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Jesse Walden

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2021-03-23
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2021-03-23
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  1. “Are a number of NFT thought pieces out there. There have been thousands of them written over the last couple weeks. I'll shamelessly call out one that I wrote, which is titled NFTs Make the Internet Ownable. And it's all about why crypto media is becoming the, quote, port of entry for all internet media. I think Chris Dixon also wrote a really great post, a primer on NFTs, where he goes into some of the details of the market dynamics and where that might go. And then there's another really good primer by Linda Shea, which is also published on Mirror, the decentralized blogging platform I mentioned earlier. And that gives a sort of detailed view of a lot of the different categories of NFTs that are out there right now.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  2. “One I'll take away is NFTs are not a new idea for anyone who's been in the space for hot minutes since 2017 or back when I started MediaChain, my company in 2014, the same ideas were being explored then. I think the lesson here is stick with it because this stuff can happen in the flash of a pan. And suddenly the whole world knows and cares about NFTs. If you were there from the get-go and stuck with it, you're seeing a lot of the benefits of that.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  3. “Lesson for investors is we are entering a paradigm shift where everyone is an investor. You just have to be a public market expert to really have an edge on the stock market. Now every day people using social media platforms can have an edge in investing because they're closest to what's going to go viral and where the value is on social media.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  4. “While we're in the thick of a bull run for NFTs, and there will be a correction, this technology is here to stay. And I think it's going to happen fairly quickly because the incentives for people to participate are there and directly economic.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  5. “Do you want to come back to the hype cycle thing because it is going to end soon, and by the time this episode airs, who knows where we'll be, I think there's going to be a market correction and there's going to be a lot of people saying, I told you those ZNFTs were stupid. Who wants to own a digital asset when I can just copy paste the original? So I think really important to stress the idea that we've seen market cycles in crypto a number of times now after big run up in price, there's always a correction and there's always naysayers who come out of the woodwork saying, I told you that was dumb, but what you see if you stay in the space long enough is that the technology just gets better and better and better. There's sort of a Moore's law going on with crypto technology, and that goes for NFTs too. These market cycles are good in that they drive sticky fundamentals. Developers keep getting into the space. The technology keeps getting better. And the result is more experiences, more competition for consumers. I guess just reiterating the idea here that”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  6. “That's totally right. I think the analog here are cooperatives and mutuals. There have been tons of challenges with each of them and very few major success stories. Visa is another one that's little known, started as a sort of member-owned cooperative. But yet the benefit of smart contracts is you can now scale these things up without the cumbersome overhead of having to coordinate a zillion members in a legacy institution like a Vanguard.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  7. “Than their institutionally owned counterparts. And this is uniquely unlocked by the fact that crypto tokens enable us to distribute the value of ownership in the same way we distribute information, which is instantly to anyone anywhere in the world. So that's what's happening with NFTs and it's what's happening at the very foundation of the internet products and services we use every day.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  8. “Capture that value directly by selling to my audience. And you're starting to see the same idea of ownership as a keystone of new product experiences manifest in a number of other verticals as well. So I touched on DeFi earlier. DeFi art, there's a bunch of marketplaces. Uniswap is a good example of an exchange that's very similar to Coinbase. But the business model is take a fee on transactions just like Coinbase. But what's different about Uniswap is what's done with that fee. Instead of it going to shareholders, the fee is distributed directly to the users who put liquidity into the marketplace and bootstrap the network effects of the platform, which again is a very strong incentive for users to join and help grow the platform. The ownership economy thesis is that platforms that are built, operated, and owned by their users can grow to be much bigger, much faster.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  9. “Sure. So the ownership economy is this broader thesis that the next generation of internet platforms are going to be built, operated, and owned by their users. This idea is what's at the core of the success of Bitcoin and Ethereum to date, both of which are multi-billion dollar networks, where there is no company. There's just independent users all over the world, many of whom were developers and technologists who in the early days built the network, operated it, ran the mining rigs, and as a result earned an ownership stake in the network for doing so, which was their incentive to build it and operate in the first place. And that same economic model is now starting to sort of cross the chasm from developers and technologists to consumers. And NFTs are a really good example of this where now creators and collectors or their fans are realizing, hey, I can own a piece of the internet value that I create.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  10. “Yep, what I would say is it's probably even more likely that Twitter and all social media platforms just integrate this functionality natively so you don't have to think about where you're minting as a separate action from posting. It's just the default.