Episode 072 - Investing to Build the Ownership Economy in web3, with David Pakman, Partner at CoinFund
Jan 15, 2024
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Venture capitalist David Pakman discusses non-consensus investing in crypto, NFTs, regulatory challenges, tokenizing real-world assets, decentralized AI training, and data value in web3 investments.
Tokenizing physical assets on blockchain adds liquidity and global access.
AI and crypto synergies can enhance trading strategies and smart contracts.
Regulatory clarity is crucial for blockchain innovation and Web3 development.
Deep dives
Bringing Real-World Assets on the Blockchain
The podcast episode discusses the concept of bringing real-world assets onto the blockchain and the value it can add. This involves tokenizing physical products or financial assets to make them purchasable on the blockchain. The benefits include increased liquidity and the ability to transact through tokens on a globally decentralized platform. Examples mentioned include tokenizing real estate properties or traditional financial assets like treasury bills. The potential for net new demand and the opportunity to diversify digital asset portfolios are highlighted as compelling reasons for this development.
The Intersection of Cryptocurrency and AI
The podcast explores the relationship between cryptocurrency and artificial intelligence (AI). While initially seen as buzzwords combined for marketing purposes, the discussion now focuses on the potential synergies and value creation between the two domains. The episode highlights Coin Fund's thesis on the intersection of crypto and AI, emphasizing the importance of deep learning models in crypto trading and investment strategies. The use of AI in developing smart contracts, data analysis, and project evaluation is also mentioned. The conversation touches on the potential of AI to enhance crypto-related processes and decision-making.
Regulation and the Potential of Web3
The episode delves into the regulatory landscape surrounding blockchain technology and its impact on the development and adoption of Web3. The discussion revolves around the need for regulatory clarity and supportive frameworks for blockchain-based innovations, particularly in the financial sector. The conversation recognizes the challenges of navigating the highly regulated environment, especially in the United States, and highlights the opportunities offered by jurisdictions outside the US that are more welcoming to crypto entrepreneurs. The potential benefits of bringing real-world assets on-chain are discussed in relation to technical efficiency and access to global markets.
Ownership of Digital Items and NFTs
NFTs allow for the ownership and sale of digital items, such as pictures, videos, and songs. This shift back to ownership models from access models, like Netflix and Spotify, is due to technology limitations in enforcing limitations on copying. NFTs provide a way to create verifiable copies of digital creativity, allowing buyers to truly own and resell the items. This return to ownership models is expected to lead to an ownership economy around digital creativity.
Decentralization and Democratization of AI
The current dominance of AI by a few large companies due to their compute power and financial resources can be challenged by decentralized networks. By creating a decentralized training network of GPUs, the cost of training large AI models can be reduced, making it more accessible to a wider range of developers. Additionally, a decentralized data collective could be established, allowing individuals to opt in and get compensated for their data, and enabling fair access to training data for AI models. These developments represent a more economically fair and open future for AI.
How do the worlds of cryptography, privacy, and AI relate? What is the promise of NFTs for building a user- and creator-owned economy? We dive into these topics and more with Ownership Economy Summit speaker David Pakman. David started his career in tech at Apple, and has been in venture capital for 20+ years at prominent funds Venrock and Coinfund, and was among the first VCs to realize what was coming in crypto and moved in early to back teams such as Dapper Labs, 3Box (Ceramic Network), and Rarible. David has been on the bleeding edge of the thinking in this space concerning user ownership of data, creator ownership and IP, and the building of an ownership economy.
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