Prepare Yourself For the Next Wave of The INTERNET By Learning These SKILLS | Tom Bilyeu

everybody welcome to another episode of impact theory today we are talking about one of my favorite topics and that is the first steps in nfts web3 blockchain crypto however you want to think about it that entire universe which is going to change the world [Music] it is happening so fast it is crazy and we're going to be talking about how you can get into that space how to orient yourself quickly so that if you know nothing you can very quickly get yourself in orient be doing things safely and have an understanding of where things are going all right so we're going to be answering your questions here it is first one if you are very interested in web3 and want to move forward with it what are the skills that you need to learn what are different ways to interact with web3 okay this depends on whether you want to be a community member in web3 or you want to be an active creator in web3 if you want to be a creator that's very different for that you're going to really need to understand where things are going and how you're going to be able to create in it what the changes are that it's going to be making at a high level i would say the best way to understand web3 is to go in and learn about blockchain technology so whether you want to be a community member or a creator that's going to be the first step that was where i started so i had no intention of becoming a coder or anything like that but i knew that if i could understand what the technology actually was what it did that i would be able to better predict where things were going and once you can predict then you can do something novel and so whether that prediction is what you should be buying and holding if you're going to take an approach to this as investing in overpriced jpegs as people lovingly say in the industry or whether you want to engage with it as an upcoming form of entertainment or whether you want to code that really is the foundational thing is you need to be able to predict where this is going and to understand that the basics of blockchain are most easily discovered i would say by taking the biggest blockchain right now there's really two that i think are critically important if you're looking at this from an investment standpoint i would start with the bitcoin uh chain really look into what's going on on um the world of bitcoin understand that understand the fundamentals understand why it's considered to be a replacement may not be the exact word but certainly analogous to gold that this is sound money that it has a fixed supply and that the blockchain is designed to resist change that it can change but it is very difficult to make changes to the bitcoin uh protocol and that is what gives it its stability that is why people look at it uh to be a sound money equivalent and so getting into what is money i will point you to robert breedlove he is an extraordinary voice in this space that will really help you understand what sound money is why it's so important but that's going to be the first place if you're looking at this as a long-term investment i would highly encourage you to look at that now of course there are dissenting opinions and there are many people that take a very broad approach to cryptocurrencies and how to invest in everything from investing in the currencies to investing in the nfts is obviously a huge path that people are treating as an investment vehicle we will talk more about my opinions on that later but for now bitcoin and ethereum are the two that i would point to so for sound money bitcoin makes a lot of sense to me again this is one man's opinion as you get deeper into this you're going to want to take a broader look at what else is going on so you can really understand the full breadth of what is happening in terms of cryptocurrency uh but starting with bitcoin i think is the right place to start and by the way full disclosure in terms of my own investments i have minor investments in a lot of things but the only thing that i have real substantial portions of my net worth in are bitcoin and ethereum so uh for anybody that wants to accuse me of pumping my bags you would be absolutely right that bitcoin and ethereum are something i've placed huge bets on but ultimately i am chain agnostic as both a creator and an investor i'll pay attention if i see the wins are changing then i would look at uh moving elsewhere but i am a big believer that picking a few well-researched bets which by the way i'm not a financial advisor do your own research that is critically important to understand but i think placing a few well-researched bets and then having time in the market instead of trying to time the market which is an old adage i would say is a very wise old adage so bitcoin and ethereum that's where i'd start now if you want to be a active community member around the social movement of web 3 and i will definitely say that web3 naturally encourages crypto encompasses excuse me cryptocurrencies but there is a very important and meaningful distinction to be made between bitcoin which is primarily a financial instrument and ethereum which is while it is definitely a financial instrument given eth and how people look at it as programmable money but there is a much broader world to all of the blockchains that allow you to create things on them now there are a lot of blockchains i'm going to focus my time and attention on ethereum for a couple of reasons one i understand it the best and two i've come to understand the best because when i looked at it in the beginning truly objectively before i had any investment in it whatsoever there's an adage that says follow the developers and to this day that is where the vast majority of developers are creating is on the ethereum blockchain now that may not last forever and so again as you get deeper into this world broadening your understanding of more blockchains i think is very wise but since we're talking first steps say keep things simple start with those two understand the basics and the fundamentals and you're going to go a long way now what is a blockchain i think that's an incredibly important thing to understand a blockchain very simply put is you are creating a distributed ledger so it