump through the hurdles download an app writing down their seed phrases is is just a no-go for a lot of these users the equivalent of this in web 2 is asking users to set up their own email SMTP server before being able to send their first email so that's kind of ridiculous I feel like the status quo of web 3 currently is leaving hundreds of millions of users on the table while obsessing and optimizing for the one one percent crypto native users um problem two uh many solutions out there aren't Enterprise ready what about what I mean by that is you know reliability uh performance or scalability uh and security you know Enterprises don't trust companies without security and compliance audits you know how many can have external agencies examine their controls such as stock 2 type 2 CCPA gdpr you know companies really need a reliable Wireless solution and infrastructure that can scale to meet really high demands for example a really high volume drop from a really popular brand that will get sold out in less than less than a few minutes um yeah the next problem I like to share is um of course there's a lot of hype and speculation in the nft market and there's not a lot of projects with with great real utility you know this requires a lot of creativity or innovation that give value to customers not just in web 3 but also in the web too Realm I have to do this but um yeah it's uh with with this whole FTX thing we've seen an increased interest from Enterprises who are interested in a non-custodial solution um uh we need to create almost a zero trust system where companies never see the private keys at any part of the flow and it's not sort of a central point of failure um the one thing we got Sam to thank for is you know FTX really drove alignment uh between the Enterprises and end users because now the Enterprises are wanting non-custodial Solutions as well instead of just being okay with a fully licensed custodians um so as as magic we've been on a mission to reduce this barrier of Entry since 2019 and bring the next billion users to F3 what magic is is that it's a SDK that creates web 3 wallets using web 2 login say with the email or social login plus an option to apply multi-factor off to for extra security so no downloads no C phrases we also work with quite a few payments Partners to provide full stack web3 onboarding such as Fiat on-ramp and nft checkout um to be compatible with Enterprises requirements on security reliability and scale users wallets are managed by our patented enterprise-ready non-custodial solution where we can provide a web 2 style login but while giving the benefits of a non-custodial infrastructure that is stock to type 2 CCPA and gdpr compliant it is continuously battle tested externally and internally through our pen testing programs so in this setup to oversimplify Magic doesn't exert any direct control over users private Keys the keys are generated within a client's iframe and Magic never sees the keys in any part of the flow plus users can export their keys at any time not only magic is enterprise it's a great Enterprise solution it's also easy to learn and it just takes a couple lines of code to implement as a developer it works right out of the box if you use web3 JS or ethersjs which Support over 20 blockchains including polygon flow Solana and many languages and Frameworks across web and mobile platforms so yeah here are some examples of the nft launches we've done um you know Hot Wheels with Mattel uh the parade and fuse Macy's through our partner nifties we've launched nfts for Game of Thrones Matrix Shark Week and Nat Geo or snow crash so all of these pretty much sold out really really quickly so hence uh proving why performance and throughput is extremely important for this um yeah some some case studies uh why the metal integration was really successful is they pretty much abstracted away as much web3 as possible so it almost feel like an entirely web 2 experience where our key management can be plugged right into their own identity uh and our system so yeah as a result over 300 000 Hot Wheels nfts were purchased uh whereas there's 50 000 new unique wallets generated by Magic um also in web3 we work with our partner in mutable X um pass on their passport which is a branded wallet experience that can be accessed across games and marketplaces and also for Macy's we were powering their virtual fundraiser that they will be having in the next year's event so yeah with large Enterprises getting into the space There's an opportunity to capture you know billions of users and get them to the to the space therefore we're all making web 3 much bigger as up high instead of just focusing on that one percent um website really opens so much more possibilities and opportunities than web too you know like consumers can become investors renters can become owners you know players can become earners users can become Builders you know the world is becoming more fluid and and like water so yeah to wrap this up this is a pretty big week you know we have a bounty program if you want to use magic I will be splitting five thousand dollars among three winners and also uh if you scan the QR code you can access our nft developer starter pack so it's got a lot of nice content and resources to help you get started um yeah so you can visit us at our booth it's really close to the coffee stations uh myself and our team will be happy to speak with you yeah thank you so much you can find out more about magic at magic.

link thank you [Applause]