Ethereum Foundation DevCon 6 - UX & Design Track, 11 Nov 2022

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From YouTube: Tokenizing Brands : 3 Key Learnings

Description

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https://archive.devcon.org/archive/watch/6/tokenizing-brands-3-key-learnings/index

Tokens are a unique way to generate Brand – Users connections. There is a world in terms of what users can do with tokens, and leading Brands such as La Praire, Hugo Boss are already exploring this world with us. Connections are the key. We have realized that the value of the token comes from connections, together with goods and services. It’s clear for us now that tokens are the integration point for web3 and token technology should be built around this concept.

Speaker(s): Weiwu Zhang
Skill level: Intermediate
Track: UX & Design
Keywords: blockchain,tokens,web3

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Learn more about devcon: https://www.devcon.org/
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Devcon is the Ethereum conference for developers, researchers, thinkers, and makers.
Devcon 6 was held in Bogotá, Colombia on Oct 11 - 14, 2022.
Devcon is organized and presented by the Ethereum Foundation, with the support of our sponsors. To find out more, please visit https://ethereum.foundation/

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Founder and CTO of smart token Labs, we are a team about 40 people and we have been working in Organization for four years and in last two years we have witnessed a lot of brands and take their huge interest in in the nft and blockchain space, and we helped many of them to tokenize their brands, and this is our learning.

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First, there's a strong demand for brand Brands to connect their audience with an nft there's, a difference between a brand lover and a holder of brand token. That gives the brand access to Their audience a lot of their users to access ecosystem and put a value into their loyalty.

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But there are two barriers: first wallet, not many people in the Brand's audience user base have wallet and is not easy to get it there.

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The second signature, so a lot of users hesitate to sign any message or transaction when they are holding brand tokens and understandably so, I'm going to talk about three cases where we helped friends to tokenize and I will explain how we overcome or amended these barriers and share our learnings.

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So first library is a Switzerland luxury. Skin care brand, it's the world number one and their user base a high net worth people with a love for art, so they do art, exhibition, art, review, art auction and that's basically their Market position. What we did for them is a space beyond an ft project for Everlasting digital art.

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However, these are not traditional. These are not technical audience. These are traditional art buyers and you can imagine, most of them never had a wallet before, and the format of the sales is quite traditional as well. You can imagine a joint Hall with a rotating light and display of digital art moving slowly and people holding champagne in their hand, and sales was done in that moment, and you can understand that this is not a perfect moment to teach them how to install a wallet and get the seed phrase.

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So what we did for them is we allowed them to purchase the art with their credit card and we will send them an email with a magic link that contains the cryptographic. Information needed to later prove their ownership of this digital art if they need to use that with a smart contract or debt.

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So after the sales, the buyers can set up their wallet in a later time, and this sales was attached was linked with their email address and they need to obtain the email address. Attestation I'll link that, with their ethereum address and from that moment on depths and smart contracts, will recognize them as the legit owner of this digital art.

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This we effectively have pushed the moment of install wallet to a much later date, therefore smooth out the onboarding process, and that's the first example. The second one is actually the step count and the target audience. Is everybody in this room this this time? Understandably, our audience is more sophisticated and most most of us have a wallet, but we still find it beneficial to smooth out the sales process, use a testation, and there are a user experience improvements using this technology.

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So we did permissionless perk, which is um project where third-party websites can recognize devkin ticket holders and give them special perks and offers.

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This is done by sending an email to every ticket buyer with a ticket a test station magic link, if you click that link the cryptography information to prove that your ticket holder is stored in your browser and later when you access third-party websites, this information will be working to prove that you are ticket holder and again. If you should sign a message, sign a message or do a blockchain transaction.

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The link, the Republic information, will be linked with your wallet that can be configured later Sage. Therefore, users can buy Dev contact with credit card without worrying about wallet and get a wallet set up later.

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Beautiful thing about this design is Devcon does not have to verify the ownership. It's not like Google, for example, every time when you use Google, ID Google has to be online and you connect to them. Devcon can be offline when you're using permissionless perks.

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So that's um what we did for devcom and the last example is Shopify, where we provide worked on the VIP shopping experience via nft. The idea is, if you hold an ft, you can access gated content, special discount or special offers on the Shopify website.

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What we discovered is user hesitate to connect to their wallet on e-commerce website, so we give them our product brand connector, which allows users the option that they can be brought to a safe website, connect to the web token to their wallet, choose which token to use in the shopping process and the proof will be sent back to the shopping website for the shopping experience, and this allows us to allows users to not having to expose their wallet address to the Shopify websites and the users will not have to sign a message on the Shopify website.

