NFTs, Digital Property Rights,
Gaming and the Metaverse

5.3 BILLION INTERNET USERS

DATA AND THE NEW RULES OF COMPETITION

8DATA GRAVITY

9

DATA AND THE NETWORK EFFECT (AND YOU DON’T OWN)

YOU11

Rising Wealth Inequality

13

NON-FUNGIBLE TOKENS (NFTs)
Emerging segment in global game market: virtual tokens for digital scarcity, security and authenticity
FungibleNon-fungible

E.g., One US Dollar

E.g., Limited-edition postal
stampInterchangeable

Not interchangeable

Uniform (all are the same)

Distinct or unique

Divisible

Indivisible

Token Interfaces
ERC-20: fungible tokens. For ownership ofassets like currencies. Such tokens areuniform and interchangeable.

NFTs are notcryptocurrencies!

ERC-721: non-fungible tokens. For ownership ofthings. Such tokens are completely unique andnot interchangeable.

The cats you see on this page are from
CryptoKitties, an app by Dapper Labs thatis built on blockchain, similarly to Bitcoin
and Ethereum - but CryptoKitties uses NFTs
and is not a cryptocurrency.
NFTs allow CryptoKitties to be traded asunique items. Ownership is tracked
securely thanks to blockchain.

14OPEN DIGITAL ASSETS = YOUR DIGITAL PROPERTY =NFTs

USER STORYOTHERSVALUE
ASSET

Open digital assets

WHAT IS OPEN DIGITAL ASSETSUNIQUE FEATURES

Open digital assets is a kind of open source ofassets that users can add layers on top, e.g theirown story, value, asset to it.

NFTs have been growing signiﬁcantly in popularity
in recent years as it● provides a certiﬁcate of authenticity.
● registered it’s transaction on the blockchain
and provides a permanent and transparent
record of each purchase and proof ofownership.

PLATFORMS
Several emerging platforms including
OpenSea and WAX have been
providing marketplaces on which digital
goods can be oﬀered and sold. Anyone
can go online and verify who owns aspeciﬁc NFT, that can a speciﬁc piece ofdigital art from e.g Beeple

15

OPEN ASSETS VIEWED IN PHYSICAL TERMS

Change driver

Change Seats

Change color/ paint job

Change wheels

source: Ferrari Mythos

Open digital assets can be central to the experience. For example, diﬀerent services can be added to a car regardless of its manufacturer.
In this manner, the content becomes the platform.

WHAT ARE OPEN DIGITAL ASSETSUNIQUE FEATURES

Open digital assets are a type of open source
assets to which users can add their own layers, e.g
their personal story or customization.

NFTs have been growing signiﬁcantly in popularity
in recent years:● They serve as a certiﬁcate of authenticity● They require registered transactions on
blockchain
providingpermanentandtransparent records of each purchase andproof of ownership

PLATFORMS
Several emerging platforms including
Opensea and Wax have started
providing marketplaces for digital
goods. Due to their open nature,anyone is able to verify who owns aspeciﬁc NFT.

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INTEROPERABILITY = P2P OWNERSHIP ECONOMICS
Cross-application interoperability refers to the capacity of games to utilize a shared asset

TRADITIONAL CLOSED LOOP MODELDECENTRALIZED NETWORKS ENABLE INTEROPERABILITY

PROBLEM: As long as assets are bound to one server, their value hinges on asingle use case - the original game. The traditional centralized game modeltraps players by forcing them to sink costs in the platform.

SOLUTION: players are able to leverage assets that are stored on blockchain in
multiple games. Decentralized networks foster an open economy in whichassets are able to have uses cases from one game to another.

SILOED DATABASES CONFINE ASSETS TO THEIR NATIVE ECOSYSTEMA DECENTRALIZED MODEL FACILITATES XCH. BETWEEN GAME ECOSYSTEMS

Game A

Game BGAME ASEPARATE ASSET RECORDS
AND REGULATIONS
User transactions are merely license agreements: a right to use items within,(and only within) the context of the original game. This forms a closed loop
between player and developer.

GAME BGAME C

NFTs PROMISE TO SET THIS BOLD NEW STANDARD
FOR CROSS-APPLICATION SUPPORT
Assets are no longer constrained to a single ecosystem.
If a blockchain game shuts down, player assets are not lost. Players can still use
assets in other games and can continue to trade them on decentralized
marketplaces.

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EXAMPLE OF NFTSNFTs ARE A STORE OF CULTURE
NFTs capture the imagination, ideas and creativity that shape a digital collective born throughhuman achievement which has recently been best expressed with art nfts.

