Decentralization and why blockchain matters (YPO)

DECENTRALIZATION
AND WHY
BLOCKCHAIN
MATTERS

BACKGROUND:
Open-source projects were revolutions against the unfair profits that closed-source
software companies were reaping. Microsoft, Oracle, SAP and others were extracting
monopoly-like “rents” for software, which the top developers of the time didn’t believe
was world class.
EVOLUTION:
Open source software was originally created by and for developers, which meant that
at first it wasn’t the most user-friendly. But it was performant, robust and flexible.
These merits gradually percolated across the software world and, over a decade, Linux
became the second most popular OS for servers (next to Windows); MySQL mirrored
that feat by eating away at Oracle’s dominance.
THE OPEN SOURCE MOVEMENT

GITHUB - HOW CODE MANAGEMENT IS DONE
Closed source ( HIERARCHICAL TOP DOWN
source code management )
GIT which is DECENTRALIZED and OPEN

SCALED TRUST WITH TECHNOLOGY WEB 1.0/2.0
I TRUST STRANGERS IN
THIS ORGANIZATION
I TRUST YOU I TRUST THIS
ORGANIZATION

CONTENT IS CONTROLLED
Content Monopolies

DNS CENSORSHIP AND DEPLATFORMING

TRUST IN GOVERNMENT IS DROPPING

PURCHASING POWER OF CONSUMER DOLLAR ALL TIME LOW

Data and the network effect (and you don’t own it)
YOU

MOVING TOWARD THE INTERNET OF VALUE
VS.

BLOCKCHAIN?
Information “Value”
INTERNET
TCP/IP & HTTP
SOUND
Music,
recordings
VALUE?
Assets, wealth.
Securities, IP,
currency, trusted
information
(ID, ownership)
TEXT
Books, articles,
messages
IMAGE &
VIDEO
Source: Credit Suisse, Julius Baer
TRUE DIGITAL OWNERSHIP

ON THE BRINK OF SECOND BAILOUT OF BANKS

#DeLAW
#smartcontracts #programmeablevalue

COMMUNITY NETWORK = TRUTH & TRUST
COMMUNITY
INDIVIDUAL NETWORK

EVOLUTION OF THE WEB
WEB 3.0: OPEN TRUSTLESS PERMISSIONLESS

#DECULTURE?
#Freedom
#Equity
#Privacy
#Truth
#Capitalism
#DataOwnership
#Decentralization
#Nocensorship

The cats you see on this page are from
CryptoKitties, an app by Dapper Labs that
is built on blockchain, similarly to Bitcoin
and Ethereum - but CryptoKitties uses NFTs
and is not a cryptocurrency.
NFTs allow CryptoKitties to be traded as
unique items. Ownership is tracked
securely thanks to blockchain.
NON-FUNGIBLE TOKENS (NFTs)
43
Emerging segment in global game market: virtual tokens for digital scarcity, security and authenticity
ERC-20: fungible tokens. For ownership of
assets like currencies. Such tokens are
uniform and interchangeable.
ERC-721: non-fungible tokens. For ownership of
things. Such tokens are completely unique and
not interchangeable.
Token Interfaces
NFTs are not
cryptocurrencies!
Fungible Non-fungible
E.g., One US Dollar
E.g., Limited-edition postal
stamp
Interchangeable Not interchangeable
Uniform (all are the same) Distinct or unique
Divisible Indivisible

BIRTH OF A NEW ASSET CLASS
Value: $ 6m Value: $ 38k
Value: $ 9k Value: $ 50k
Value: $170
Value: $500
$60B+
2019
$100B+
by 2022
The global virtual goods market size
was valued over USD 60 billion in
2019. The rising popularity of
free-to-play games have encouraged
the purchase of virtual goods, thereby,
resulting in a rapid forward
momentum of the market.
The market size was forecasted to
reach a value over USD 100 billion by
2022. The emerging popularity of
MMOG facilitated by social networking
websites has led to gamers spending a
considerable amount of their time in
the game worlds.
Source: Adroit Market research
Eve Online Revenant Supercarrier