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So these are the three projects we did. That I want to share with you today and, if You observe all these, and you will notice that all these projects about how websites can interact with token holders through tokens and all the technical details, such as wallet connection and signature, are just infrastructure to support this happening and in terms of user user experience, they are actually the hurdles.

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So that brings me that that brings me to this point that we are working on the infrastructure to support use of token and websites, but there is a much bigger infrastructure issue at play. That is today's web 3 websites lack the trust anchors now before I explain the trust anchors. Let me ask a question.

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We know today that web true websites are built around centralized points such as Facebook, Google and Apple, and we know that web 3 is decentralized web, which does not depend on this centralized services, and we have been building depths for that future, but which depth we built today can replace Google and Facebook and Apple to provide these essential internet Central. Services I will elaborate this within with the example.

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So suppose you are buying the ticket from movie theater. Let's say the minions: you want you go to movie theater login, you probably will log in with Google ID, you probably will pay with Google pay or Apple pay. Once you've got movie ticket, it can be saved into your Apple wallet and once you finish purchase you might want to share it on Facebook or you might want to add it in your Google calendar or you might want to get a Google map pointer.

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This is a typical web 3 web 2 experience. This is very smooth in five minutes. You use the five or six Central Services provided by webtool by Google, Facebook and Apple. These are not just Central Services. These are trust anchors, because the movie theater website cannot do this by themselves. Even they have the software and code.

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They cannot provide Google at ID login, even if they have the login code they would have to. If they don't use it, they would have to end up with user management password. They cannot share it on your shared movie purchase to our friends, because you are not entrusting them.

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The movie theater to manage your friendship is not because they don't have the code, they can have open source social media, but they they couldn't. They don't have that trust anchor to do so.

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So today's web 2 experience was enabled much by these trust bankers and today's customers are already used to that. They will not go back, they will expect no less from web free. But where are the things that can serve at this function? Web3 and for tabs will not do that. We've been building that, but that's not for it three reasons.

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First user demand convenience users don't like to go to a third party website to go to. While they are shopping, go to a Dev website prove they have the token and come back to the shopping. Similarly, in web 2, they don't want to go to PayPal, finalize payment and go back to the checkout process.

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Second, depth suffer from the same security and availability issue. Debts are just normal websites, they are not secured by blockchain consensus. Blockchain, smart contracts are Debs are not, they are repeatedly hacked and they are sometimes not available.

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Today you will go to aav Joy ether and then go to the movie theater and pay it. It's not integrated process. Smart contracts are composable. Debts are not so there's three reasons: steps couldn't do the trust anchor role. Can it be tokens?

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We have been working on tokenization for three for four years and we have seen a lot of cases and I'm going to share my experience with you on token working and the trust anchor, but let's hold on for a moment to think about it. Today, everything is based on the existence of the central trust anchors. It's actually quite hard to imagine web3 without them it's hard to imagine what will the trust anchor be? If we don't have Google, will the Google login the Google ID be an identity token?

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Will the Google Calendar become a calendar item token, that is in user's wallet?

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Will the Friendship the connections you have on Facebook be tokens it's difficult to have a picture of the web 3 with new trust anchors? We don't know what they will exactly look like and how will they exactly work, but we figured out four requirements for token to act as a trust anchor, and these four requirements are trust. Interoperability, privacy and security happened to be tips. For you to remember tips.

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Trust means that users should not trust websites as much as they trust their tokens again. Take the movie ticket, for example. If you have nft, let's see the minions and if you want to buy discount ticket with that, you don't want you, don't you won't trust the movie theater website as much as you trust, your meaning token, you don't want to connect your token. There connect your wallet and do any transaction. The website might be insecure and steal your meaning, so trust anchor should be on tokens not on websites that uses tokens and second interoperability.

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That means you should not depend on websites to have the correct code. For your token, so you don't want to go to a website which tells you sorry. We cannot serve you because we only recognize version. Two of the minion token. You have version three.

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You don't want to wait for them to upgrade or you don't want them to um if you have new token takes them. The next cycle to understand your new token, therefore token and the website code should be separate and into operate more in between, and then we have privacy, which simply means that the website should not know everything in your wallet.

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It's not okay. If you go to movie theater and now they know that how much ether you have or everything you have and finally there's security, meaning that you cannot trust you cannot dedicate transactions to the websites. Let's say you have a Dominion token. Let's say you can lend it to a friend to get Discount Ticket.