is a database that you're putting on a lot of computers in some cases thousands of computers and so it becomes extraordinarily difficult to hack it because all of those thousands of computers have to agree on what the ledger says now i don't understand the under the hood technology well enough to give you a phd level dissertation so i'll keep this very high level but what it's doing is whenever a transaction occurs somebody buys something transfers something that when that happens that's what's called settled on the blockchain meaning it's written to the blockchain all of those thousand computers or thousands of computers depending on the blockchain say do we agree on this yes or no if yes cool we write it to the ledger you need at least 51 percent to agree if not then the transaction will be considered false and it won't be written to the blockchain and so the blockchain is this immutable thing that nobody can change you can't hack it unless obviously you're going through the actual channels of buying and transferring but once it's written to the blockchain there's no way to change it so if we put something on the blockchain like the impact theory founders keys there are most of the elements of that because there are some parts of the metadata that can be adjusted but for the most part once it's on the blockchain that's it in fact the things that are on the blockchain are immutable the things that are pointed to that actually exist off the blockchain i don't want to get too complicated here those can be changed but for the most part just think of it this way once it's written to the blockchain it's forever and so getting it on the blockchain is a tremendous way to secure something so on the bitcoin network to secure your money obviously if you have a literal gold bar you have to carry that with you if you want to take it somewhere else whereas when you think about making that gold bar virtual in the case of bitcoin now i can take it wherever i want um just by moving myself or by taking a thumb drive with me but you could literally memorize what's called a seed phrase you could memorize that yourself go to a new country type in the seed phrase into a new computer and boom you have access to everything right there uh so there are a whole host of reasons why that's valuable but the big thing that i focus on as a creator in the blockchain space is that now you can create true authentic ownership of virtual goods which did not exist before and so that begs the question will people value virtual goods in the same way that they value physical goods now that question in my opinion has been asked and answered billions of dollars a month flow into the blockchain via nfts it's i think as of today i honestly haven't checked but we have been over i think two trillion dollars in terms of assets and cryptocurrencies as a total and so when you think about how much money has come into this space whether in the form of nfts or purchase currencies or defy i'm just the list goes on and on it's extraordinary it it is a sea change in the way the world works and what the world is saying is that yes if we know that that virtual item can be secured then and authenticated then we do value virtual goods as much if not more than we value physical goods now i never would have imagined that the following statement would be true for me but it is for the most part not entirely but for the most part the things that i certainly collect i would rather have a digital version of that than a physical version of that all right my friend i have a big announcement my incredible and talented wife lisa is about to launch her new book radical confidence in it she has managed to perfectly capture the process of how to go from feeling lost and insecure to taking control of your life and doing amazing things despite feeling fear sometimes a lot of fear now let me tell you nobody knows lisa better than me but when i read radical confidence for the first time and heard her describe what it was like for her to go from having these big exciting dreams as a kid to then as an adult scheduling her life around the tv shows that she wanted to watch or how lonely and isolated she felt instead of pursuing her dreams it was brutal for me i would never say though that it was worth it for her to go through all of that just so that she could write something down that allows others to avoid it but i will say that at least she was able to capture the strategies that she used to break out of that rut find her voice and begin doing incredible things despite her insecurities and fears that she wasn't going to be good enough to achieve great things so while it hurts me to know the dark place that lisa went through i really am excited for people who are going through something similar right now to read this book radical confidence is an instruction manual for how to become the hero of your own life even when you're scared to death look i know better than just about anybody how easy it is to get off track in life or to just not have yet found your calling and it's even easier for people to feel so insecure and unprepared that they don't even want to pursue the things that they want but what lisa shows people in radical confidence is that the radical part is that you can accomplish extraordinary things even when you feel fear that's what radical confidence is being afraid and unsure and having a tool kit that allows you to still make massive progress pre-order your copy today because if you act now you can claim the bonuses that lisa has created for you at radicalconfidence.com they're only available if you pre-order so act now then once you've done that we'll get back to today's episode all right guys read the book and get ready to be the hero of your own life peace out [Music] so for every statue that i have behind me i have more things in the nft world that i've collected and part of that reason is that you can connect with a global audience and so you can buy things made by people halfway around the world instantaneously it's very extraordinary and you can show it to people halfway around the world instantaneously so if the things that we collect are like these signaling molecules that we show to people about who we are and what we love what we have an affinity for