Tokenizing Brands : 3 Key Learnings

foreign [Music] founder and CTO of smart token Labs we are a team about 40 people and we have been working in Organization for four years and in last two years we have witnessed a lot of brands and take their huge interest in in the nft and blockchain space and we helped many of them to tokenize their brands and this is our learning first there's a strong demand for brand Brands to connect their audience with an nft there's a difference between a brand lover and a holder of brand token that gives the brand access to Their audience a lot of their users to access ecosystem and put a value into their loyalty but there are two barriers first wallet not many people in the Brand's audience user base have wallet and is not easy to get it there the second signature so a lot of users hesitate to sign any message or transaction when they are holding brand tokens and understandably so I'm going to talk about three cases where we helped friends to tokenize and I will explain how we overcome or amended these barriers and share our learnings so first library is a Switzerland luxury skin care brand it's the world number one and their user base a high net worth people with a love for art so they do art exhibition art review art auction and that's basically their Market position what we did for them is a space beyond an ft project for Everlasting digital art however these are not traditional these are not technical audience these are traditional art buyers and you can imagine most of them never had a wallet before and the format of the sales is quite traditional as well you can imagine a joint Hall with a rotating light and display of digital art moving slowly and people holding champagne in their hand and sales was done in that moment and you can understand that this is not a perfect moment to teach them how to install a wallet and get the seed phrase so what we did for them is we allowed them to purchase the art with their credit card and we will send them an email with a magic link that contains the cryptographic information needed to later prove their ownership of this digital art if they need to use that with a smart contract or debt so after the sales the buyers can set up their wallet in a later time and this sales was attached was linked with their email address and they need to obtain the email address attestation I'll link that with their ethereum address and from that moment on depths and smart contracts will recognize them as the legit owner of this digital art this we effectively have pushed the moment of install wallet to a much later date therefore smooth out the onboarding process and that's the first example the second one is actually the step count and the target audience is everybody in this room this this time understandably our audience is more sophisticated and most most of us have a wallet but we still find it beneficial to smooth out the sales process use a testation and there are a user experience improvements using this technology so we did permissionless perk which is um project where third-party websites can recognize devkin ticket holders and give them special perks and offers this is done by sending an email to every ticket buyer with a ticket a test station magic link if you click that link the cryptography information to prove that your ticket holder is stored in your browser and later when you access third-party websites this information will be working to prove that you are ticket holder and again if you should sign a message sign a message or do a blockchain transaction the link the Republic information will be linked with your wallet that can be configured later Sage therefore users can buy Dev contact with credit card without worrying about wallet and get a wallet set up later beautiful thing about this design is Devcon does not have to verify the ownership it's not like Google for example every time when you use Google ID Google has to be online and you connect to them Devcon can be offline when you're using permissionless perks so that's um what we did for devcom and the last example is Shopify where we provide worked on the VIP shopping experience via nft the idea is if you hold an ft you can access gated content special discount or special offers on the Shopify website what we discovered is user hesitate to connect to their wallet on e-commerce website so we give them our product brand connector which allows users the option that they can be brought to a safe website connect to the web token to their wallet choose which token to use in the shopping process and the proof will be sent back to the shopping website for the shopping experience and this allows us to allows users to not having to expose their wallet address to the Shopify websites and the users will not have to sign a message on the Shopify website so these are the three projects we did that I want to share with you today and if You observe all these and you will notice that all these projects about how websites can interact with token holders through tokens and all the technical details such as wallet connection and signature are just infrastructure to support this happening and in terms of user user experience they are actually the hurdles so that brings me that that brings me to this point that we are working on the infrastructure to support use of token and websites but there is a much bigger infrastructure issue at play that is today's web 3 websites lack the trust anchors now before I explain the trust anchors let me ask a question we know today that web true websites are built around centralized points such as Facebook Google and Apple and we know that web 3 is decentralized web which does not depend on this centralized services and we have been building depths for that future but which depth we built today can replace Google and Facebook and Apple to provide these essential internet Central Services I will elaborate this within with the example so suppose you are buying the ticket from movie theater let's say the minions you want you go to movie theater login you probably will log in with Google ID you probably will pay with Google pay or Apple pay once you've got movie ticket it can be saved into your Apple wallet and once you finish purchase you might want to share it on Facebook or you might want to add it in your Google calendar or you might want to get a Google map pointer this is a typical web 3 web 2 experience this is very smooth in five minutes you use the five or six Central Services provided by webtool by Google Facebook and Apple these are not just Central Services these are trust anchors because the movie theater website cannot do this by themselves even they have the software and code they cannot provide Google at ID login even if they have the login code they would have to if they don't use it they would have to end up with user management password they cannot share it on your shared movie purchase to our friends because you are not entrusting them the movie theater to manage your friendship is not because they don't have the code they can have open source social media but they they couldn't they don't have that trust anchor to do so so today's web 2 experience was enabled much by these trust bankers and today's customers are already used to that they will not go back they will expect no less from web free but where are the things that can serve at this function web3 and for tabs will not do that we've been building that but that's not for it three reasons first user demand convenience users don't like to go to a third party website to go to while they are shopping go to a Dev website prove they have the token and come back to the shopping similarly in web 2 they don't want to go to PayPal finalize payment and go back to the checkout process second depth suffer from the same security and availability issue debts are just normal websites they are not secured by blockchain consensus blockchain smart contracts are Debs are not they are repeatedly hacked and they are sometimes not available today you will go to aav Joy ether and then go to the movie theater and pay it it's not integrated process smart contracts are composable debts are not so there's