foreign
[Music]
okay and now for our next talk on the
web 3 social layer web3 social the next
wave of innovation by Stoney kulichoff
stani is the founder and CEO of Ave
companies he was studying law at the
University of Helsinki when he first
began learning about smart contracts and
dust about the ethereum blockchain
network this led to an exploration of
how blockchain technology could impact
the traditional Financial system
please welcome Sony to the stage
[Applause]
Jim
um who is feeling good
nice
um yeah so I want to thank the ethereum
foundation for organizing uh Defcon it's
been very very busy week
um at least for me and probably for
everyone else there's been a lot of good
talks here and
um and it's the last day so you know the
the best talk is probably uh amongst
here too
um
um don't want to brag too much but so
okay today we're going to talk about
web3 social
um and as a next innovation
see if we get this yeah perfect so
something I want to talk about is that
um The Innovation for the past
um years or decades has grown quite
substantially and has accelerated so
um if you look at that for 100 years we
have Technologies for example like
telephone that has been invented or 100
years ago and it took decades to
actually adopt uh automobiles cars for
example took decades as well
um and more recently for example
um the television has got higher
acceleration and and also uh the
infrastructure underneath the internet
the the computer and what we've seen
different kinds of patterns is that the
more we get infrastructure The More We
Get compounding
acceleration of innovation and this is
one of the reasons for why for example
the internet infrastructure has grown
substantially
um
and if we look into the um
I guess
oh it's oh okay cool yeah perfect if you
look into the actually uh recent
Innovation what is happening in Internet
um ecosystem is that we have a lot of
adoption uh in a very high acceleration
uh curve uh on line so what it means
that when you have already a
complete infrastructure it's very easy
to innovate and have this compounding
effect and recently uh we've seen for
example
um uh tiktok being one of the
uh recent examples of of how we had a
scale adoption from uh zero users to one
billion users in uh about roughly um
seven years since um the beginning
um and
I don't know where is this thing I need
to point out what should I point out
okay oh cool yeah so yeah so what I want
to say is that the internet adoption
um is global so we're dealing with
technologies that are affecting everyone
every single
um human in the planet and there is a
large-scale empowerment
[Music]
that is related to not only the internet
but what we're doing here and the um
ethereum community and across across the
blockchain space
um I mean even though with high amount
of adoption and penetration there are
still places where in some regions the
adoption of the Internet isn't really in
its fullest at the moment so for example
if you look at the graph of uh sub uh
the sub-Saharan Africa we have adoption
of roughly 30 of population using the
internet itself Colombia is at 70 so
it's very Regional and and there's still
places where we need infrastructure to
to innovate
um but regardless of the infrastructure
um things are going to change quite a
lot in the future
so the way I see how Innovation Works
and specifically
um this particular chart the kind of
like I I would say like a circle of
different components
um demonstrates uh what Innovation is
for me like how I approach Innovation
um and what are the ingredients to come
up with a product and also get that
product into a growth cycle so obviously
you have the opportunity there so
basically you recognize a a problem or
an opportunity to solve having knowledge
about the problem you're trying to solve
expectations understanding what people
actually need the talent the team
members that you're building with and
they actually craft and the craft is
what I call the the product itself
obviously there's things like funding
related and also uh road now what's
super exciting about uh web3 and
innovation in web 3 is that we rely on
open networks and open networks they
create accessibility so they create
access for everyone here today for
example to contribute not only what
we're building in the other team
but any project in the ecosystem because
they're relying in the open network idea
and open source technology
so yeah and one important component also
is the the the culture aspect so culture
equals for me also community so when you
build open networks open infrastructures
uh you're actually in a different kind
of a dynamic setting then as if you will
be building
a product within a company or a service
for example this means that when you
have accessibility people across
globally they need to find a way to
connect share ideas and and build
actually different kinds of
Concepts and an actual Community around
a product because accessibility also
means that the users are the ones that
are part of the
um Innovation flywheel and in in an
important part actually of making that
Innovation
um happen
um one important thing I have realized
in the past that web3 is something
that's going to touch everywhere so it's
not only specifically related to one
particular area
to solve and we've seen obviously with