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  11. “We will get to a point where every photo you take on your iPhone enters the world as an NFT. Every piece of media that's created will be registered on the blockchain to you as the creator. And that gives you an option on it becoming socially valuable and as a result, financially valuable in the future. That's what I mean is right now we have files on our phone, files on our computer. In the future, all files will be incepted on the blockchain as NFTs.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  12. “I was reading a headline this morning that Taco Bell minted a series of NFT collectibles. To be honest, I don't know the details beyond that headline, but they're definitely experimenting. We know that digital goods, not NFTs, but just digital goods generally are multi-billion dollar marketplace in virtual worlds like Fortnite, Robox, and others. And there are legacy brands playing there where, for example, you have fashion designers creating skins that you can put on your Fortnite character and so on. I think what we'll start to see, I think these brands will recognize if you give your customers true digital ownership where they can own digital assets in the same way they own a Gucci purse or a Gucci outfit that can be resold, that there will be actually much more consumption that takes place because property rights are the foundation for a functioning market economy, right?”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  13. “Right now, that friction means the digital native world is just going to move out of 10x faster pace than the physical world.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  14. “In the full span of time, absolutely. I don't think that's going to happen anytime soon. Reason being, you know, the physical world has endpoints that are not connected to the blockchain. Sure, you can tokenize a physical painting and say, hey, this token represents that physical painting. And I can buy that token from you, but how do I know with certainty that I am now the true owner of that painting? There's still some connection to the physical world that has to be worked out. And now you're in the world of lawyers and traditional legal contracts. There's this kind of dissonance between smart contracts and the idea that you can enforce rules as code. You can express ownership as code. There's dissonance between that and the way rules are enforced in the physical world, which is through the legacy legal system. In the full span of time, I think the legacy legal system will come to interoperate with smart contracts on the blockchain.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  15. “The list of NFT owners, which is publicly accessible on the blockchain, and saying, hey, if you own one of my NFTs, you can join a private group chat with me. So access to the creator is another sort of interesting experiment. There's just so much happening and all of this is moving in a lightning clip. It's really hard for me to keep up, even though I'm knee deep in it.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  16. “Collectible. So beanie babies, but digital age. So here's another one. I talked to an artist manager, a friend of mine from the music days. They just did a big drop on Nifty Gateway, which is where a lot of the high value artwork is selling. But they recognize the fact that on Nifty Gateway, where work is selling for hundreds of thousands of dollars, not all their fans can participate. What they did is they decided to mint a series of works. They sold some of the series and they took the others and they fractionalized ownership of them. So they took a non-fungible one of one and turned it into fungible tokens. This is known in the finance world as securitization. And then they gave the fractional ownership to the fans for free, just gave it away and said, hey, now you own a piece of this work, which is interesting because it's a strong loyalty or alignment incentive. And you now feel like you're part of the club. Another version of the same idea is people taking”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  17. “Then outside of the world of art and essays, there's collectibles, right? There's Top Shot, which is doing $200 million in volume the last 30 days. And that's just taking basketball cards. I used to be a collector as a kid, so it totally resonates with me and making them digital. And by doing so, making them a whole lot more engaging and interactive. And again, like because there's tons of experiences getting built around them, people building fantasy leagues around the assets people are collecting. So that's another category. And there's also more crypto native versions of these collectibles. So instead of the NBA, there's stuff like Crypto Punks, which are actually the first back in 2017. They were the first crypto collectible. These are little avatars, which are limited in series. And there's different types. Some are more valuable than others. There's crypto zombies. But essentially, the behavior is you want to own a piece of the set of this limited edition.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  18. “That nobody's covering in the mainstream media. You can now crowdfund get people from all over the world to send some crypto into Mirror, put a bounty out to get the journalist to write the piece, and in return for your patronage of making that work happen, you get a share of the NFT that represents that piece. And again, what is the value in owning an essay? Well, imagine Mark Andreessen, it's time to build this canonical essay. Someone might want to be the proud owner of that artifact of history. That's kind of interesting experiment where you're marrying crowdfunding to NFT ownership. And I think that concept will be generalized. It'll go beyond just essays, but potentially all kinds of media on the internet can be crowdfunded and where the crowdfunders actually own a stake in the success of the work that's produced on the back of it. So again, it's like Kickstarter, Patreon, but with this plus being you actually own a piece of what you help to create.