NFT Custody: The Missing Link Between Web2 and Web3

Transcript

wonderful thank you all for being back here in such a timely manner we've had some really great speeches just earlier on uh today uh so now we're going to dive a little bit deeper into securities of nfts and the device space and first up is victor from taurus [Applause] good morning everyone so to quickly introduce myself i'm taking care of the marketing and partnership at taurus so and i'm going to talk to you about nft my background is not technical so i will be more through using a pointer a

retail point of view and the plan will be ready to take you through the journey the nft journey and how tourists as a company also can help also from this time company perspective the custody and the management of energies okay so bacterius who are we so we are an end-to-end digital asset infrastructure what does that mean think of us as a one-stop shop to manage any digital asset so when i say any it will be like think cryptocurrencies so including nft tokenized assets and digital currencies first product is capital

it is a tokenization platform with capital you can tokenize on ethereum any smart contract meaning any erc and tesos any sa so fa 1.2 2.0 then the nuclear engine let's call it that way is tourist protect which is the custody solution okay available in hot warm and cold setup then next we have explorer which is the blockchain connectivity so it's like a multi-chain api to connect to different blockchains and fourth is tdx it's a regulated marketplace by the fema

what did we achieve today so we achieved european market leadership when it comes to the banking segment okay over the last three months we even recently signed some systemic bank in france spain and germany we are working with systemic bank private bank investment bank crypto banks so and also many many blockchain protocols with which we also that we are also auditing with us our clients can capture three main opportunities number one as i was mentioning is cryptocurrencies okay number two is tokenized assets as you

know nfts is a bit in between those two worlds it's a bit at the same time a crypto and it can be obviously a tokenized asset when you fractionalize or tokenize existing or real assets uh the third the third world and i want to i won't cover today is more digital currencies so quick test to see the level of proficiency of nft in the room especially when it comes to the art world okay so if i start with top right what do we have well x copy so x copy normally for all the crypto native player

it's a bit one of the most iconic crypto artists middle up is fidenza okay with by tyler hopps top left is manoloid okay one of the most expensive super rare artwork so it's a it's a bit the pope of generative arts bottom left obviously this is what everyone might know is crypto punks and bayc bottom middle is art blocks so it's a squiggle chrome squiggle probably the most iconic generative piece art of art blocks because you're the first art blocks is

what we call expert curated okay and what we are witnessing is also the rise of ethics ash okay which was created probably something like in november october which is this time community curated content art okay and this is on tesos so basically the source is rising as a bit the art blockchain with an organic growth amongst community and the artistic world here is a quick taxonomy so you will see many different forms okay i think what is important to remember is we really have different segments that you can see so there is obviously art pfp's so profit picture collectibles

gaming so you see you hear a lot about this sport and music verse with the real estate and then what we are seeing also is more and more consumer goods stepping in so basically for instance digital twins luxury goods uh getting in also like brands with lvmh breaking gucci and also we can think about the aura blockchain and the consortium which is a bit this luxury blockchain blockchain world so today let's put ourselves into a regular retail user how does it work when i want to purchase an nfc i'm going to go quickly so i go an open c i need to connect my wallet okay

then i need to actually download the meta mask so i need to go on chrome for instance download it and put it on the browser then i need to write my metamask private key so it's a bit the stressful moment because if ever you lose your key you lose your coin you lose your energy you lose everything then you check a bit your account you see you have zero ethereum okay say ah i can't buy anything what do you need to do and then probably either you're able to go buy some cryptocurrencies directly on an embedded like app or you go on a regulated exchange or crypto exchange to just buy some ease

finally you will be able to do your purchase usually if you're faster if you're fast and do everything it's more than 10 minutes i continue i won't go too technical but just basic security risk that's happening also which is some common example so opencl february 22 2022 okay so uh for all existing listing so basically imagine you have listed your nft on uh on opencv there was a smart contract change okay an update so actually everything was being deleted and you had to release kind of a lot of it what happened is that there was a phishing email attack okay so saying okay now you're going to connect uh you

need to you need to connect to openc so basically you arrive to a landing page which is a pure phishing website and then there is a transaction signing request okay saying that okay so basically you need to sign to transfer and change the smart contract and what has happened actually is that here it was a malicious attack okay so basically by signing you give access to your wallet and boom there was more than two million dollars stolen of profit pictures it was mainly bayc okay i continue because bayc was a recurring topic when it comes to to attack same on the instagram account okay so