THE 1-1-1 WAS SOLD FOR US$113,000 US$2.48M TOTAL LAND SALES
LANDS are digital pieces of real estate in The
Sandbox metaverse that players can buy to build
experiences on top of. Once you own a LAND, you
will be able to populate it with Games and Assets.
Each LAND is a unique (non-fungible) token lying on
the public Ethereum blockchain (ERC-721)a
The ﬁrst oﬃcial Formula 1®
digital collectible, the
"1-1-1" car by Animoca Brands, was acquired at
auction for 415.9 ether. Worth approx. US$113,000
at the time of sale, this was one of the highest sums
ever paid for a game-based non-fungible token
(NFT) or virtual asset, and the highest price ever for
a branded game NFT or digital car.
THE MOST EXPENSIVE BASKETBALL
CARD EVER SOLD - US$4.6M
Dallas Mavericks star Luka Doncic set a record on
Feb. 28. But it wasn’t for his moves on the court.
Instead, his autographed NBA rookie trading card
sold for $4.6 million, making it the most expensive
basketball card ever sold

48
2.7 BILLION GAMERS
Number
of
gamers
in
billions
2014 2015 2016 2017 2018 2019
1.82
1.82
2.08 2.21 2.47 2.60
2020 2021
1.96
2.73
Asia Pacific represents more than double the revenue
generated in the second largest region, North America (2019)
(source: Statista.com 2020)
1.2 B
gamers
Asia Pacific
The World
$72.2B
revenue
The video gaming industry is huge and shows no signs of slowing down.
While there were about 2.5 billion video gamers across the world in 2019, this
figure is expected to further rise to more than 2.7 billion gamers in 2021.
X2
market size of
North America
2.5 B
gamers
About 2.5 billion video gamers
across the world in 2019
66%
of population
66% of the U.S.
population are gamers,
up from
58% just 5 years earlier
46%
female
Female gamers made up
46% of the U.S. gaming
population in 2019,
up from 38% in 2007
United States
Source: Statista.com 2020
NUMBER OF ACTIVE GAMERS
WORLDWIDE FROM 2014-2021
Source: statista, 2019

49
75% INCREASE IN VIDEO GAME TRAFFIC DUE TO GLOBAL LOCKDOWN
Type of data Week over week increase
Gaming 75%
VPN 34%
Web traffic 20%
Video 12%
Social media usage 0% flat
Global lockdowns intended to stem the spread of COVID-19 is pushing video game traffic to new heights.
As more entertainment options are canceled in communities, there is an increase in online gaming.
The week-over-week numbers during peak hour usage show a staggering 75% increase in video game traffic.
Video games benefited the most by far, according to the report. Web traffic saw only a 20% increase in that same time
frame. Meanwhile, video streaming was up by 12% and social media traffic remained flat. This shows that people are
turning to video games more than other forms of home entertainment. (source: Verizon)
Weekend by weekend, the PC gaming service reached 23.5 million simultaneous users on March 30.
Players have pushed PC gaming service Steam to new user records for three weekends in a row. (source: Steam)
Steam has seen an increase in concurrent users of 22.6 percent in the last 30 days. (source: Independent tracker
SteamDB)
75%
increase
23m
Simultaneous
users

REAL PLAYER ECONOMIES THROUGH BLOCKCHAIN
GAMEE
NFT, ASSET, SPORTS NFT, ASSET, LAND NFT, PLAY TO EARN
DIGITAL COLLECTIBLES, NFT ESPORTS, ACTION, NFT

"Decentralization has, not only an administrative value but
also a civic dimension since it increases the opportunities
for citizens to take interest in public aﬀairs; it makes them
get accustomed to using freedom. And from the
accumulation of these local, active, persnickety freedoms, is
born the most eﬃcient counterweight against the claims of
the central government, even if it were supported by an
impersonal, collective will."
- Tocqueville author of Democracy in America 1805-1859

Decentralization and why blockchain matters (YPO)

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