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  19. “There's so much happening. And so let me preface first by saying we're definitely in a hype cycle for NFTs, right? This is classic Carlota Perez Technology Financial Hype Cycles where the markets for these things have exploded really fast and there's going to be a correction. That said, the technology and the utility of this technology is very real and developers are going to keep developing it regardless of what the markets do. I'll start with that. And in terms of interesting experiments, there's just been an explosion of them. at variant funder investors in a platform called Mirror, which is a community-owned blogging platform. So think of like Medium or Substack, but where the users actually own the platform. And what they've done is they've enabled writers to tokenize their essays as NFTs. There's a twist, which is they've then enabled writers to crowdfund ownership of their essay as an NFT. So in effect, say you want to see an investigative journalist piece done on some esoteric topic.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  20. “That's right. One other thing I'll add to this is in the Web2 world, I think there's a lot of things that haven't been built because VCs wouldn't fund them because it's like, well, hey, if you're going to compete with Twitter, you're going to get crushed and we're not going to fund that. One other interesting property of crypto that's sort of adjacent to what's happening with NFTs is the ability to pull value very easily, right? Like you can send value in the same way you send an email. What you're going to see is people funding the experiments or the experiences that they want around the media that they own. There's going to be, I think, a very long tail of consumer media applications built on top of this Universal Media Library of NFTs because the funding for them to exist will come from the people who want them to exist as opposed to having to come from BCs. And critical to note, these may be very long tail and they may not be huge businesses.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  21. “Functionality to buy and sell there as well. But I think this idea of there being this universal media library means that developers can build on top of this universal media library and by default the creators are there. What that means is that we're going to see a lot more experimentation around the types of social media experiences that we can play with. Right now, Twitter is the only company that can play with the feed of content that we see on Twitter and likewise for Facebook and Instagram. When you unbundle the content from the platform, anyone can sort of experiment with new ways to organize that information and new ways to present it, new ways for us to consume it. This question, where are the creators going to be? They're going to be everywhere. I think the better question is where are the consumers going to be? And I think what the answer may be that it's going to be a lot more fragmented. There's going to be a lot more competition for consumer eyeballs and ultimately more competition for consumers is a really good thing for the internet.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  22. “A little too early to call, but I'll offer some thoughts. So, first off, is it important to come back to this idea touched on earlier where Web2 social platforms, they bundle your identity with your media and the distribution. NFTs undo that bundle. So now the media lives on the blockchain and any developer can build an interface to that media on top. A good analogy or a good way to think about it is the blockchain is becoming this universal media library, on top of which developers are building all kinds of new applications and services. So there are marketplaces like OpenSea, for example, looks at the blockchain and aggregates all of the media and puts it up for sale, eBay style, and you can bid on any piece of media on the internet. And then separate, there's other marketplaces that are more focused on primary issuance like foundation. That's where artists come to mint their work and put it into the library. And there's also marketplace.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  23. “The creator's public address. So, what you see happening often is as creators mint on these platforms, they say, this is my public key. You can verify that the work is truly mine and authentic.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  24. “Yeah, exactly right. When you make a transaction in Bitcoin or Ethereum or any other cryptocurrency, what you're actually doing is you're signing a message with your keys and you're saying, I approved this message, please process it. And you send that message off to the blockchain. And that message then gets put into a block. And now you have one less Bitcoin and I have one more. And that transaction can be attributed back to you because your signatures on it, your cryptographic signature. The same is true of an NFT when you mint an NFT. You're signing a message that says, here's my file, here's the hash of the file, it's mine, I'm signing it with my key, and that lives on the blockchain for anyone else to see. So it's very much like painters signing their work in the corner. You can verify it's theirs by looking up their signature and comparing if it's authentic. That can now all be done sort of programmatically with cryptographic keys. So of course that mandates that you know”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  25. “And by and large, this has been happening on Ethereum, the Ethereum blockchain. And that unique ID is what is being bought, sold, traded. The unique ID is the token, and that unique ID has certain metadata hooked to it. The metadata could include who made it, what it's about. You can put anything in there. A good example of this is the first block in the Bitcoin blockchain. Satoshi put some metadata in, which was the headline, Chancellor on the brink of bailout for banks. That's metadata in the first Bitcoin block. Similarly, you can put arbitrary metadata into the blockchain and associate it with this unique ID that is the file that you're uploading.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  26. “Earlier, I said NFT is like a file that you upload to the blockchain. Now is an important opportunity to say that's not actually what's going on. What's actually happening in most cases is you're taking what's called a hash of your file. A hash is a fingerprint of the file. And that hash is just a string of 24 characters or so. And that's what lives on the blockchain. So that's a very small piece of data. It's quite expensive to put data on chain. That hash then points to the file somewhere else. Where is that? Well, it could live in a decentralized storage network like RWEV. It's a blockchain specifically built for file storage where you can look up the file based on its hash. The NFT on the blockchain is a pointer to the actual file, which can live elsewhere. It can be replicated infinitely. A good way to think about what's technically happening is you're creating a unique ID on the block.