the ability to show people all over the place instantly in a highly curated way i can go in and decorate and display it in a virtual gallery it's really pretty extraordinary so once you understand that the blockchain is the thing that allows me to say you see that digital thing over there i actually own that and the human mind whether it should or not is irrelevant the human mind the way that it works is that we value ownership now again you can say that that's dumb but the reality is that's how the human mind works and so millions of years of evolution have led us to the point where we value ownership we value signaling we value flexing quite frankly and showing people the things that we've collected that we have that we love to be able to find other people that enjoy those same things and so people have just really taken to the the world of nfts precisely because the blockchain allows us to authenticate and say that i own that okay i don't think that would have been a revolution if that were all that it did and this is where you get into the whole right-click save mentality so people talk about well why would something that's virtual ever have value i can just right click save that image and now i have the same thing that that person who just paid thousands of dollars for it paid why that's dumb why would i ever do that and that's a fundamental misunderstanding of the technology and that's why i say you need to understand the tech once you understand the tech now you can predict where this goes so let me give you a simple example of what we're doing here at impact theory so i am obsessed with web 3 because not because of the necessarily the financial element look that's a critical part of it that isn't what gets me excited what gets me excited about web3 is the fact that inside of that jpeg is matrix code and now with a computer i can write a program that becomes what i call wallet aware and your wallet is what they call where you store your nfts in this case and i can build an application we actually have called project kaizen and with project kaizen when you come into our environment i can look at your wallet i can see what you have an affinity for and then i can create experiences that respond to what you have in your wallet so if you were to have one of impact theory's founders keys i could create a custom entertainment experience around that i could open magical doors inside of the virtual world if you had ar glasses on i could create an experience in real life again based on what's in your wallet that idea of wallet aware is going to change the face of entertainment forever it is going to change many aspects of your life it's going to change real estate medical records obviously collecting entertainment sports i mean it's on and on and on and on it's going to go so it is this like i said radical sea change tectonic shift like whatever grand idea word that you want to use it's going to have that level of impact because it's giving people the ability to customize an experience based on this curated world that you've created for yourself that represents you and what you like and you get to decide what's in it you can take something out put something in you can create multiple wallets you could come to project kaizen with all of your anime nfts because you know that we are obsessed with anime and so there are all kinds of things you can do to tailor those experiences yourself but as a coder understanding as an entertainer as a as a musician as an artist as so many people are going to find that if i can see into your wallet and see the things you want me to see the ability to customize an experience for you to show you something that nobody else can see to create this back and forth conversation between me as a creator and you as a community member it's really extraordinary so we just put something out called the life map so it's basically the book that i was going to write distilled down into just the core idea now if you were to have one of those life maps in your wallet and come into project kaizen which is a you can think of it as a game-like experience so it's coded in unreal engine most of the video games that you play are coded in unreal engine a lot of animation is being done in unreal engine and now i can do something special for you because you have that life map so i created something we gave it to members of our community those members then come back with that thing in their wallet we then create a custom experience for the people that have it right and and then i could let you win something get something earn something whatever and now that generates another nft in your wallet and then i can create another custom experience based on that thing and so you get into this incredible level of it's better than to choose your own adventure but it's like that where choices you make allow me to customize experiences which then allow you to get something else which allows me to customize an experience and so you get into this reciprocal relationship with the community in a way that makes them far more than an audience okay this is probably getting a little bit complex but wallet aware so hold on to a couple ideas wallet aware immutable blockchain authenticating virtual goods which gives virtual goods as much value as physical goods that's the world that you're living in that's the world that your kids are going to grow up in and take for granted once you have a generation of people that takes for granted that the things that they buy will influence the entertainment just to keep it so basic it's way more than that but just to start there that the things that you collect are going to influence the entertainment as you encounter it so that you and the person next to you wearing ar glasses right it's a few years in the future but bear with me you both have ar glasses you're both in the same space and you're having these unique experiences because of what's in your wallet now as you begin to understand how to harness that technology and the idea of being wallet aware predict out five years predict out 10 years as the infrastructure is built it becomes this incredible wonderland the example that i always give people is i want you to imagine that you wear your ar glasses or you could do this right now