# NFTs as Web2 to Web3 bridge - Danijel Gornjakovic | Thales

- Channel: [ETH Belgrade Community](https://streameth.org/eth-belgrade-community)
- Date: 2023-10-07
- Duration: 28:20
- Watch: https://streameth.org/watch/yt-Xnb3o-mBMK4
- YouTube: https://www.youtube.com/watch?v=Xnb3o-mBMK4

## Transcript

[Applause] thanks wow that was a great introduction I didn't write that so sorry obviously I got a little bit too excited about this conference so hope you won't hold it against me thanks for coming um yeah the topic is uh nfts and how we leverage them to help onboard users from webto to web free so um well you already heard my name I like to think of myself as a developer trying to do something in the space as the founder of a project I obviously need to do a little bit more than than just development I like to think of myself as an ethereum maximalist I associate myself mostly with synthetics which is a project for stable coins or any any assets that you would like to tokenize and you know make synthetic on chain I'm part of synthetics Spartan Council which is the governing body for synthetics and I'm I'm the founder of dailies and overtime protocols which are also kind of part of synthetics ecosystem uh dailies and the child you all know him from from school from you know math theorems uh Etc uh in context of our protocol dailies it's about binary options the protocol is founded in 2021 it's part of synthetics uh sorry again I I hope it's not too awful binary option it's uh it's like the simplest derivative you know like perps like um Futures like vanilla options well binary option I think it's actually the simplest one to understand it's a concept made of three things the asset which in this example is Bitcoin the strike date which in this example is the end of the year and strike price which we all hope Bitcoin will surpass by the end of the year so your binary Market is Will Bitcoin be below or above 100K at the end of the year and what we did at Taylor's we built uh automated Market maker for binary options and we named it after there is the the ancient Greek Chad who who was the first person who who did options back in the days you know he was watching the Stars he anticipated always will have a great yield so he bought he bought options on on olives being you know having a good yield and he became Rich of of Greek drachmas in the ancient times this is our UI from the DAP for from from Taylor's market and I think it actually shows in the simplest way what we are about so you choose your asset which in this case is ethereum you choose the date the 6th of June and then you have your choice of strike prices you can choose the direction whether it's going up or down you know bullish or bearish or you we also have this interesting it's not really something you can find anywhere else but you can choose a range options so we'll will it be in in this tight range and then you get an extra payout if you guess it correctly or will it be outside what's outside that range and then um over time is part of Taylor's protocol it's what we found when we combine binary options Sports and defy and we like to think of it as a sports automated Market maker oh to some it may resonate better as a decentralized web free Sportsbook which is backed by channeling oracles um no Sports books are really I think good use case of web free and smart contracts perhaps not locally here you you have not um had a chance to be banned from from a sports betting venue but worldwide a lot of people don't have access to it in many cases you you don't you don't get the payout you were supposed to get anyway it's you have a centralized counterparty and I think it makes a lot of sense to use web free to actually decentralize the aspect and to guarantee payouts by smart contracts oh and this is taken from from the dab from our UI it looks a lot like sports betting if a regulator asks it isn't it's a sports markets so you're familiar with you know you choose your leagues you choose your games you choose the outcome you want to speculate on you can do partly tickets so yeah um that was all part of the intro of of you know myself and and the protocol and now to to combine it with the topic of the talk which is the nfts um um so um most people associate nfts with tokenized store of art that they are non-fungible that you get digital ownerships um you know the standards ERC 721 the most known one then you have the batching the 1155 and most recently it's still in draft but the proposal for account abstraction that's very bullish for 337 but um what do we what we miss to kind of maybe even elaborate on is that nfts are actually smart contracts and as such they can do everything else smart contracts can do so they can leverage you know the blockchain the trustlessness the code here is just so the standard just tells you the minimum you have to implement to have the standard it doesn't stop you from adding any other logic or state to your nfts so this is what we at today is kind of gotten to to leverage to to you know do interesting things with nfds things that were not done before obviously um we as as a protocol we need users I think we do a lot of interesting stuff a lot of stuff that even resonates to webto users but we are still having problems with reach like every other protocol out there um ethereum is still a niche like crypto maybe you know lots of people have heard about crypto maybe a lot of people own some Bitcoin or have owned it at the time nfts but when you get to actually using smart contracts when you actually get to how many people have interacted with smart conscious have we have met mask installed have actually used you know D5 we get to a measly number and this is what we need to work on and to grow it to get into ethereum blockchain you need to set up a wallet