The Big Picture
Hey friends,
It’s been crazy out there.
So I’m recommitting to this weekly newsletter.
Over the past five years in crypto, what’s helped me is understanding the industry through time-tested knowledge in psychology, philosophy, commerce, startups, and technology. That is what I want to add to the conversation: a focus on the lessons and ideas that outlast any short term new cycle.
As you know, I’ve spent the past two years at NFT startups leading community building, partnerships, and strategy. I’m not the only one who thinks NFTs are the way that most people will first experience crypto. This space is still small yet growing rapidly. Nike, Disney, and Starbucks announced major moves in just the past few weeks. There’s a big opportunity here now.
So I’m doubling down into the turmoil.
First, a post about the big picture.
NFTs are a major upgrade for humanity because they represent digital property rights.
To explain, let’s go back to January 8, 2021.
I saw an article that Twitter had permanently suspended Donald Trump. Regardless of what you felt about it, this was unprecedented. In front of the world, they exposed the hole in the fabric of our digital lives.
We do not have digital property rights. We are just renting.
We do not own our email accounts, Twitter handles, and social connections. We need permission and access to interact with these digital properties. Literally, your data is hosted on Big Tech’s data servers, which they can edit unilaterally. There’s few if any checks on this power (i.e. they can remove the sitting US president).
If you’re thinking “well they wouldn’t target me,” just look at the news from PayPal a few weeks ago. They proposed a new policy that would fine any of their users for saying anything they disagree with. Here’s former PayPal President:
While they backtracked on this policy, it's a sign of where power resides and broadly it can be wielded. We are at the mercy of our digital landlords’ whims. And that should be concerning if you depend on platforms to communicate and transact with people. What happens when you disagree with the people in charge?
I think the world would be a better place if we had checks and balances and governance over our digital property.
Enter NFTs.
NFTs are digital property rights.
Let me explain.
Specifically, they are a deed to a digital object hosted on a blockchain.
A deed is a record of ownership, just like with a homeowners deed. The deed is not the house itself, just a record. A simplified NFT record looks something like:
A blockchain is a social computer governed by many entities. Any changes to records on a blockchain must be coordinated and verified among many different actors.
Enter checks and balances. Blockchain records rely on group consensus. Updates only occur after the group confirms changes are valid and legitimate. Only then can it be changed. This is in contrast to Twitter’s computers fully controlled by Twitter.
In this new system, no individual actor can change a record unilaterally.
There are several teams already building a future where your identity and social networks are stored as NFTs. Twitter would be an application on top of that data. This creates positive competition. If you disagree with how an app serves you information or if they censor content in a way you don’t like, you can move to another service. Your identity, network, and property would not be monopolized behind walled gardens of private companies.
We have an opportunity to build our way to a better situation. And refuse to accept this status quo.
The big picture is clear.
See you next week.
Brian