today with your phone you go to a a shopping mall and on their directory is a qr code and you point your phone at the qr code and that qr code launches the [Music] one day to be created uh impact theory app let's say even project kaizen and all of a sudden on the floor a blinking arrow appears because remember with ar i can make anything appear that i want and you follow that arrow and that arrow leads you around the corner and there is a giant mech from one of the comic books that we've written and in that mechs hand is a floating quest bar and you go and take that quest bar and it's all virtual so of course it's an nft and it goes into your wallet and then once you've grabbed that it shows another arrow and that arrow leads you to a gnc and in the gnc you can redeem that for an actual quest bar that kind of thing so that is but one example of how something that is theoretically virtual finds its way into the real world and that's stuff that you could do today now imagine where we go five years ten years from now it really is going to change everything medical records is another great example so putting your medical records on the blockchain so that you control them not the hospitals unfortunately my cousin passed away and from cancer and my um technically was my second cousin so it was my first cousin that uh was just heartbroken that he felt that a big part of the reason that he had gotten so sick was that getting the medical records from one doctor to another was next to impossible because of hipaa compliance now hipaa compliance obviously has its roots in something wonderful to protect your privacy but because you don't control it because there's no way to make it virtual and secure it until the blockchain and so the blockchain allows you to secure this thing to authenticate who should have access to it so that you can control it so that you can show it to whoever you want but it puts the control in your hands all right so that's the fundamental idea of web3 so recognizing this idea of authentication of virtual goods wallet aware that we can create these tailored experiences that you can hand craft what you want the world to view you as it really is a extraordinary life-changing technology and when you understand those fundamental elements you can begin to evaluate projects for how well you think they understand where this technology is going to go and so right now people are very focused on the financial element which is exciting and has brought a ton of energy into the space and thank god and i think that that has a lot of implications that are uh incredible but i think that there's an emotional wave that's about to hit where people are connected to the experiences and to the items that they own in a way that hasn't been possible before and so it's a new level of involvement with your favorite things whether that's harry potter star wars um a friend's world that they've built in unreal engine which is just making it so much easier for people to create whatever the case it's going to deepen and enrich the experiences that we have with the things that we love the most that's web3 all right next question the speed at which web 3 is growing makes burning out from fomo almost a normal thing to do in the community how do you personally balance learning and being active in this space while still maintaining your goals okay so this is where we all have to be adults and we have to set limits i use rules in my life so i have goals i have routines i have rules and so i have bright lines about how much time i spend doing things that are uh you know just fun or whatever the case may be so if i'm treating it like i'm investing then i'm gonna say how much time do i want to spend on that and if that's four hours a day amazing then i spend four hours a day on it if it's 40 minutes a day then i spend 40 minutes a day and i don't go over that so i think that web 3 is one of the most profound technologies i've ever encountered in my life i cannot express how much it's changed my business but i've been very careful to recognize that it is a double-edged sword that creates this really bizarre loop in people's minds of feeling like they have to check things all the time constantly constantly checking fo mowing right fear of missing out people are so afraid they're going to miss the next big thing that they're just constantly in this death loop of checking looking at the price has it gone up am i in the discord do i have alpha have i you know become aware of the next big thing did i get in early enough have i gotten on the white list and it really becomes this maddening death loop and so just like social media was a double-edged sword so is web3 and people need to be extraordinarily protective of their mental health to not allow yourself to get in a death loop to put limits on the amount of time that you do it to put limits on the number of times that you check on a project in terms of its price to limit the amount of time that you spend in discord et cetera et cetera et cetera you have to be really careful it should be joyful it should be fun it should be part of a larger strategy if you're treating it as an investment right i don't spend nine hours a day on my stocks so i would encourage people to put those guard rails so that you're not getting sucked into something that you're not making unwise decisions because of fear of missing out okay find things that you are excited about from an emotional standpoint and this is why i'm a little apprehensive about how much focus there has been put on the financial side of what's going on in web 3 and not the emotional side and what i hope is that this next wave of creative is so emotionally compelling that it becomes like a book or a movie something that's enriching your life something that's making you think of interesting and unique ideas something that you can have a personal relationship with go on this incredible emotional journey learn something about life improve yourself our whole thing is at impact theory if you're winning at impact theory's project kaizen gamification then you should be winning in real life and as more projects come on board that have that approach my hope is that people begin to attach to those projects for the emotional rewards that it gives