three reasons steps couldn't do the trust anchor role can it be tokens we have been working on tokenization for three for four years and we have seen a lot of cases and I'm going to share my experience with you on token working and the trust anchor but let's hold on for a moment to think about it today everything is based on the existence of the central trust anchors it's actually quite hard to imagine web3 without them it's hard to imagine what will the trust anchor be if we don't have Google will the Google login the Google ID be an identity token will the Google Calendar become a calendar item token that is in user's wallet will the Friendship the connections you have on Facebook be tokens it's difficult to have a picture of the web 3 with new trust anchors we don't know what they will exactly look like and how will they exactly work but we figured out four requirements for token to act as a trust anchor and these four requirements are trust interoperability privacy and security happened to be tips for you to remember tips trust means that users should not trust websites as much as they trust their tokens again take the movie ticket for example if you have nft let's see the minions and if you want to buy discount ticket with that you don't want you don't you won't trust the movie theater website as much as you trust your meaning token you don't want to connect your token there connect your wallet and do any transaction the website might be insecure and steal your meaning so trust anchor should be on tokens not on websites that uses tokens and second interoperability that means you should not depend on websites to have the correct code for your token so you don't want to go to a website which tells you sorry we cannot serve you because we only recognize version two of the minion token you have version three you don't want to wait for them to upgrade or you don't want them to um if you have new token takes them the next cycle to understand your new token therefore token and the website code should be separate and into operate more in between and then we have privacy which simply means that the website should not know everything in your wallet it's not okay if you go to movie theater and now they know that how much ether you have or everything you have and finally there's security meaning that you cannot trust you cannot dedicate transactions to the websites let's say you have a Dominion token let's say you can lend it to a friend to get Discount Ticket you don't want the movie theater to do the landing because how do you know the movie theater website is doing it correctly and not taking away your your money or your your minion token so the transaction should be done by secure code that comes with token and with these four requirements satisfied we develop a our core technology called token script which is enabling technology for token to work as trust anchor I don't have um too much time to go into technical details but I will just discuss I will explain the design principles and the technical characteristics of token script so first it is strongly bound to contracts meaning that the users should trust the token token script as much as they trust contracts they are run they are written by the same team and there's cryptographic proof about their linkage and second token script is not executed on blockchain they are executed used in the user's wallet in user's agent for example Alpha wallet which is our wallet product leading open source wallet with more than 700 Fox it has a runtime environment for token script so that token code can run the wallet and interact with the website and then it is composable meaning that you can use multiple tokens in one web process which is not often seen in today's steps so you can you can use one token for payment one token for Discount and and you can use the you can you can get a movie ticket as a new token download it from the website into a wallet it's composable on the front not only on the in the Blind blockchain and finally it has both UI and API and this is a this is different than most tokenization solutions so most organization Solutions today build tokens like API for example the graph you can inquire a token and get for example which the the data of creation for the token who is the current owner but it's crucial for token to be a trust anchor is crucial that tokens have user interface if you go to a movie theater website login as Google you will hesitate if it doesn't display the Google logo or if the login box deviate from the Google experience similarly for if you want to use the minion token on the movie website token has to control the part of the UI that interacts with the website so you see it's essential that token generate UI in a trusted environment so um we have eight minutes left and um for my talk and then I have finished sharing all my knowledge but I want to pause here and then let all do a thought experiment we have been living in the world enabled by blockchain Center points for so long it's actually hard to imagine what internet could look like if we did not have to depend on the center points for example if you have a Tesla car they have integration with Google with the with apple wallet Tesla car key can be an apple wallet and you can send it to a friend if he wants to borrow your car you do this on iOS as long as you're in the same ecosystem this is the organization it's done in the iOS system it's not down on the blockchain but can you can do this now today but can you flow to your Tesla car on the rental market by hours third same technology you cannot do this today because apple is not allowing it I don't know why they probably don't see it profitable or probably it's too complicated but you need Apple's permission to do this what internet would have looked like if you didn't have to depend on Google to permit you I put permission to do this you will be able to set up a rental market very easily as long as tokens support them and the Smart Talk Smart Car vendors will produce their own Smart Car tokens to allow this to happen you can rent a market in Bogota or any sleep City you don't have to be a world leader to operate in rental market that would that that is I'm not getting it what is the license of the code base like is it 2.4 sarpash or something MIT license okay um so our implementation is in a MIT license so that's why we have uh that actually is right now it's embedded in Alpha wallet and it's not a standalone product we were making a standard balloon product so right now Alpha wallet has 700 Fox and most of them didn't tell me about it because we allow MIT hello yeah hello how are you hey I was going to ask what do you think are the main barriers for tokenizing traditional banking or Finance products such as portfolio purchases and what do you think would be the position of traditional banking system towards this kind of Innovations if history is proven true again they will be the last wave to be tokenized so so they will be under a lot of pressure and eventually move their ass if you think yes how do we know which token providers can we trust because oh that's that's we don't know the the thing is um uh although token can be acted although token is used at trust anchor to enable web search services that doesn't require users trust them as much as token token itself needs to be trusted and the level it can be trusted is actually again free market competition what did I say for example somebody wants to download a better calendar how would they know that this that this uh company uh isn't let's say a phishing scam and I actually don't know I imagine that the wallet will will have a calendar integration so if you enable wallet calendar integration the wallet will create a calendar token on your neck on your behalf in your name and then but whether or not other people will believe that you will actually realize your promise if you sell your calendar item to other one that would require summer tests because some sort of form of hesitation lab you have reputation stuff like that we're building these things but I don't know how it would look high in the end yeah well thank you so much thank you for the presentation