basically the most powerful way is to induce fomo because usually in this space when you mint you need to be the first and to be fast you are very stressed because it's really the first well there is when you are the first basically you will be able to resell a bit later okay so instagram account is an act you arrive on the website you mint it you authorize the smart contract interaction and boom malicious smart contract you get again you are in system okay this time three million stolen of byc sedan conference as you say indeed there are many many many risks one of the way to mitigate this risk

obviously a ledger key okay so it's not i do advertising for competition but obviously from a retail perspective what you need to make sure is to have a cold wallet which is current best practice okay and obviously once you have this code wallet you don't put blind signature because blind signature on your ledger key if you implement this you will sign automatically an approval smart contract meaning that you will end up getting hacked so solution they're different solution and i'm gonna start with one point of view but we can go we can go beyond from a user perspective okay

the intent is to take five seconds to create a wallet so you will hear a lot about this it's all about converging the web 2 and taking all the constructs of web 2 practice that any user is being used to 20 years old 30 30 50 60 years old which is actually create typing an email and typing a password and you will generate automatically a wallet okay that's number one instead of having to type the private key it's basically the private key will be directly correlated and will tap into a custodial wallet which is my transition

what is important is the custodial right no private key management with long seat phrases to write here you have different ways to achieve it you can also do it the mpc okay so there will be all this next generation of non-custodial wallet that is coming in think robin hood think uh then go think ledger think uh conveys there are many many new entrants that will coming that will pop in probably within the next three to four months with this new version okay but again the limitation here is that it's nice to not write a private key because you release a tension point but you still have distinction point about smart contract interaction

okay so at some point it's all about implementing this logic with being able to rightly smart contract so basically to create a safe environment i insist on this what's safe to protect the users okay and then now think of think of me like for instance i'm a large luxury brand or i'm a large corporations okay what you want to achieve okay your kpi number one is minimum frictions you want low bounce rate you want to make sure everyone create a wallet in two seconds because a blockchain wallet from their point of view is a new touch point okay so it's a new way to communicate with retail in the same way you can communicate through email you can re

communicate through a blockchain wallet okay so there will be tons of new activities like wallets as a service that are being created second is you want to ensure a brand and product reputation that is really pristine okay you cannot afford having a hack having nfc being stolen okay asset security and control in the banking brand infrastructure is critical third it's all about obviously user protection and brand control having a background i haven't spent more than nine years in procter and gamble brand control and brand equity is critical i want to know where my brand will appear usually i want to be able to choose

which metaverse i will display my brand again you need to implement some rules from this point of view and those rules will be critical because again what matters also from a corporate point of view is for instance when i do mint some token okay so that would be a bit my transition and last slide when i do mint here i need to have a proper process implemented i cannot afford having just one person creating a token i need to have an approval workflow implemented here okay so this here with capital you can actually implement governance rules at the smart contract level okay

i continue so once i'm in the token it blends into a wallet okay so this is coming back to the initial infrastructure with when you think about custody and transfer of the tokens we have here toys protect and tourist explorer so it will be all about making sure that you safe keep the nft and the asset in a safe environment and here you need to also implement some wallet rules and governance rules same the company will be able to implement those rules and then if you push it a bit further and now i'm stretching a bit the vision okay the best analogy is think of amazon in the e-commerce in 2000 okay

amazon in the beginning there was a lot of firmware luxury brands saying ah i want to list my product on amazon it's a new revenue generation but actually what was happening is two issues number one was there was a brand equity dilution meaning that i don't want to display my product my luxury and premium product with some random other thing in the open marketplace number two is gross margin delusion i don't want open c for instance to take a cut on my product so we had we saw a movement from really close moving this eco this open e-commerce find out on amazon to more closed e-commerce environment

where actually the brand will have full control of its ecosystem on its user and full visibility on what's happening and you can even stretch by implementing for instance a smart contract royalty fee on every secondary market transaction so the direction is clear so there are really different level of experience but what we will be seeing at witnessing that is that is our deep belief is a transition from current non-custodial approach to a custodial experience that can serve either as a

intermediary step to a non-consolidated approach because actually when you do when you one way this custody wallet you can also drive education explaining what is metamask explaining what what is web free what is this decentralized ownership oh alternatives i'm sure there are so many many people and it's a bit more controversial but for us this is obvious that are not willing to own the asset by themselves so that will be it i think uh i'm perfectly on time so thank you very much for your time and

feel free to let me know if you have any questions at the end [Applause] wonderful thank you so much