instead of just the financial rewards so that would be my advice to people is find a few things that you connect with emotionally don't just do it for the hype cycle and get lost in these death loops of hype now i have gotten just as excited as anybody else about some of these projects and it is fun and it is very addictive but because it's addictive i don't allow myself to go into a negative spiral and i avoid that by putting rules around how much time i spend on things so just be very careful be very thoughtful don't overextend every time you buy any investment whether it's a stock whether it's a bond whether it is a nft which i personally do not treat as an investment just to be very clear assume that the value is going to go to zero and if you wouldn't buy it if the value went to zero don't buy it because then it becomes stressful and it isn't fun so that would be my advice to people only invest what you can afford to lose and if that's only five dollars only invest five dollars all right what are a few areas or domains that are going to be impacted by web3 in the next one to two years how are they going to change okay so i talked a lot about this in the first answer so i'll cover this briefly but it really comes down to this idea of wallet aware that the technologies that are going to come up are going to be able to learn something about you by what you have in your wallet that people are going to begin to craft what's in their wallet so that they can tailor these different experiences to what they want they're going to really be able to contribute to that to be able to create things themselves that other people would want to collect as a sign of participation as a sign of support whatever the case may be that people are going to find very easy ways to create things like a po app which is known as a proof of attendance protocol and so by going to a concert your ticket will change right this is an nft so you can do things that actually allow it to change remember in the first answer when i said that there's actually sometimes the blockchain is actually pointing to something off chain that can be changed so it's called a dnft or a dynamic nft and so now based on real world events like your attendance to a concert i can update that ticket to have new rights it could give you access to things that you wouldn't have access to if you only bought the ticket but didn't attend you could do things like if somebody has attended five of their concerts in a single year that they get access to something new companies could create these extraordinary loyalty programs because they can verify that you've done xyz thing right so for instance in project kaizen one thing that we're doing is on the release of the first seven characters of the reveal of the first seven characters from the game if you go in retweet and register you can actually collect an airdrop for each of the seven characters if you collect all seven you can do what's called burn those so you're getting rid of them you burn the seven in exchange for an in-game item and so there's going to be all kinds of things like that to um allow people to collect and then to use a really fun word transmogrify that thing by burning it turning it into something else or a ticket which literally would update and be a new image and again it can look different it can act differently so it gives you access to different things there's all kinds of opportunities once more creative people come into the space understand the technology and see what they can do but there's already some really extraordinary things being done just like the internet changed the world forever web 3 is going to change the world forever as well and if you're interested in learning about the blockchain cryptocurrency nfts and what all of this actually means and how it's going to make for a brighter future i have created web3 university to teach you exactly what's going on and make sure that you aren't left behind registration is free everything is laid out in sequential order so even if you aren't fully sure what a blockchain does or why people are so excited about all of this then you can go through step by step and you'll be well prepared to get started you can go to web3u.io to register it's completely free and we'll be updating the content there regularly as things change i'll see you guys inside take care and be legendary peace so i think in the next one to two years entertainment is going to be changed i think music is going to be changed obviously as a subset of entertainment i think that real estate is going to be changed i think that you're going to see big changes in medical records i think that's going to be big i think loyalty programs are going to radically change art has already changed i think you're even going to see the next evolution of nfts as they become more focused on the d part of the dnfts we get more dynamic things more things responding to what's going on i think um sports is going to change um example i think that you're going to start to see nft based fantasy leagues happening i think there's going to be all kinds of things it is so incredible like when you can actually prove that somebody owns something the whole world opens up video games are going to change collectible cards are going to change and on and on and on all right can you explain what a sandbox is and what your thoughts are about sandbox okay so sandbox is a metaverse a metaverse is a very loose word that people i think would have a hard time defining these days but right now a metaverse is basically a sandbox with a lower s so you create a virtual space that people can go in they can move around they can meet other people it's kind of like an mmorpg uh where there are many games being created by a bunch of disparate people so it's sort of the nft version of roblox that is built in what is sort of a physical space meaning that even though it's virtual they've taken the constraints of the physical world so they limit the size they limit the plot they limit the height they limit the physical aspects of the game even though it's virtual so it isn't technically physical but you get the idea so they bring all of that limitation and as i say limitation makes the art so i know that people will often say okay wait these