[REDACTED] 2024 | SWEAT + NEAR = Consumer Crypto

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1. 0:00

   good to be here thank you very much for finding time to escape those coffees and drinks and cigarettes you know whoever and of course web audience uh thank you very much for checking us out so I am going to talk about slightly different stuff that I guess most of the people here I'm not going to go into massive details on Tech but we're going to talk about the big picture and the future that we are all going to be with the benefit of hindsight looking back and

2. 0:30

   kind of going this is when it really started to happen and the title that I put is very similar to actually the title that you've seen before is what is happening beyond the infrastructure bubble and of course you've seen the answer it's consumer crypto but let me give you a little bit of context and we are talking a lot about tribalism in web 3 so in 2009 there was a Bitcoin and the

3. 0:55

   analogy that we're using internally is it's an island right so there is an island it's called Bitcoin and there are a bunch of people playing their games there and you know kind of doing their trading and then in 2011 there was another Island that appeared and then in 2015 a lot more Islands appeared but again they are all Islands they are all separate and as Ilia was saying it's a

4. 1:20

   zero sum game because what started happening that these islands were competing for attention not just users but Builders and Founders now 2019 is getting really really quite big already in terms of number of chains and these are not everything these are not all the chains that are in existence but probably just the biggest ones that all of you have heard about now in 2022 it starts to get really really busy I guess that top left over there you know kind

5. 1:50

   of with the beach in the middle that's probably salana right given what we're seeing right now now in 2024 we have more than a thousand chains in existence some people say 1,800 but you know what once you go above thousand it doesn't really matter we have way too many chains and about 200 of them are still in development I'm sure that you've heard of fundraisers that are happening right now you've heard and you've toen you've spoken to Founders building new chains about three months

6. 2:25

   ago I was at the party in Portugal where 20 people attended four of them were working on new Layer Two and layer one chains because the easiest thing for fundraising for many many years has been to build another chain and all of a sudden money was thrown at you now this complexity is not everything around these islands we've built these gazillion different Bridges we built you know kind of bilateral Bridges some multi-chain bridges multi-chain dexes

7. 2:57

   cross chain messaging protocols etc etc there is just huge amount of complexity but if you really look at it as a map islands and a lot of stuff connecting them it still is a tribal world every island has their own story every island is waving their own Flags you know if you're in salana then you're not you know or you're against other chains if you're on base you are not on other layer twos it is actually fascinating

8. 3:28

   how backwards this thinking is is now what happens when all of this is going to burst and it is definitely going to burst because look if you have 1,000 chains and if you look at daps so decentralized apps that have more than thousand users the count of DBS is less than 600 so let's use the analogy of rails right the blockchain is a rail we have thousand Railway companies chasing 600 carriages to run on them that's crazy

9. 4:01

   that doesn't work Railway company and rails need to have a lot higher number of daps running on them and a lot higher number of users so we have certainly overinvestment is going to be next and you've seen it in the title that it is consumer crypto and some people kind of challenge me how do you know how do you know that it is going to be consumer crypto and here I'm going to show my age

10. 4:44

    because we have seen it all before if we think that web 3 is a unique industry that is working in its own unique way and is completely separate and is not going to be developing in the same fashion as other Industries we're kidding ourselves so let's look back in history I already referred to railroads the Nugget that I have is in the UK before 20th century there were 280 Railway companies within 70 years they

11. 5:17

    collapsed to seven then to one and 60% of all of those Railways were pulled out of the ground because they were generating no traffic and there were absolutely no return right now railways in the UK are not generating a penny and it is a disaster in terms of kind of infrastructure maintenance but Railways gave birth to pretty much every industry when I met somebody from the US say oh I live in Atlanta Atlanta was created on the

12. 5:49

    Confluence of several Railways there was absolutely nothing there Atlanta was given birth by the fact that there was a junction of multiple railways so it didn't just start things it didn't just start Industries it created huge cities that are right now housing tens of millions of people what happened with radio with radio at the beginning all the money were going into Towers into cables into radio sets I don't know if

13. 6:21

    you guys have experienced long waves short waves now we have dab and you know everything else but what is the business model that that is sustaining radio right now it's advertising it's consumer spending now let's look at television television again Towers cables TV sets black and white then color right now TV set manufacturers are selling their Hardware their TV sets at cost and they

14. 6:51

    make money by pre-installing Netflix Disney plus and TV channel it is all powered by cons consumer spending now let's look at mobile and this is more recent I'm sure that most of you would remember how much rage everywhere we were reading about the networks being built that was a you know uh what was it WAP then there was age then there was first generation second generation third generation fourth generation and there were towers built and we had this handset manufacturers

15. 7:25

    like Nokia you know dominating the world but where is mobile right now and what is happening in Mobile when was the last time you read about a mobile network on the front page of any newspaper it's long forgotten everything that is happening in Mobile right now and all the money that is made in Mobile are practically made by Apple and Google and it's all happening in a mobile app space now my absolutely favorite and most relevant to all of us I'm sure is

