Would you sell your data, if you profited?
GM, we take the latest Web3 news and translate it into plain old English - so you can stay up to date, without your eyes glazing over.
In today’s edition:
Are games the new social media platforms?
Would you sell your data to advertisers, if you were the one profiting?
RESOURCE: What is DeFi? Learn in ~16:30
There's a Dr. Evil pun in here somewhere, but we can't find it...so here's a GIF
Terms used (click for translation):
Web3, Metaverse, Protocol, NFTs
Are games the new social media platforms?
We call the computers in our pockets 'phones', when really they're closer to a miniaturized laptop than anything else.
...but 'phone' has a nicer ring to it than 'handtop' (no thanks).
Andreessen Horowitz, one of the largest venture capital firms in the world, have a similar view on modern gaming.
When they look at the likes of Fortnite, League of Legends, and Minecraft - they see social networks with gaming features.
And in that, they see an opportunity.
Here's a technical breakdown of the two market segments and their value, from Andreessen Horowitz's point of view:
Social Media Platforms (~$1T) + Gaming (~$200B)
= a metric SH*T ton of money.
To capitalize on this opportunity, they've created 'Games Fund One', a $600M dollar fund with contributions from the co-founders of:
Discord (creators of that app we all chat on)
Riot Games (creators of League of Legends)
Blizzard (creators of World of Warcraft).
It should come as no surprise that a big focus will be put on Web3 and metaverse gaming.
So...more big names are piling into Web3 gaming?
Sure, that's cool. But it's almost par for the course these days.
What caught our attention here was James Gwertzman's elevator pitch for building games in the metaverse.
Gwertzman looked at the rich open world design of Rockstar's 'Red Dead Redemption', almost as a waste in its current form:
"Isn't it a shame that you can't go and play other games inside of the same vibrant world that Rockstar created?"
The idea of taking the richest 3D virtual worlds of the past decade and using them as a 'jumping off point' for new creations within the metaverse?
That gets us excited.
We have no idea if it's possible, but if anyone's going to do it, it's these folks.
Would you sell your data to advertisers, if you were the one profiting?
You know the weird web of dots and lines that are used to visually represent social networks?
They're called 'social graphs' and every interaction you make on a social platform (like IG or Twitter) adds/connects a dot on that platform's 'social graph' of you.
The thing is, you don't own the data that makes up your social graph. The platform does...and they sell that data to advertisers who want to predict your buying behaviors.
(But that's old news).
So what if you could own your own social graph - every comment, like, photo, video, follow, DM and caption that made it up?
You could decide whether you kept that data to yourself, or rented it out to advertisers.
It's a bold concept! And that's exactly what Aave's Lens Protocol is aiming to do.
There is a lot (and we mean A LOT) that goes into the finer details of how this all works.
Too much to write in a single newsletter, so if you want the gritty/long form details, you can find them here.
In the meantime, here's a boiled down version (like, 'forgot it was on the stove and it's nearly all gone' boiled down):
The system works using NFTs.
Profile NFTs
These will act as a ledger of all posts, comments, likes that your profile generates.
Follow NFTs
For every person you follow, an NFT is created, cataloguing your interactions with that profile into a ledger.
Publication NFTs
These will actually store and link all of the media (posts, comments, photos, videos etc.) listed in your Profile & Follow NFT ledgers.
I.e. Profile and Follow NFTs are like hyperlinks, while the Publication NFTs are like the Google Drive files at the end of those links.
The idea is that any old developer can come and create an app that displays these profiles / photos / interactions etc.
They might design this 'display app' to look like Twitter or Instagram, or something new all together.
...but regardless, the app won't own the data it's displaying.
You will.
Whether this can work at scale - we have no idea.
Trying to solve for hurdles like: each post incurring a transaction fee, removing illegal content and convincing Apple/Google to let these 'display apps' onto their app stores?
It wrinkles the brain.
Resource of the day
What is DeFi?
Learn in ~16:30
There's a Dr. Evil pun in here somewhere, but we can't find it...so here's a GIF:
So apparently Seth Green is into crypto?
And he just got rinsed out of ~$300K worth of blue chip NFTs through a phishing scam.
Here's how these phishing scams usually work:
The set up
A scammer creates a website impersonating a trusted NFT project, like Bored Ape Yacht Club, or in Seth's case - GutterCats.
The bait
They start promoting an Air Drop (i.e. a giveaway) or free upgrade (eg: turn your Bored Ape into a Mutant Ape)
The switch
To receive the Air Drop or upgrade, users need to connect their wallets and show proof of ownership of the original NFT.
Instead of sending the advertised 'bait', the scammer takes everything in the connected wallet.
It's rough!
And scammers are finding more and more ways to build trust with potential victims.
The key takeaway here: vet all promotions and be very cautious when following links.
(we promise the one below is safe).
Your Daily Dose of Web3
Crypto and blockchain get a gut check on risk and stability
Ethereum nears major upgrade as testnet set to undergo merge in June
Why Robert Kiyosaki (author of Rich Dad, Poor Dad) thinks bitcoin’s plunge is great
Alright, that’s it for today!
Love to the family,