DeepSummary
The episode explores the merging of physical and digital worlds through NFC chips embedded in products like clothing and event tickets. Chris Lee, co-founder of IYK, discusses how these chips can prove ownership, enable new experiences like digital signatures from artists, and create a verifiable history for physical items. The pullable token model, where the digital token is controlled by the physical chip, is explained as a way to permanently link NFTs to physical goods.
Michael Blau, a deal partner at a16z crypto, talks about crypto native art projects like the generative Read Write Own bookmark NFT, which changes based on the wallet owner. They explore potential use cases like events access, exclusive content, and brand loyalty programs powered by these chipped goods. The open standard nature of NFTs and blockchain allows for composability and verifiability.
Discussion also covers challenges like counterfeiting, botting for event tickets, and bringing non-crypto users into web3 through abstraction layers. The perspective is that the world is moving towards integrating digital and physical experiences, so implementing digital ownership correctly from the start is important.
Key Episodes Takeaways
- NFC chips embedded in physical products can prove ownership and enable new digital experiences tied to those products.
- The 'pullable token' model allows the physical chip to control the transfer of the associated NFT, permanently linking it.
- NFTs as an open standard provide benefits like composability with existing tools and public verifiability.
- Digital art can be made 'crypto native' by fully embedding it on the blockchain versus off-chain storage.
- Combining digital and physical enables features like digitally autographed items and provable event attendance histories.
- Challenges include user onboarding, verifying human vs bot for access control, and preventing counterfeiting of chips.
- The integration of digital and physical worlds is an accelerating trend across many consumer products and experiences.
- Implementing digital ownership correctly from the start is important as this convergence unfolds.
Top Episodes Quotes
- “The reality of it is because so much of our lives are lived online, it's just helpful to have some of the real world elements as part of our digital identity.“ by Chris Lee
- “For us, the primary way we do that at IYK is by utilizing NFC chips.“ by Chris Lee
- “The way the pullable model works is instead of the token kind of freely trading, as usual, the only way to transfer the token is by tapping the chip. And so you can think of it like the chip or the item actually controls the digital.“ by Chris Lee
- “So the whole world is actually moving to merge this. And if that's the case, why not do it the right way? Why not do it in a way where the digital pieces are implemented in the strongest, most reliable, transparent, and open way possible?“ by Michael Blau
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Episode Information
web3 with a16z crypto
a16z crypto, Sonal Chokshi, Chris Dixon
4/13/24
with @creeefs @blauyourmind @rhhackett
Welcome to web3 with a16z, a show about building the next generation of the internet from the team at a16z crypto — that includes me, Robert Hackett, your cohost and an editor here. Today's episode explores the merging of the physical and digital worlds, as well as what that means for the future of our interactions and identities.
Our guests today are Chris Lee, cofounder of IYK, a startup that's bringing the physical closer together to the digital through NFC chips, and joining us is Michael Blau, a deal partner at a16z crypto who creates generative art in his spare time.
In the conversation ahead, we cover new consumer experiences in everything from concert-going to commerce, the intersection of high tech and high fashion, and differences between building in web2 versus web3. We also dig into the power of open standards, the challenges of posed by bots and counterfeiting, and debates over terminology, including whether 'phygital' should be a thing.
Resources for references in this episode:
- "After Taylor Swift Ticket Chaos, Senators Question FTC Over Bot Law Enforcement" (Rolling Stone, November 2022)
- "Pearl Jam: Taking on Ticketmaster" (Rolling Stone, December 1995)
- IYK FAQ (Notion)
- "Tap to pay your fare with OMNY" (MTA)
- "Introducing Stories Highlights and Stories Archive" (Instagram, December 2017)
- Taylor Swift | The Eras Tour
- Queen - Bohemian Rhapsody (Live Aid 1985) (Youtube)
- "Queen win greatest live gig poll" (BBC News, November 2005)
- "The tech behind Taylor Swift concert wristbands" (Wired, June 2023)
- "Finally, The P.J. Tucker x D&G Collab is Here" (GQ, July 2021)
- On different models for linking NFTs to physical items (Mirror.xyz, February 2023)
- "Lessons from 2023's fashion and beauty NFTs" (Vogue Business, December 2023)
- "Singer Vérité’s fan-first approach to Web3, music NFTs and community building" (Cointelegraph, October 2023)
- "How to Spot a Real Moncler Jacket" (TheRealReal, November 2019)
- "Why Knockoffs Can Help Build a Strong Brand" (Freakonomics, September 2012)
- On the verification process at StockX (StockX)
- "I Returned to Webkinz So You Wouldn’t Have To" (Yale News, January 2019)
- "A Wine-Soaked True Crime Doc with ‘Fraud, Deception and Intrigue’" (Wine Enthusiast, May 2023)
- Sour Grapes (2016) documentary (Amazon Prime)
- "I Love the Blockchain, Just Not Bitcoin" (Coindesk, November 2014)
- "Timeline: Causes of the global semiconductor chip shortage" (Supply Chain Digital, January 2023)
- "ERC-721 Non-fungible Token Standard" (Ethereum Foundation, November 2023)
- Read Write Own by Chris Dixon book, bookmark, and NFT (Random House, January 2024)
- On Duolingo outfits (Duolingo Wiki)
- Ready Player One (Netflix, 2018)
- On "phygital" (Collectid, March 2023)
As a reminder none of the following should be taken as business, legal, tax, or investment advice. Please see a16z.com/disclosures for more important information including a link to a list of our investments.