which means you need to understand what's private Keys what's it phrase how to protect those everyone's how to get your seat phrases I think that's a given ah you need to you need to understand the smart contracts as a concept how to interact with them what's the guess you know you need to pay for every transaction and if you if you're not looking you can end up paying guest bikes you need to understand tokens allowances how to protect yourselves out there I mean that's the the worst thing about it is everyone's out to get you scammers everywhere um and even the the big companies such as Google and Discord they aren't really doing much to protect you like if you Google any project you know you need to appear in finance might be localized but many times I get a scam link sponsored the first one everyone's out to get you you have to be careful while understanding all these and 100 more things has come along in the last three years but I think you know it's gonna take much much more and maybe a account abstraction is the way to go but we still have a lot a lot to go to get to like 100 decks in users count so we at Taylor's have asked ourselves can we leverage nfts something that most people it's the least scary thing to get someone to to blockchain so can we leverage that to to help and ease this on ramp so we started simple now what's the first thing you can do you can mean the collection you can use openc or any other platform out there and you can mint the collection so yeah we figured out all right we can do a collection maybe we can give it as rewards to people you know just have some competition and then we needed some art obviously you know if you have the gas money you know how to do a collection you need some art hopefully one you own rather than copy so we needed someone to do the art actually I think there are some local people here I'll show you our first collection and you know maybe you can tell me at the end if you recognize the artist it's it's very well known locally so this is the first image he did um well I told you it's a here so that's a giveaway um it's Daily's Baby trailer you can see daily you know with his passive fires with with milk and this this went out to anyone who participated in the competition next one a bit more complex to top 20 Traders you know you're speculating on binary options up or down no this one is a fancy one it's only for the top three this is daily you know Daily's being very you know proficient watching the Stars doing calculations on his ancient notebook lots of details again you might be recognizing the artist already here and then the market creator um you know Taylor's selling some eats some Bitcoin apples over there you you probably know the concept of the philippening which at least in my understanding is will it have a higher micro market cap than Bitcoin um we had binary options on whether that will become true or what the ratio will be exactly and the artist has you know he's not a crypto Savvy person we explained the concept and he understood this as a cockfight between 18 Bitcoin or a rooster fight if the word you know is more PG um and then their tail is burning some heat sitting on his War chest probably from the last bull market and finally this one was not for the competition we have a game as well I'll touch more on the game in in the next slide but this this went out to everyone who who found the Easter eggs we placed in the game again a very fun competition foreign I hope you know yeah I hope you know him Chad Bob he really helped us help us out and I'm looking forward to more cooperations with him a very famous Serbian artist illustrationist not sure what the word um so that was that was the first thing you do you you meant an nft erc721 pretty simple all of you can do that then you know let's we were thinking what else can we do and we were lucky to actually have community that had people who know how to build games there is their hands and said you know we want to help the only thing we know how to do is build games and we were like great we love games let's think of something we came up with this game which is kind of like uh origin tale of of Taylor's as a protocol in ancient Greece with a lot of twists on the image you might see vitalik with his portal so I encourage you it's like 15 minutes of trying the game it's quite fun educational as well so the game itself I mean all the web free games are kind of centralized they all render on on AWS servers like the web free aspect of it is maybe the nfts which tokenized the items the armor sets and Etc or maybe you know some real estate within the game so yeah we we did the same we we tokenized various armors or items you can earn or get what by doing some quests or you know just being aligned with the protocol you get these nfts you can mint them and this is the erc1155 standard where you can mint multiple items as part of the batch like a collection within the collection and following the the single game mode which is just you know a story an educational mode we also released a metaverse metaverse version and I mean it's great fun like it doesn't have much to do with our protocol per se except for the educational online part but it's great fun this is uh they did a meeting like synthetics ambassadors synthetics Dao did a meeting within the game where they all Flex their various armor sets so I think this is a really interesting use case for for the nft 1155 standard at least and now we are taking it a little bit to Next Level Dynamic nfts nfts which can mutate which can evolve which can change their state we did this fun I get a game but not a game like actual game or like a board game social game squid games was a huge thing at the time when we came up with this so we were motivated by it so binary options you choose