Crypto

Why Web3

In the summer of 1993 I saw the World Wide Web for the first time and to this day it remains one of the most exciting moments of my life. The possibility and the potential was so obvious. This was a place where anything could happen, and everyone could see it. Over the next few years it stopped feeling like a destination and I no longer differentiated between “the real world” and “online” – it was all real and always happening, sometimes I was away away from my keyboard.

By the early 2000’s these amorphous blobs of content we were putting online started to find ways to work together. Small pieces loosely joined. We were on the verge of connecting everything and it was going to be incredible. Tech conferences felt like summer camps. All the people you’d met online coming together and hanging out in hotel lobbies. We put faces to names, and stayed up all night imagining the future. That feeling changed in 2004 when the O’Reilly Emerging Technology Conference was rebranded as The Web 2.0 Conference. e-Tech became Web 2.0, officially.

That year I ran into a friend outside of the conference. They looked upset, almost distraught. I asked what was wrong. They told me they’d just taken an elevator that was packed with people they didn’t recognize. They’d looked at name tags to try and find a connection and rather than seeing familiar startups or friend’s projects they saw SAP, Oracle and various banks. I said “so what?” They said, “When the money and enterprise guys show up, you know it’s over.” I laughed off the comment at the moment but thought about it a lot in the following years. That was the beginning of the end, at least of our dreams of anything being possible.

It wasn’t a night and day change and of course there was plenty of talk of “users” instead of “people” in what we now call the “dot-com era” or “Web 1.0” though we didn’t call it those things at the time. But Web 2.0 brought in the big guns. The focus became controlling what people could do, and owning their information. Our content, our data, anything they could get their hands on. This was the golden age of luring people in with free services and War and Peace length Terms of Service that no one read, so we didn’t realize how much we were giving up. Once we did, it was too late.

If you’ve been with me over these years you know I’ve been critical of Web 2.0. I have spent a considerable amount of time talking about the web and what we do with it, what we could have done, and where we went wrong. I had so much hope, and felt so much disappointment. Obviously I wasn’t the only one, which is how we found our way to Web3.

Web3 is not Web 3.0. It’s not a sequel or an update to Web 2.0, it’s a separate fork. You could maybe argue it’s a prequel but one informed by the errors of what was yet to come. While Web 2.0 was the fire started by sparks from the dot-com era, this a rewind and do-over with flameproof lining. Web3 looked at Web 2.0, saw the foundation was rotting and rather then renovating decided to build fresh on the plot next door. I could keep running with these analogies but I’m sure you get the point. When you see Web 2.0 talking heads steaming and stomping their feet that “NFTs and Crypto are not Web 3.0!!” they are right, but just not in the way they think. Web 3.0 was The Semantic Webit already happened and chances are you never even heard about it. Web3 is something else.

     Dialup ---> Dot-Com Era ---> Web 2.0 ---> Web 3.0
                     |
                     |----------------------------------- Web3

Web3 upends the power structures we’ve grown accustomed to and puts artists and creators back into the drivers seat. Without exception, every person I’ve spoken to who I know from my mid 1990’s internet adventures agrees this feels just like that. Suddenly there are possibilities again. Suddenly all options are on the table. Suddenly Anything can happen. It’s exciting. And scary. A little bit dangerous. It’s like the run down part of town where all the artists have studios because thats where they can afford lots of space. Sure you have to be careful where you park so your car doesn’t get broken into, but the creativity and inspiration around every corner is worth the visit.

After 2020 lots of people have been asking if there is actually a reason to go back to the office, to go back to a job they hate. Web3 is giving many of those people the ability to say no, they aren’t going to suffer through a 9-5 they hate just to barely scrape up enough to pay rent. Web3 offers a future where people are in charge of their own identities, not beholden to the whims of data hoarding corporations. People control their own accounts, own their own futures. Detractors are outraged that currency and wallets play a central part in this, but currency and wallets have always played a central role – the only thing that has changed is who benefits. It’s intellectually dishonest to pretend otherwise. In 1993 John Gilmore said “The Net interprets censorship as damage and routes around it” and in a way that is what has happened here, but we’re talking about an economy rather than censorship. The Net interpreted walled gardens and institutional lock-ins as damage. Web3 is a creator economy like we’ve never seen – by and for the people.

Now that may sound idealistic and is, admittedly. Proudly even. Because that’s what a reimagining should be. If you are going back and starting over you need to be idealistic, you need to believe anything is possible and that the best outcome is realistic. The unified, decentralized dream is sitting right in front of us. Of course it’s not assured, and there are no shortage of power hungry or greed driven actors trying to centralize things for their own benefit. We’re already seeing compromises billed as simplification. We’re seeing sour grapes from people who called this a trend or a scam and expected it to fade away years ago. There’s no shortage of self proclaimed early adopters who didn’t adopt this early enough and are mad that they made the wrong call. That’s OK, it’s to be expected. The good is the momentum is strong and things are moving in the right direction. The secret is it’s not too late. We are still so incredibly early. The surface has barely been scratched.

