The high-level goal of the study is to design a primer to the Web3 world and build a case for the value of NFTs specifically. The research scope is on media & entertainment industry (e.g., film & TV, gaming, music).
Uncommon Grace The Autobiography of Isaac Folorunso
Web3 MIT Independent Study by Lena Hairadin
1.
2.
3.
4. Allows you to view
First iteration of the internet
characterized by simple, static
websites and content viewership
Allows you to participate
Firms offer services in exchange
for user data, typically focused on
user-generated content
Allows you to own
Decentralized online ecosystem on
blockchain; greater user control of
data and no middleman platform
5.
6.
7.
8.
9.
10.
11.
12.
13.
14. By 2027, America’s workforce
will be majority freelance
(86.5 million)
Total addressable market
expected to reach above $1
trillion by 2023
Creator Economy startups
earned $800 million in VC
investments since Oct 2020
17. The top 3.5% of YouTube channels—performing about 1M views per month—
monetizes ~$12,000 to $16,000 a year. Right around the federal poverty line.
18. Musician Grimes sold $6M of digital art in 20 minutes.
Rapper Lil Yachty’s token, $YACHTY, sold out in 22 minutes.
19. Example: $JROCK
UCLA Bruins basketball player Jaylen Clark launched
$JROCK, a social token that offers holders special
access to tickets, content and merchandise.
An interchangeable form of currency
connected to an artist.
• Like a stock, social tokens appreciate or depreciate
over time with the social capital of the artist
• Social tokens are powered by blockchain technology
20. • In 2016, Khalid releases 1000 social tokens
called $KHALID before American Teen is
released for $100 each.
• Each $KHALID owner gains access to:
• Exclusive Discord server
• Monthly virtual call with Khalid
• Priority for backstage concert tickets
• 5% of Khalid’s royalties shared across all owners
21. $100 $1000 $10,000
1000 1000 1000
$100,000 $1,000,000 $10,000
--- 10x 100x
Khalid benefits from acquiring an
initial $100,000 investment and
increasing fan engagement
Fans benefit from investing in Khalid
directly and gaining long-term financial
return (i.e., token trades, royalties)
27. Largest NFT exchanges and projects based on all-time sales volume as of Nov ’21 (in millions U.S. dollars)
28. 1. GMV of NFT trades first inflected in Feb 2021 — growing ~20x from ~$25M in Jan 2021 to ~$450M in Feb 2021.
2. In Aug 2021, GMV exploded ~10x to $4.2B, largely driven by OpenSea and CryptoPunks.
The sum of all NFT transaction values
spiked twice in the last two years.
29. The Ethereum blockchain is
used for the majority of NFT sales.
NFT sales are predominantly Art &
Collectibles and Gaming transactions.
30. The world of NFTs are in rapid flux as new
startups and initiatives capitalize on Web3.
31. A user flow to demonstrate how elements of the NFT ecosystem
combine in the NFT purchase process (non-exhaustive).
32. The Merge by Pak
$91.8M
The First 5000 Days by Beeple
$69M
Human One by Beeple
$28.9M
CryptoPunk #7523
$11.7M
Stay Free by Edward Snowden
$5.4M
Save Thousands of Lives by Noora Health
$4.5M
33. While the NFT or digital certificate of ownership is hosted on the blockchain,
the asset purchased is hosted on a secure domain.
46. Are NFTs the next asset bubble
waiting to burst?
However, current actors in the NFT industry are
early adopters and crypto enthusiasts.
Widespread adoption is dependent on accessible
front-end NFT products.
The full value of NFTs and social tokens are bound
by the limits of human creativity.
Startups, tech players and investors alike are
investing .billions into the future of Web3.
48. • Open Sea: The Non-Fungible Token Bible
• Harvard Business Review: How NFTs Create Value?
• The Atlantic: What Critic’s Don’t Understand About NFTs
• NFT NOW: NFT 101 Everything You Need to Know
• NYT Opinion: Another Big Step Towards Digitizing Our Lives
• A16Z: Why Web 3 Matters?
• “Hustle and Flowchart: Web3 and The Creator Economy”
• “Web3 Breakdowns”
• “How NFTs Are Building the Internet of the Future?” (TED Talk)
• Not Boring by Packy McCormick
• Creative Economy by Peter Yang
• Digital Native by Rex Woodbury