up or down you know will it be more than 100K whatever the date obviously screenshot from from from the past um so there there are six rounds so you choose up or down it's sudden that if you win you go to the next round if you lose your you die and if you make it all the way to the end like mad says it's 64x winnings so there's a buying and everything um and we thought why don't we represent each player um what I had like 10 of these so it was like 99 bust um so why don't we why do we most represent each player with an NF team the nfts and this is I want to show you the code my idea for for the presentation was to to have it a little bit technical you can actually render nfts on chain with SVG code obviously you probably don't want to do this on L1 due to gas prices but you can do it to L2 maybe on L3 um so the nft actually renders the image comes from the blockchain and it changes as the the state changes which gives you out of the box validation so this is actually very important for like secondary markets when someone's trying to sell you his ticket because like me in the middle of round three maybe you want to sell your position it's worth something you know because you made it to round three but then you know how does someone validate your position they just look at the image you made it to the round one two three this guy actually made it all the way to the end this one has has died no actually the design we had for this was you know out of this world but because the SVG is now on chain you actually have to make some cutbacks so you cannot really do very fancy svgs on chain yet you know maybe one day I still think it's very interesting especially for validating the state so everything so far was mostly about you know dailies binary options and now a little bit of overtime and how we use nfts in overtime um zebra is um the overtime's mascot per se and he's a huge sports fan and last year we had the biggest you know event the the event that happens every four years the FIFA World Cup and zebra was very excited about it and obviously we wanted to do something special for the event so we were motivated by you know this Panini collection everyone does for the World Cup so zebro he loves all teams he was wearing the jersey and the flag of each team and we we did the nft collection of all these countries and the users we did like a incentivized trading competitions users would choose their country and they would mint it and this is where we introduced the concepts of Soul bound and like unique nfts so you can only Mint one you can only choose your country one Serbia which you regret but it is what it is so it's non-transferable you chose you stuck with it and then we leverage this nft um by by doing a trading competition where you get bonuses if your country is winning if you bet on it and you know it makes it all the way to the end again jokes on me and Serbia but it was a very fun competition this was the the view in which you would choose your your country I thought that the screenshot is very nice to share this is where you see a little bit of the code of the of the mint method that actually I just wanted to depict here how you can add a lot of custom logic to the nfts you can see we are storing you know who minted what what's your favorite team um you can see in um in the upper checks all the requires that means that you know which we do the soul bound check um that you don't already have an NST that you haven't already minted it yeah so uh I mean it's crc721 standard but you know the idea for me was to show how you can use it for much more than just you know a collection and an image um and then the next big thing we we had was March Madness maybe in Serbia it's not that popular um but in the US it's it's a huge thing and even worldwide it's this uh tournament where you have um 64 NCAA college teams that compete in this sudden death format and what Everyone likes to do for March Madness is they want they like to do their prediction brackets should you get oh you get um you get 32 teams on each side of the bracket and then you you do your predictions all the way to the end um yeah and obviously we thought that this is a very good use case for nfts that you can actually store your whole prediction bracket on the chain and again it's gonna be so bound but it's mutatable until the tournament starts you can change the outcomes so this is how you would choose you know who's going to win Purdue or or t-a-mu whatever you choose your whole brackets in the end you you meet your NF team you can Flex it um it was also competition you know who did best if you guessed a lot of no one has gotten a perfect bracket I don't know if that happens but if you get taught guess a lot of outcomes you get bonuses in the trading competition and this is a little bit of the code similar to the last one but what you see here is that the the input is like an area of 63 which is there are 63 games so 63 outcomes it all gets stored on chain and you can straight from the chain there's this read method that you know you can get how many correct predictions they had directly from the chain this one now is probably the best use case for on-ramp and in various baffled and surprised that more more projects aren't leveraging this you can actually do nfts gift cards um if you want to bring your friends and this is not an advertise but if you do want to onboard someone to defy or you know specifically to overtime you can mint them you can take some susds the synthetic stable coin on arbition we use usdc you take 50 usdc you can take 10 or 5 you mint them a voucher you send them to their wallets and what's actually interesting for you and the incentive for you is that you get the referral fees if they stick around after they try it you get all the referral fees so I think