Another incredibly important thing here – the kids all get it. For every person over 40 arguing about the legitimacy of cryptocurrency or the value of JPGs there are 2 people under 20 who don’t even question it. Digital gold, a catalog of avatars and identities – this is the world they grew up with. It made sense in countless video games, why not everywhere else? And when you take into account that there’s been a financial crisis almost non-stop since 2001, with an ever growing list of shysters and conmen getting caught for decades of scams and frauds, or politicians getting pay offs, or secret back room deals where almost everyone gets screwed – the appeal of a public ledger for all transactions becomes crystal clear. The next generation is all to aware of the short end of the stick they’ve been left to hold, and they are simple deciding not to.

So if you are asking “Why Web3?” The answer is simple. Web3 is the future.

Avatars and Identity

My family moved around a lot when I was a kid. In fact I can date my childhood memories really well because I was in a different school almost every grade, so depending on which school or group of kids are in the memory I know exactly when it happened. This was the source of a lot of trauma for me (as soon as I’d make friends I’d move away and have to start all over again) which led to various trust and interpersonal relationship issues that I spent years working through, some better than others. This has manifested itself in various ways, one of which is that as you might know I’m deeply fascinated by and attracted to subcultures and communities – I never had “my people” as a kid, and when I finally found them in my high school years I never let go.

I gave a talk at the Academy of Fine Arts in Vienna once about my career, and jokingly said that bouncing from music to art to technology didn’t make any sense. The professor who had invited me to his class interjected that it made perfect sense, because the notable common thread through all my work isn’t the particular medium of the moment, but rather the community around it. He observed, perhaps better than any therapist I’ve ever been to, that in my work I’m always trying to build sustainable communities.Perhaps, he noted, because I never had a community growing up so I’m destined to spend my life chasing after them. Well thanks for that one there Prof.

But he was right.

I call myself a misanthoplogist which is only half a joke, most of the communities I dive into and immerse myself in are subculture, occulture even, and often skeptical of outsiders. Most of us are misfits and weirdos who didn’t fit in with the world we saw around us, so we built our own. Or since it’s so much easier these days, we found others like us and embraced the world they’d already started building. And once a part of this chosen family, which ever one that might be (or several concurrently, as I’ll get to in a moment) it becomes deeply important to us, shaping us as much as we shape it. We become the community, and the community becomes representative of us – our interests, our hopes, our dreams.

When I meet someone else from one of these communities out in the world we share an instant understanding and a bond that unless you are also part of that community, likely makes no sense. In fact, you might not even notice it. In this way, these friendships and communities become almost secret societies. Indeed, band logos, slang and inside jokes can map perfectly with some cryptic rune, sigil or foreign language. If you know, you know. If you don’t, you don’t. Forget music and just consider Hobo Symbols or Warchalking – just understanding what these markings mean puts you into a very tiny group. Now apply that same logic to graffiti’d gang tags or bumper stickers.

Those are physical world examples, but it should be no surprise to you that I’m heading towards the virtual. Years ago my ex-roommate brokep made a brilliant comment that he doesn’t use or like the then common abbreviation “IRL”(In Real Life) instead preferring to use “AFK” (Away From Keyboard) because in his perception, and for those around him, online was just as real as offline and the difference wasn’t which was real or not, but which had your attention at any given moment, and he didn’t want to perpetuate the false idea that things happening online were any less important or “real” than those happening offline. Ernest Cline’s Ready Player One takes this a step further by making the online more important than the offline, and the introduction of metaverses. I’ll get back to that shortly.

(A few of the NFT Avatars I own and use in various online communities)

My son has lived all around the world. I like to think this was a conscious decision informed by expert learnings and my own lived experience, but it could just as easily be repeating the same mistakes my parents made. Time will tell. But the point being at almost 12 years old he’s spent significant chunks of his life living in Los Angeles, Paris, Tokyo and now Vancouver. And he’s traveled to dozens of other countries in the interim. When I was a kid in the 80’s jumping from school to school in city to city, I often tried to be penpals with friends I’d made but that usually lasted one or two letters until we’d both forgotten about it. The internet changed all that as we know, and with my son any school he’s been in has been for at least a 3 year stretch and he’s stayed in touch with a number of friends regularly, for years now, in any number of online worlds, primarily Minecraft where he and his friends can actually build out a world that remains the same no matter where they are accessing it from.