16. 7:58

    internet I'll show my age but I remember '90s uh Cisco was the largest company in the world in 98 and 99 Sun Microsystems was huge Juniper Networks it was all about servers data centers and building out infrastructure do com bubble hit in year 2000 and this is a parallel that I think everyone's familiar with right because we're actually tracking adoption of web 3 against the internet and these are the

17. 8:31

    last numbers that were published but actually if you're looking at the actuals now we are pretty certain tracking about 1999 of Internet adoption what happened in the year 2000 anyone remembers Doom bubble and what happened in Doom bubble all of those infrastructure Investments went basically nowhere but there was a lot of capital on Sidelines and capital allocators and investors needed a new narrative and in early 2000s one very

18. 9:04

    important narrative was born which was consumer internet and guess what that is where pretty much all the money made on the internet were made not on the infrastructure investment but on consumer internet 2003 Google 2007 Facebook I'm not talking about gazillion of other companies that potentially have not survived but been required and absorbed by these big players but that's where all the returns came from now no

19. 9:36

    matter what industry you're looking at the summary is it always starts with infrastructure investment and then it kicks into consumer version of that industry and that what sustains it for the rest of its days and this is where the money are made now if we know that it is going to be consumer crypto and I hope that I've convinced you that there is no other way than going down that path then what are

20. 10:03

    the things that we know about it first it is definitely going to be on the mobile because if we want to get next billion people they are not going to be doing the stuff on desktop and laptops there are no billion people around the world that have decent desktop and laptop available to them the other thing that we know it is going to be a lot simpler ux and I'm calling it chainless because chain to chain chain to chain is

21. 10:30

    the biggest Boon to any user right now we have millions of users in sweat wallet it's very difficult for them to move from one chain to another the third thing is that success has to be defined through active users not tvl that is one of the most important thing for Founders because if you are building for the next billion people but your Target and success is tvl you're not going to be able to build for the next billion people why because as you start building

22. 11:01

    you realize that you can hit your tvl targets by making 10 phone calls to big whales what you're going to be building end up is what they're using right now just with high apy maybe with few tweaks on the user experience and that product that is useful to 10 whales is certainly not going to be the product that the next billion people would want to be able to uh would want to use so success has to be active users and I know that there are a lot of kind of arguments oh

23. 11:30

    my god there are so many Bots look this is a problem that we can easily solve but we just need to have a mindset to go for active users now last but not least we need to have really really good products and I believe that these products are all going to be around ownership money data access rwa and because we're here and because we realize the power of AI I do believe that a lot of this stuff is going to be powered by AI or at least built using AI

24. 12:06

    now this is basically a framework that we use internally so what is consumer crypto build a a mobile really simple ux with Target to bring in next billion people and mass market products not another derivative of a derivative of a derivative trading but something that the next billion people will be able to understand and be attracted to now we we and I mean we as sweat and sweat wallet we cover these two areas extremely well we understand how to build for mobile we

25. 12:38

    understand how to bring in users but without near we will never be able to deliver this simple ux chainless ux and build those Mass market products now what do we need in order for that to happen and these are the four elements that are basically my interpretation my apologies if you guys are from near I'm potentially using slightly different words for it but there are four fundamental things that power this future one is shorted architecture we've heard today that 200 millisecond blocks

26. 13:12

    amazing high throughput no cap on growth and low transaction costs next is chain signatures NPC and fast o this means that we are able to have one front end for any chain and and every chain and to use one key to manage all of those actions and one of my favorites given the fact that we're aiming for next billion people we will be able to autocreate accounts on any chain in order to facilitate users actions if they haven't yet jumped onto that

27. 13:48

    chain number three is intense basic change and Bridge you've seen presentation from Alex shenko this is really really exciting because if you're talking about swapping keys not assets that's incredibly easier but also a lot safer than the current architectures used for swaps it makes it AI agent ready and also it enables for us and our users an opportunity to pay any fees on any chain with a token that user has rather than having to run around and

28. 14:22

    have dozens of different gas tokens and last but not least is multi-chain one click connect that is my absolutely favorite not a lot of people in near ecosystem are talking about it but because we are thinking about end user experience it is extremely important because it's like magic I press a button the dab opens and I am already connected and logged in I don't need to click connect wallet go through seven steps use wallet connect and then I can actually perform an action on the

29. 14:52

    appap when D loads I can do whatever I want straight away and confirm transaction in my wallet and it will work both ways from wallets to daps and from daps to wallets so bringing all of this together will enable the future that I'm really excited about and that's the only slide about us so sweat wallet we're building one wallet where you'll be able to hold assets on absolutely any chain you will be able to manage these assets and take

30. 15:23

    any action on them using one key and one key only for the next billion people that is absolutely vital nobody is going to be running around with dozens of accounts and huge number of seat phrases and last but not least at least our users cannot comprehend and understand why if they are doing one transaction they need to have BNB another transaction they need to have eth and that transaction they need to have avax

31. 15:49

    this is not something that you want to educate our users for so we want to make sure that our users can pay everything with sweat and I can tell you it's not just the next billion people but it is people around here they are excited when I tell them that you can pay your fees on any chain literally with your feet thank you very much