this is a very powerful marketing tool an owner tool and I like to to stick to the to to the code list sorry I'll just I'll get back to that one um so you can see in the mint method you you provide the recipient so to whom you are gifting the and I mean it's transferable so you can make it to yourself and then send it um and the amount of of how much dollars you're putting into that nft and then you enrich this nft contract with the use case for the dollar so the money can only be transferred from the nft as you specified it can only be used in in your protocol in your platform so that's the method buy from amm with voucher I just wanted to show you how it looks in the tab so you you can mean to choose the amount you choose the recipient and then when you're buying a parlay for example you can choose to pay with the voucher so it's really like web 2 like you you go to a store you get the gift card you give it to someone else so the concept is very familiar to you but I'm very surprised to not have seen more projects use this on the blockchain so this is the final one and I thank you very much for bearing with me and my voice um parlays in Serbia we call them tickets you know we have a lot of combinations and then they multiply the outcomes you have to guess all of them correctly and then you get large pellets obviously I think we haven't done this yet because Pilots are kind of new for us but we plan to store par lists as nfts because um it gets us like out of the box secondary Market we can use the dynamic nft approach to render the svgs so all of this can actually be rendered on train and then you know when you when you sell it to someone or you do early cash out if there is like out of the box validation to wrap it up um yeah I I hope I've shown you some interesting use cases for for nfts that perhaps you you can take on to your projects and that we have seen that the nfts are and can be much more Beyond art storage um other use cases involve around like copyright patterns and intellectual property royalties film music for gaming we already see how how we have already seen how it can be used you can actually do your whole web free identity as an nft like we all have our own web 200 identity like which is Google like for me Google is I log in with Google everywhere well that can be an nft in web free and I think it should be because then you can tie everything around it and actually you can tokenize any world world a real world asset as an nft and leverage smart contracts to lose this bureaucratical complexity I I read that in California they actually tokenized the real estates with nfts and then you do an auction and you actually get you know you buy the nft representing your house so I think that's that showcases how the future can work with nfts and smart contracts I thank you for your time and for your patience I hope it wasn't too tedious and too painful listening to me and you know I welcome any questions thank you [Applause] thanks Daniel I'm asking a question at least 50 just to make you talk some more because it's hilarious uh so if I'm a like web 2 companies or companies and it's in my interest as a web 2 company to keep users on my platform so it might be ultimately in like the end users uh interest to have these things is like permissionless and liquid outside of a web 2 platform but one of the challenges I think a lot about is how to incentivize web 2 companies to make their assets available outside of their platforms like as a game developer I mean there are lots of complexities with like game in-game assets you know you can't take like a CS go skin and make it work in fortnite that's like totally non-trivial but even for simpler assets like how do you see solving that problem of uh incentivizing web to or traditional companies to want to make their membranes more more permeable yeah I thought of one example as you were asking the question I mean let's talk about Banks you know how much do you think banks spend on people who just manage the bureaucracy of and and if you've ever been to a bank at least in Serbia like even if I just need to to change my address I have to sign like this many papers so I'm sure you could sell It ultimately by showing them the cost would be lower if they would manage their data on blockchain you know with smart contracts and if they don't need to hire like 500 people just to manage the bureaucracy obviously we need to get there right so like we aren't there yet but I think that's that's kind of the answer to your question you know show them how how it's going to be more productive and cheaper for them ultimately you shown the multiple ways and the purchase you used here but like I'm curious which of these has brought you the most user the the most profit actually I mean it's a it's a great question uh the World Cup was massive but I think that's just to the nature of the World Cup like the the volume we have hit um the number of users during the World Cup yeah it was out of this world but I do think the best um use case for Honor MP is the voucher because you're actually I mean we all got friends who who are asking us can you show me you know blockchain can you show me how to use I want to tap into that but like where do I start well you know here's a voucher and if you do like it and you end up using the protocol a lot actually get referrals all the time from you so no a little bit of a hidden agenda there any more questions all right thank you thank you Danielle for the engaging presentation and sacrificing your voice in the name of celebrating it Belgrade hugely appreciate it thanks uh we're headed for a short coffee break and uh from that point we are going to continue and actually have a few very interesting talks about security so make sure to stick through thanks foreign [Applause]