are virtual worlds why on earth would you make them infinite uh and the reality is i think some people will so with project kaizen we're taking a very different approach so it isn't constrained in the the we're not trying to bring the physical limitations into the virtual world but we do understand the power of limitation so we're very cognizant of what we have to do around uh supply and demand and things like that we're just not bringing the physical limitations but that's what they're doing in most metaverses so sandbox decentraland being two of the most famous examples high amount of constraints and then you get all of these minigames being built inside of them so i think that sandbox is very interesting and they're doing a wonderful job of getting people in to play the game and to create the games the reason that we didn't decide to create inside of sandbox is because when i stepped back and said okay we're about to make a huge investment into stair stepping it's very important to me that we roll out in phases into being a triple a game studio as part of what we do at impact theory and i didn't want to go heads down for three years or five years or seven years in the case of some of these bigger franchises i wanted to be able to make things you know and release them you know every six months or so and and go that way so that there's cooler and cooler things that are stacking on top of each other and when i step back and looked at it i thought okay well we could build inside of sandbox but there are all these huge limitations both from a technological standpoint from a style standpoint it's all voxel art if you've seen that everything's a square and also somebody else owns it and so i can't do whatever i want and instead i said well is there a technology again follow the developers is there a technology that's already being used and there are a few so sandbox has a fair amount of developers you've got um decentraland same thing a fair amount of developers but when i really started looking at it you start getting into like minecraft has a lot of people in it roadblocks has a lot of people in it so we looked at those but again a lot of the same constraints that you have on sandbox roblox and minecraft i think are better from that standpoint but still certainly from a stylistic standpoint i was very limited and then i started looking at unity and unreal engine and when i got to unreal engine i was like wow this is appropriately named because it is unreal what you can do in that i happen to have the good fortune of knowing the uh i guess i think they're super public yeah they are public about this so i know the people at bronze studios uh and they made a decision to take their animation division and go entirely into unreal engine and that was the first time that i was like whoa like filmmakers are really starting to invest in it so i started really looking at the technology i got a behind the scenes look at what they were able to accomplish it melted my brain it's extraordinary i started looking at real time virtual production so you could look at an ipad and see the virtual world there on set so you could be in an empty warehouse but look at your ipad and it's you could see the actor inside the virtual world as their character in real time you could do camera moves it was insane so i was blown away by that and then i started looking at what you could do from a game development standpoint and how quickly you could iterate and put things out and i was sold and looking at the sheer volume of developers that are already savvy on the platform i just really believed when i step back and say okay if if this is an inextricable march towards ready player one how do we actually get to ready player one because first of all let me tell you ready player one is a long way off call it ten years for like the really basic version the the non-sort of super uh you know where you're feeling everything but what you can do right now is what i call the metaverse archipelago so if ready player one is the metaverse where everybody is in one place it's all interconnected how do we get to that okay first of all except that you're never going to be able to step out of one video game into another because of what's called balancing so where a weapon is balanced against all other weapons on that particular map etc so that's i don't think ever going to be a thing you could make one game that a whole lot of people play but you're never going to be able to go from grand theft auto into fortnite into destiny 2 which is the game i play you're never going to be able to bounce around like that just isn't going to work because of balancing so i thought okay but there is this other part to ready player one the book which if you haven't read the book read it i think it so accurately predicts what the metaverse is going to be like that it's crazy i'm not even sure that he intended to predict how the blockchain would work obviously he did a phenomenal job of just predicting what he thought that next phase of like snow crash was going to be um but he really predicted what the blockchain allows you to do which is to create these very customized experiences and they're experiences they aren't a traditional game and so ready player one the book will give people the greatest insight into where we're going with project kaizen because of that what i call game-like experiences so one of the uh game-like experiences that they talk about in the book is creating um man i'm blanking on his name but john hughes creating john hughes's chicago suburb where basically all of his films take place and as a child of the 80s i was just like oh my god this is so cool and anybody could go in and create a world uh level an island however you want to think about it and create experiences for people in unreal engine because it is so universally used that somebody could create something for us for instance and then we could import it into our game but they wouldn't need to know anything necessarily about our game they would just need to know some really basic specs and then create inside of unreal engine and so that's when i was like whoa like this is incredible so you can create these experiences i don't need to worry about balancing that a player can go from anybody's