how web3 has borne so Bitcoin tried to
solve the idea of how we can actually
transfer value between humans across
globally without intermediaries and
create a public money as public goods
and obviously with the innovation of
ethereum and the ethereum virtual
machine you could actually create
programmable applications on the
blockchain because we try to solve
financial
problems and opportunities in the
beginning we started to actually
continue solving those
within our community and that's where
DFI has been very successful so but to
get actually beyond what we have today
uh in our community and the user base we
actually need something more
um done for example the essential as
Finance
um and just an example is that these
interests Finance
um is uh incredible Innovation what our
space has been able to uh create it
means that every one of us has
accessibility uh to a fair transparent
market across globally
um and decent just Finance doesn't look
into your background what you are doing
when you're actually participating in
these markets or when you're building
ah part of the community but to get into
more bigger adoption we need to realize
that we have to go beyond Financial
applications and find more things that
solve uh human problems and
um feed their needs as well
and I personally with my team uh think
that social is the next uh or at least
the killer app for web tree and the
reason is that we currently have almost
5 billion users on social media and it's
growing constantly
we also have
equal amount of almost equal amount of
internet users
um social media users then we have
Internet users so there's a big
opportunity in social media
and we also see that it's Global
phenomena and effectively if you look at
this chart here we see a lot of social
media usage in Southern America but also
in Asia compared to for example the
regions of Europe and North America
and we could actually ask ourselves why
do we have social media why their why
social media is important
um in in the first place
so what I have been looking into is that
there's definitely a need for people to
connect with each other uh for
particular different reasons and there's
also need for create so humans has have
always had the
um idea of being a Creator so here's a
picture of one of the oldest findings of
creativity
um
back in a long long time ago
um so um social media it allows us to
connect with people uh one-on-one basis
create relationships and also in groups
coming together and forming a community
um on topics that we care about care
about it and social media is very vital
to our lives because with internet and
being able to connect with each other we
are able to learn from each other
directly from the people
rather than example from institutions
we also have the sense of belonging when
we can create communities and part of
the adoption also is that we can
actually do this connectivity in scale
across the globe
and I really love this particular slide
because
um there is this concept of Six Degrees
of Separation uh which means that we all
people here
um and everywhere are connected to each
other across uh six hops of uh friends
of friends so
um to any person
um
in the um uh planet and there's actually
recent studies as well
um that this hope distance actually is
becoming even more narrow and we see
that it's roughly 4.7 degrees so almost
every fifth person you are connected
with in the planet and part of that is
because the connectivity is more easier
we have access to Internet we can
connect to anyone any person in the
planet on the topics that are
interesting uh for us
so what happens when we are actually
using social media is that we create
Social Capital social capital is
something we all have regardless of the
technology so we have social capital
when we are forming friendships uh when
we are connecting with people when we
are sharing ideas uh or sharing news
the big problem at the moment is that we
create a lot of this social capital
actually online and we're using uh
platforms such as the bigger social
media platforms where we are creating
this networks and connectivity and at
the same time we're publishing uh
content and these platforms are designed
um
to thrive as a as a basic platform
instead of actually
striving to preserve your social capital
or aligned with your own ideas
so what I see is that the web to social
is at the moment a zero-sum game for
many participants that create uh social
capital
and one of the issues is that all of the
users are actually locked in a
particular platform so you can't
actually take your social capital and do
a digital exit and transfer transport it
to a a new platform or a new venue where
you might find uh interesting ways to
connect with your peers and share ideas
Traders at the current state lack of
distribution and for the same reasons
you are locked in into these particular
platforms and also it's very hard to
actually monetize Beyond
um sharing the traffic of what you're
getting to maybe your home page
and for the developers there is actually
lack of freedom to come and and build
and innovate
um ways to how to connect with people
innovate on the experiences as well and
create new applications and and new
Networks
so I believe that web2 social is right
for disruption at the moment and I think