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You don't want the movie theater to do the landing, because how do you know the movie? Theater website is doing it correctly and not taking away your your money or your your minion token, so the transaction should be done by secure code.

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That comes with token, and with these four requirements satisfied, we develop a our core technology called token script, which is enabling technology for token to work as trust anchor. I, don't have um too much time to go into technical details, but I will just discuss. I will explain the design principles and the technical characteristics of token script.

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So first, it is strongly bound to contracts, meaning that the users should trust the token token script as much as they trust contracts. They are run. They are written by the same team and there's cryptographic proof about their linkage and second token, script is not executed on blockchain. They are executed used in the user's wallet in user's agent, for example, Alpha wallet, which is our wallet product, leading open source wallet with more than 700 Fox.

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It has a runtime environment for token script, so that token code can run the wallet and interact with the website, and then it is composable, meaning that you can use multiple tokens in one web process, which is not often seen in today's steps. So you can. You can use one token for payment, one token for Discount and- and you can use the you can you can get a movie ticket as a new token download it from the website into a wallet it's composable on the front.

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Not only on the in the Blind blockchain and finally, it has both UI and API, and this is a this is different than most tokenization solutions. So most organization Solutions today build tokens like API, for example, the graph you can inquire a token and get for example, which the the data of creation. For the token who is the current owner, but it's crucial for token to be a trust. Anchor is crucial that tokens have user interface.

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If you go to a movie theater website login as Google, you will hesitate if it doesn't display the Google logo or if the login box deviate from the Google experience.

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Similarly, for if you want to use the minion token on the movie website, token has to control the part of the UI that interacts with the website. So you see it's essential that token generate UI in a trusted environment, so um we have eight minutes left and um for my talk and then I have finished, sharing all my knowledge, but I want to pause here and then let all do a thought. Experiment.

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We have been living in the world enabled by blockchain Center points for so long. It's actually hard to imagine what internet could look like if we did not have to depend on the center points.

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For example, if you have a Tesla car, they have integration with Google with the with apple wallet. Tesla car key can be an apple wallet and you can send it to a friend if he wants to borrow your car. You do this on iOS as long as you're in the same ecosystem.

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This is the organization it's done in the iOS system. It's not down on the blockchain, but can you can do this now today, but can you flow to your Tesla car on the rental market by hours? Third same technology?

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You cannot do this today, because apple is not allowing it I, don't know why they probably don't see it profitable or probably it's too complicated, but you need Apple's permission to do this. What internet would have looked like if you didn't have to depend on Google to permit you I put permission to do this.

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You will be able to set up a rental market very easily as long as tokens support them and the Smart Talk Smart Car vendors will produce their own Smart Car tokens to allow this to happen. You can rent a market in Bogota or any sleep. City, you don't have to be a world leader to operate in rental market.

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That would that that is I'm not getting it. What is the license of the code base like? Is it 2.4, sarpash or something MIT license? Okay, um so our implementation is in a MIT license. So that's why we have uh that actually is right. Now it's embedded in Alpha wallet and it's not a standalone product. We were making a standard balloon product so right now, Alpha wallet has 700 Fox and most of them didn't tell me about it, because we allow MIT.

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Hello, yeah hello, how are you hey, I was going to ask: what do you think are the main barriers for tokenizing, traditional banking or Finance products such as portfolio purchases? And what do you think would be the position of traditional banking system towards this kind of Innovations? If.

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History is proven, true again they will be the last wave to be tokenized, so so they will be under a lot of pressure and eventually move their ass.

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Yes, how do we know which token providers can we trust, because.

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Oh, that's, that's we don't know the the thing is, um uh although token can be acted, although token is used at trust anchor to enable web search services that doesn't require users, trust them as much as token token itself needs to be trusted and the level it can be trusted is actually again free market competition.

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What did I say, for example, somebody wants.

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To download a better calendar, how would they know that this that this uh company uh isn't let's say a phishing scam and.

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I actually, don't know, I imagine that the wallet will will have a calendar integration. So if you enable wallet, calendar integration, the wallet will create a calendar token on your neck, on your behalf, in your name and then, but whether or not other, people will believe that you will actually realize your promise. If you sell your calendar item to other one that would require summer tests because some sort of form of hesitation lab you have reputation stuff like that. We're building these things but I, don't know how it would look high in the end yeah.

A

Well. Thank you. So much.

B

Thank you for the presentation.