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  27. “Compounding really, really quickly. The same is going to happen with NFTs. So if DeFi applications are money Legos, and I think NFTs are like media Legos where royalties are one new application you can build on top of them, but another might be the ability to display your paintings or display your NFTs in a virtual world that some third party developer built. This is all going to move very quickly because any developer can permissionlessly remix these assets and bring them into new contexts.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  28. “In the world of DeFi or decentralized finance is that every application, every marketplace, whether it's exchanging tokens or borrowing and lending cryptocurrencies, these are open permissionless marketplaces that anyone can build on top of. And this concept will be familiar to anyone who is around in early Web 2 where you had developers building on top of the Twitter API or building on top of the Facebook API. Those were platforms which had a lot of users and if you wanted to get users for your app, you'd go and build on top of them. But of course, as those companies need to monetize, they shut off those APIs in crypto and in DeFi, you can build on top of any marketplace without fear of it getting shut down because these applications live on the blockchain. And as a result, we've seen what has come to be known as money Legos or developers stacking these building blocks on top of each other. And as a result, innovation”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  29. “That exists on a lot of NFT marketplaces where you can programmatically specify a royalty rate that goes back to the artist or even back to the original collector in any resale event that happens in the future. And again, because this is all specified as code, it's administered automatically by the blockchain on which the NFT lives. Those are royalty streams that are flowing consistently back to whomever they're due. That's a fundamentally new thing where in the legacy media world, you're very much dependent on all these third parties to collect your royalties for you and they all take a cut. So the artist is left with whatever fraction of the day. I think that's one early example of these assets taking on programmable utility for the creator, for the collector, but you're going to see all kinds of new interesting ideas that people will program into these assets. One very popular idea.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  30. “Vague idea that maybe in the future someone else will want to buy this. Maybe the creator becomes more popular. I have one of their early works. So this plus is an incentive to become a patron in the first place. So I think a lot of the incentive to participate in NFT marketplaces is the idea that one, you can support the creators whose work you admire, and that's no different from Web2, but there's a much stronger incentive to do so because you actually own something and you can benefit potentially from the resale of that ownership value.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  31. “That's right, yeah. And I sometimes refer to this idea as patronage plus. So on the internet today, you can be a patron of a creator using something like Patreon or Substack where you're paying a subscription to support their work. In a sense, you're renting access to whatever they put behind that paywall. What NFTs do is they allow for the content that the creator is making to be open to anyone, but allow for patrons who really want to support their work to do so. And this is the plus part of patronage plus do so with the benefit of potentially profiting in the future because when you buy an NFT, you actually own some digital property that can be transferred. You can't do that with your subscription to Substack or Patreon. But when you buy an NFT, you're buying digital property. Even if you don't plan to resell, there's this.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  32. “In being the owner of a popular idea, a popular image video or song. And I would argue that the value of an NFT is in fact directly correlated with the number of times the image, the video, the song has been shared. So the more viral it is, the more value there is in owning the original. And to date, I think empirically, that's what's driven the markets for NFTs to grow so quickly, a platform for our marketplace, for sewing NFTs sold NYNCAT, which is a famous original internet meme for $600,000 because that idea is so viral, it's such an important part of the internet consciousness someone wanted to be the owner of the canonical instance of it.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  33. “Important to note that owning the original may not be for everyone. Like you said, you're totally fine just listening to the song. But somewhere out there, there's a super fan who really wants to own the original, like the sort of infamous story of Martin Schrelly buying the one-of-one Wutang album for a million dollars. That's one example. There's also the example of art in museums. Anyone can go to the museum and see the painting for free, or you can look at a postcard of the painting or look it up in an art book. But someone wants to own the original painting. It's true that physical work is desirable because you can like put it up on your wall or whatever, but soon we're going to see experiences that allow you to showcase your collection anywhere on the internet where you get attribution for being the owner. So that little placard in the museum that shows here's the painting title, here's the owner was contributed by so-and-so. That's going to be everywhere on the internet. So there's social status involved.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  34. “All these new revenue streams or new royalty flows can be sort of programmatically administered in a transparent way. Compare that to the way copyright is administered for music today where it's very opaque and goes through 10 different middlemen. Now all of that is transparent.