game like experience if it doesn't require balancing as long as certain standards are agreed upon which are not yet a thing that hasn't happened yet but i am very confident that in the next call it five years that there will be a tcpip https protocol kind of thing for the internet that allows web pages to connect that will allow people to take their avatar and go from one metaverse archipelagos like an island right of a metaverse island if you will and go from that island to another island to another island to another island and so when you look at now the number of projects that are beginning to build in unreal engine uh you've got uh project kaizen so we're building an unreal engine you've got um the board api club building an unreal engine uh you've got um akira or sorry uh clonex building an unreal engine and so there are a lot of these big projects and there's far more you've got a lot of these big projects building in unreal engine and if they're doing a game that requires balancing you won't be able to match those up but if they have these game-like experiences then you will and so having one consistent identity across all of these different projects once the standards are set and people adhere to them then you can do something really extraordinary i think it is only a matter of time before those standards are set so that's why in the end we ended up going with unreal engine i could just see by following the developers by looking at how robust the technology was by understanding the technology so that i could predict the future i thought okay this is how you build towards ready player one again over a long period of time but you start by creating these islands you then get the standards that allow people to at least in the non-balanced parts be able to go from place to place to place that allows you to unite a lot of different communities and then there's actually more people i've heard building games where different communities can come in select their avatar again in unreal engine so it doesn't technically allow them to cross yet because we lack those standards but people already have those ideas which is why i'm so confident that somebody will develop the standards so you could do something like create an avatar but once you go into this particular combat zone then you have to pick a weapon from there um yeah this is how this is going to work it's crazy and so you start with these little islands and they will eventually have more and more connective tissue until finally it's just one big metaverse and so when i step back and thought what had the most versatility what was going to allow the most people to come together what had the most developers what was the most extraordinary technology i landed on unreal engine so i'm excited about sandbox because it's another place that's doing something creative in web3 but it wasn't where i wanted to place my bet fax next how will web pages change on web3 i am an aspiring web designer that thinks there could be an edge to designing for web3 but i don't understand if there is a difference yet okay so again focus on this idea of wallet aware so what makes a web3 web page web3 is that you can come to that webpage it will invite you to connect your wallet and then based on what's in your wallet you can get access to different things so we have one of our pages for holders of the impact theory founders key if you hold an impact theory founders key you can get access to ad-free versions of our content so you would go to our web page you would connect your wallet and then because you have one of our keys or if you don't have one of our keys it denies you access but if you have one of our keys it unlocks you can go in to that space and now watch the ad free content and there are going to be thousands tens of thousands hundreds of thousands of things in the coming decades that will be like that where you either get access or don't get access based on what you have in your wallet it will be really extraordinary so you want to think about okay i'm going to create this web page i'm going to communicate to the blockchain it's relatively straightforward and then what do i want people to be able to do and you can create these really exciting cool experiences based on that and again you can do different things based on what somebody has in their wallet so if you're looking at webgl at all this is something i'll predict in the future i haven't seen anybody do it yet but my instinct is that you'll be able to create these customized animated experiences so that if you show up to a webgl page depending on what's in your wallet will determine how things move and interact i think it's going to be really really extraordinary so again this is why i started this whole thing off by saying you want to first look at what does the technology do what does it allow you to do once you understand what the technology allows you to do then you can start really building for it but basically a web3 page is just something that can communicate to the blockchain which allows you to then look into the wallet you can do a read-only page where you're just reading what's in their wallet you could do read write where you can actually mint nfts and once you're minting and reading the possibilities are virtually endless all right here's a hard question how safe is web3 at the moment it is safe unless you let your guard down so the blockchain itself is pretty safe but man scammers go hard scammers go hard so you need to be really careful because while the blockchain the ethereum and bitcoin blockchains some blockchains are more susceptible than others but a well-engineered blockchain is virtually unhackable once it has enough network effect to have a lot of computers out there in a totally distributed way but humans make mistakes and so each of us are our own vulnerability and so i won't lie i sweat over web3 safety and i highly encourage all of you to sweat over web3 safety to really be thoughtful about what links you click because damn like the number of ways that people can convince you to accidentally give them access to your account is crazy so you really really have to be hyper paranoid as i say only the paranoid survive so yeah be thoughtful do yourself a favor do not click unknown links do