pep3 social is something that creates
the positive some value so it builds the
value for the users and it builds builds
the value for the community
and what I want to introduce here is the
web free social layer the components
that are actually and the ingredients
that bring that
bring these benefits for for all those
three parties the users the creators and
also the Developers
so why web3 is a game changer especially
in the social space is because the
creators are getting ownership of their
content distribution so you as a Creator
can actually decide how you uh
distribute content to your audience you
also own that relationship between you
and your peers and it's not locked into
a particular platform and because you're
not logged into a particular platform as
a user you have the choice to actually
select the experiences and the
algorithms that serve you the most and
are aligned with you the most
and for developers it means also when
all of the web3 is built by on top of
the open networks you have the
accessibility to improve these networks
and actually develop them further so you
have access to develop the networks
and web3 space I mean it's still growing
quite a lot there's more investments in
the region we also have locally here in
Colombia 6.1 percent are owning
um cryptocurrency
and we also see here in Colombia that
it's one of the countries that are
getting
um accelerated adoption at the moment
including uh some of these countries in
Asia like Vietnam also India
turkey and and amongst others so we're
uh in this perspective we're in the
right place to talk about
web3 as a
an open networks and and how it could we
could build them further
so we see web3 social has a green field
of opportunity
there are ingredients that are very
valuable when you build web tree social
so the networks must be open meaning
that anyone can actually compute on the
data that is on web3 social can actually
use these components smart contract
libraries and also take what is already
existing improve it and make it
available to people
um
and also one key point is the
decentralization so what makes web3
social very valuable is the architecture
and the architecture is where you as a
user uh owned your profile on chain and
you own your social graph and
connectivity which means that you own
your social capital
and here's the social layer where
individuals they have their identity you
have social verification when you are
connecting with the peers
and for the groups uh what you can do is
that you have community-owned interest
graphs open algorithms so when we take
the base layer and give the ownership to
the users and
what it allows us to do is that first
time ever anyone can actually build new
algorithms and these algorithms do not
need to be black boxes they can actually
be transparent algorithms where
developers are explaining what kind of
algorithm and what data points that
algorithm is using and that brings
alignment between developers the users
and the communities
and for creators it means that actually
when you own your distribution Channel
it also unlocks your you a new ways of
actually
creating content and creating
experiences based on the web3 social
footprint
and also monetization is key part so
monetization is and financialization is
something that is part of the web tree
value proposition and with with the idea
of opening the identity at the same time
it means that
um you can actually own the way you
monetize and you don't have to be
relying on the platforms but actually
find a venue with your social graph and
with your profile and actually
distribute the content and monetize the
way you want
so web3 social
um it unlocks the power of creativity
connections and it brings more
Innovation so what we did with financial
applications we can actually do the same
for non-financial applications and the
reason why it's important for us is that
this is this is the path how we can
bring more users into the space
it means that
um people who don't necessarily have
that Financial Capital but they're rich
on Social Capital can actually have
their ownership of that and enter into
the space and use non-financial
applications and also generate value for
them and what's interesting about social
capital compared to financial capital is
that
Financial Capital you can spend but
social capital is something that you can
carry through your whole life
and this is why we need actually people
to come
uh to the web tree space to also
non-financial applications and building
more uh utility
so one big question for us is that
um who will build this new generation
social media applications
and we have a perfect answer for this
one
it's you
since you are here at Devcon and it's a
developer conference I'm pretty sure
that there are people here that can take
the opportunity and build some very
interesting applications and use cases
and Empower
um the users and empower the the the
creators and other developers and even
create social media applications that
have better values transparency and are
aligned with with different user bases
as well
last thing is that if you don't have a
lens profile yet you can scan this QR
code
and later you can claim a lens profile
and you can actually test drive web3
social
um as well
thank you everyone
[Applause]