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  35. “You can bring your NFT to for anyone who's familiar with Bitcoin or any other cryptocurrency, this should be familiar because if you have Bitcoin in a wallet you control, you can take your Bitcoin and bring it to Coinbase or you can bring it to Binance or you can bring it to any other exchange. The same is true of an NFT. Once it's in your wallet, you can bring it to any third-party application. And so developers can build all kinds of new exciting experiences to attract you to come and bring your stuff there. What I think we might start to see that might resemble royalty or ad-based revenues that you have in Web2 is that you might see applications that pay some portion of the revenue that they're generating back to the NFT holder for the reuse of that asset in the context that they're building. Today, that doesn't exist by and large, but I think that's where we may be heading. And what's cool is”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  36. “Sort of have to suspend your disbelief and sort of break with the ad-based model of Web 2 in order to understand how this might come to pass in Web3 or crypto. So most platforms are ad-driven monetization, and there are certainly economies of scale there, right? Like you want to be on YouTube because they have the most advertisers and the most eyeballs, and you can make the most money there. NFTs enable you to monetize directly with your super fans. someone who really wants to patronize your work can do so and pay a ton of money to you directly and probably more money than you might ever make even with a billion views or listens on spotify that's the day one incentive for creators to try out this new marketplace but you have to remember these assets these nfts are permissionlessly programmable so because they live on the blockchain anyone can build an experience that”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  37. “Think that's the bottom line of it. Again, it's dependent on the idea that the creator, their identity, and their media can be discovered and interacted with independent of any third-party platform in the same way your Bitcoin is yours without having to depend on any third party to verify that.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  38. “And say, hey, here's my crypto address, and I'm publishing my work as an NFT. And suddenly the whole world can see, hey, that's their thing. And I can buy it directly from them. And we just saw Jack do that with a tweet. Jack was like, here's my original tweet. And here it is as an NFT and anyone can bid on it. That's an example of how all the complexity of rights management in music just kind of gets exploded by NFTs.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  39. “10 different artists. So separately there's also the rights to the underlying composition. Those are the publishing rights. So you have recording rights and publishing rights. And each of these rights have different rules in different countries and different organizational bodies that administer those royalties. And it's just this complicated mess. It's such a mess, in fact, that a platform like Spotify, which is global, often doesn't know who to pay royalties to for songs on their platform because the information is just not available. It's siloed in all these databases that are maintained nationally in different countries. It's been this major problem for artists to monetize directly because of the complexity of these various copyrights. Artists have had to depend on third parties, whether that's the royalty administration bodies or the platforms that distribute their music or both to get the money that's due to them. NFTs just kind of explode this whole model because now it's very easy for a creator to go into a”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  40. “What then happened, of course, is those platforms came to sort of dominate the relationship that creators have with their audiences. Oftentimes those platforms were at odds with the legacy distributors of media. And there's a whole saga there where the music industry is suing all these platforms. Spotify is the one who got it through. All that to say, the platforms today dominate that relationship. And NFTs, I think, are this new way of distributing media that inverts that relationship, that gives the creators and their audiences the means to correspond and transact directly with one another. So now getting back to your question on what are the implications for music? Well, it's interesting because music is probably the most complicated type of media when it comes to rights management. In music, there's rights to the song, a recording, and then a song can be recorded by”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  41. “Think before we get into all the complexities of music royalties. I'll first offer up just a bit of context as how I came to be involved in the music industry in the first place. And that was through piracy. Like a lot of teenagers and their early”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  42. “Pixels worth a thousand words. What I mean by that is one pixel differentiator in a JPEG makes that image unique from any other. Dollar bills in your wallet are fungible for one another, but an image, a video, or song, these are sort of like unique ideas that can come to be represented as unique tokens. So, what we're talking about is taking unique digital things and making them individually ownable on the internet for the first time without any third party. Fungible tokens benefit from blockchains because the technical properties of blockchains enforce their scarcity, the fixed apply of Bitcoin. Well, with NFTs, you can reduce that fixed supply to one of one.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source

  43. “Think a really simple way to define NFTs are as a file or a file type that lives on the blockchain. You have MP3s, you have JPEGs. These are files that live on your phone or your computer. NFTs are a new file type, a digital media file that lives on the blockchain. And that's technically not correct, but it's a good metaphor for what we're describing. The idea is when you upload a file to the blockchain, it becomes a token that can't be meddled with just like Bitcoin is a digital token that is provably yours independent of any third party. So in a nutshell, NFTs make it possible to own a piece of digital media in the same way that you are able to own a digital currency like Bitcoin.”

    2021-03-23 · Invest Like the Best · Jesse Walden - A Primer on NFTs - [Invest Like the Best, EP. 218] · IDENTIFIED FROM THE TRANSCRIPT · source