not min unknown projects be extremely reticent to let anyone in your dms people will pretend to be other people people pretend to be me people pretend to me be me in discord they pretend to be me on whatsapp telegram like wherever they will pretend to be your favorite person anybody that you've communicated with and or haven't communicated with it's crazy so you really do have to be very very thoughtful because this is a moment where people haven't trained themselves enough to be diligent so while you might have your guard up in email because we've all been trained you better have your guard up in email but you might let your guard down in discord or on twitter so you really really need to be very careful be very careful i can't stress that enough the number of heartbreaking stories out there are just too many to name so be very very careful all right can you please connect d5 to web3 okay so d5 is decentralized finance it is a fascinating movement i would be a little bit careful it's early enough there's still people getting their hands burned uh it's early enough that there's not a lot of legislation and so people are getting uh sued is that the right word so companies companies are getting sued for um i'm not even going to save the for because i haven't looked closely enough at this and i don't want to say something it isn't untrue but i know that some very hefty fines have been given out for defy companies that are doing things that the sec warrants to be a security so just be very thoughtful do your research before getting into defy but the the whole idea is defy is leveraging the blockchain in a similar way to web3 just doing it for finance versus in our case um web3 being focused on entertainment but i would use web3 as a very encompassing term that would encompass d5 would encompass cryptocurrency so web3 to me is about ownership and participation so anything now that you can own and participate in for me falls under the umbrella of web3 so it could be entertainment it could be finance it could be medical records it could be a lot of things so that's ultimately the connection but defy is is a financial protocol that is almost certainly going to be the dominant way that we all save money in the future right now it is an unregulated uh wild wild west so be very thoughtful but it seems inevitable that that's where we're headed that people would be able to do what's called staking which is beyond the scope of this conversation for two reasons one i don't consider it a beginner's thing to do and two i don't do it and so i am very much not an expert but you could find a lot of information out there on d5 i highly encourage you guys to check out bankless they do a phenomenal job of creating great content around things like d5 so yeah check that out but that's d5 and it's connection to web3 all right next let's say ethereum just doesn't make it as a currency what happens to our nfts that were minted on that blockchain are they still safe forever okay they're safe as long as the blockchain exists and ipfs exists so ipfs is beyond the scope of the basics but earlier when i was talking about how you have this thing that points at this thing over here when it's pointing to this thing over here it's usually pointing at an ipfs server so if the project doesn't pay for their ipfs server then the thing that the blockchain is pointing to would become blank but as people have noted if that were ever to happen somebody could spin that back up because the blockchain unless the blockchain went down which would whoa be very it would require that the entire blockchain implode on itself which is possible i want to be very clear that if everybody stops believing in the ethereum protocol and there are no people that are securing the ethereum protocol then the ethereum protocol would for all intents and purposes cease to function given the network effects of how many people are securing the ethereum protocol and how much value there is in the ethereum protocol in terms of money invested that seems like a long shot it is definitely not impossible again i am not a financial advisor do your own research but it's highly unlikely so the short answer is yes it could collapse go to zero be totally meaningless cease to effectively function as a blockchain and everything that you had on it would be gone but i feel way more secure about the things that i have secured on the blockchain than i do say something in my house or my car which can be broken into so keep that in mind but if it didn't make it as a currency and the blockchain collapsed then yes it would go away and know your things would not be safe forever in that instance so it really comes down to what do you think are the odds and this is why i am focused on the top two biggest the ones that have the biggest network effects um it just is way less likely that they implode it's not impossible but it's way less likely so be very very thoughtful again only invest what you can afford to have go to zero i think that is the right approach to take at this stage or any stage i wouldn't buy more in gold than i could afford to go to xero so be thoughtful out there my friends all right those are some abcs of what's going on in the world of web3 i hope that you guys will go and learn about it it is extraordinary it is in the process of changing everything this isn't like something that's going to happen only in 10 years it's happening right now the amount of things that has already changed in my own life is extraordinary and then when i look at what we're building oh my god it's going to change everything so go learn about it my friends be out of the curve it will reward you i won't say richly because it is not a get rich quick scheme though some people are using it for that it is a transformational technology that is going to improve a lot of things in the human experience so don't be the last to the party go learn about what's happening in the web 3. all right everybody until next time my friends be legendary take care peace you can liquidate a billion dollars of bitcoin on the weekend in any currency you know any any time try liquidating a billion dollar building right that's three year process right so it's liquid it's fungible it's desirable that's what makes the asset valuable