Beeple, The First Emoji. Part ofthe $69.3 million Everydays.
Beeple/Christie's

BITCOIN IS A STORE OF VALUE, NFTS IS A STORE OF CULTURE

There are so many people from
diﬀerent
backgrounds
andgenres coming in to share theirart, connect with people andpotentially build a career.

BLACKSNEAKERS, Holding Up The
Sun. Sold for: $7,088
BLACKSNEAKERS

The street art and countercultural styles are being used inNFTs.
Someﬁnance-crypto
people are may be considered as‘punks’.

Time: https://time.com/5947720/nft-art/ (March 22, 2021)

Shaylin Wallace, Stellar Goddess.
Current bid: $2,647
Shaylin WallaceYoung artists of color are not leftout, even though they may longbeen
marginalized
inthe“traditional” art world

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SERVICES FOR MERCHANTS (NFT’s)

NFTs/GAMING MOST FUNDED IN 2022

OVER 3.2+ BILLION GAMERS TODAY

Number of gamers in billions

Asia Paciﬁc

1.48 bgamers$71.4Brevenue

X2

North America

This represent more than double the revenue generated
in the second largest region, North America (2018)

1.82

1.82

1.96

2.08

2.21

2.47

2.60

2.73

The world

3.24 b2014

2015

2016

20172018

2019

2020

United States

66%

45%gamersof population

are females

There were about
3.24 billion video gamers
across the world in 2021

Gamers accounted for
66% of the general U.S.
population, up from58% just 5 years earlier

female gamers made up
45% of the U.S. gaming
population in 2018,
up from 38% in 2007

2021

The video gaming industry is huge and shows no signs of slowing down.
While there were about 2.3 billion video gamers across the world in
2019, this ﬁgure has now exceed 3.2 billion gamers.

Source: Statista.com 201913m+ are full time, 50m+ are part timeBILLION DOLLAR RENTAL MARKET
$50B+
2019

The global virtual goods market size
was valued over USD 50 billion in
2019. The rising popularity of
free-to-play games have encouraged
the purchase of virtual goods, thereby,
resultingina
rapid
forwardmomentum of the market.

Value: $170

$100B+

Value: $ 38k

Eve Online Revenant Supercarrier

2022

The market size was forecasted toreach a value over USD 100 billion by2022. The emerging popularity of
MMOG facilitated by social networking
websites has led to gamers spending aconsiderable amount of their time inthe game worlds.

Value: $ 6m

Value: $500

Value: $ 9k

Source: Adroit Market research

Value: $ 50k

CONTENT = ASSETS = SOCIAL IDENTIFIERS
Entertaining & Social

Bartle's taxonomy of player types provides a handy way to look at the diﬀerent motivations thatdrive engagement on gamiﬁed systems. In the 1990s, Dr Richard Bartle outlined 4 basic types ofgame players. These are the Achievers, the Socializers, the Explorers and the Killers.

KILLERS
harass, hack, cheat, heckle, troll
They see only one goal –victory atall costs. They seek to utilize
power-up items to cause distressand assert their dominance overother players.

SOCIALIZERS
help, share, comment, gift, greet
They seek a social experience.
Socializers are happy give various
social treasures that extend theirfriends lives, help to complete a
puzzle or beat a tricky boss.

Digital Property (NFTs)

Blockchain

Single player → Multiplayer

As players advance in power and prestige in these environments, they
accumulate virtual items that are valuable to other players, particularly newor lower level players. This is why gamers need blockchain:

ACHIEVERS
win, challenge, show oﬀ, compare
They want to share their successes
with everyone. They want otherpeople to be awe at their vast
collection of trophies.

TRUE DIGITALOWNERSHIP

TRADINGEXPLORERS
explore, rate, review, vote, curate
They are obsessed with Easter eggs
(special items) and exposing hidden
areas. Explorers love to play as
diﬀerent characters with diﬀerent
gear.

SECURE &IMMUTABLE"Hearts, Clubs, Diamonds, Spades: Players Who suit MUDs", Richard Bartle (1996)

CROSS-APP
INTEROPERABILITY

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OUR ASSETS ARE SOCIAL IDENTIFIERS=STRONGPROPERTYRIGHTSLOWPROPERTYRIGHTSMIRACLE ON THE HAN RIVER

June 29 Declaration

1987 Constitution
protecting Property RightsFREE NFT CLAIM
PLAY TO OWNUSER ACQUISITION AS AIRDROP
90% FIRST TIME NFT HOLDERSGeorge Land and Beth Jarman, Breaking Point and Beyond. Results from 1968IMAGINATIVE THINKING TEST

98%

30%

12%

2%

A GLOBAL COMPANY THAT IS CHANGING THE
FUTURE OF HOW WE LIVE, PLAY AND WORK