Knowing how insufferable I am in these posts, you can only imagine how much worse I am in person. My excitement this year about NFTs has infected every corner of my life and this has rubbed off on my son who has his own collection and is an active member of several related communities. So here’s what I’m starting to get at – when I ask him, out of all the places he’s lived and all the places he’s visited, which is is favorite – he points out that it’s not such a simple question as all the places have pros and cons. He’s a smart kid. If we’re talking about food then one city might be better. If we’re talking about hiking or snowboarding or bike riding then yet another city might be better. If he’s talking about where his friends are, then he knows exactly which Discord server he’d pick. Online or offline are the same – they are just different places where he spends time.

I get that. A few years ago I played some World of Warcraft with him, which was a game I spent a significant chunk of time playing in the early 2000’s. Walking through those in game cities felt every bit the same as it feels when I visit a city I used to live in, or a favorite place to travel. I know what’s around the next corner and where to get the good food. So I assure you, he’s not the only one who feels that way. I know a lot of people in my generation and a little older who would think that sounds crazy. But this is the future, and the younger kids all get it.

So to connect this back around, Discord servers are communities. Cyber cliques. Digital gangs. Virtual families. This is real life in every way, and the relationships we form there are just as real. I need more than one hand to count the number of friends who have had marriages end because of affairs being had with people they had never met in physical space. That’s as real as it gets. But that’s beside the point, which I know I’m talking a long time to get to, but here it is – offline I can I look at you and know who you are, know if I know you or not. Online, I look at your avatar. And your avatar can be anything. And if your avatar can be anything then you can be anyone, right? Right. That’s equal parts liberating and terrifying. If you can be anyone, how do you know who anyone is? Or maybe more importantly, does that even matter?

Going back to Ready Player One again, in the metaverse people were able to create avatars that were the perfect versions of themselves. Who they wanted to be, without the limitations of their physical lives (like, how much money they have or where they lived). And, they didn’t have to be just one person – they could be different people for different situations. This begins to really pick apart the idea of identity – but again this isn’t new or exclusive to the internet in anyway. People have had secret lives and kept separate identities offline forever. We all know someone who acts one way at the office and completely differently outside of the work environment. Or what about LARPers or Furries or hardocre Trekies. Or what about punk rockers who put on nice clothes to go to a real job between 9-5. I’m being a bit obvious but you get the point – the notion of being different people in different contexts is a very normal thing, and doing that online with an avatar in a community just makes it even more… well, real.

Back to my son – in the communities he’s a part of, no one knows he’s a kid. That’s intentional on his part, because he recognizes that people treat him differently if they think of him as a peer. And yes to alleviate any fears we know what he’s doing and who he’s hanging out with, and have regular open conversations about safety around that – but we also respect his wishes and love that he has this ability to safely explore who he is, and who he wants to be. His identity is connected to his Avatar. His Avatar shows his connection to this community, and unlocks special membership privileges. His Avatar is also a unique digital object that he owns, because it’s an NFT. There are a few thousand others who hold NFTs from this collection and while they might meet each other on the project Discord, they can also recognize each other anywhere else on the web as well. It’s a digital band t-shirt.

This week twitter announced plans to add web3 integration to the site with two examples of how they are going to do it – they are going to add tipping with Bitcoin, and verified ownership of Avatars. Now, if you’ve been reading the news or following related headlines you might have heard about the Bitcoin tipping part but likely didn’t catch the avatar bit. This is because most of the “technology journalists” writing about web3 have no idea what is actually happening and are just looking for recognizable buzzwords to drive stories and Bitcoin is recognizable but NFTs and Avatars are confusing so Bitcoin drives the story and the Avatar bit gets a passing mention just so that all the boxes are checked. I’m not just making that up, I’ve spoken with no less than 10 writers at major publications in the last 2-3 months who have all had similar stories. “I’ve written about art/web/entertainment/memes before so my editor just told me to put together something about NFTs but none of this makes any sense to me, can you try to help me understand what is happening?”

But this is a legitimately big deal. “Why would I buy it when I can just right click and save it?” falls apart the moment wallet verification is introduced, and a social platform as large as Twitter recognizing that what NFTs you own directly relates to your online identity is the tip of the iceberg. People already spend a lot of time, effort and money crafting and curating their online persona – the dismissal that they wouldn’t buy an Avatar to signify their connection to a community or social standing is silly. That’s so obviously where this is all heading. And the natural extension of this is if your identity is tied to an Avatar, and you have many different Avatars then you natively have the potential for many different identities. I might use my Bored Ape Avatar when I’m on the Bored Ape Yacht Club Discord Server and then switch to my Punk Cat Avatar when I’m on the Punk Cats server. Other people who hold NFTs from both collections might do the same, and we might recognize each other and intentionally connect those two avatars into one identity – but there’s no reason at all that I couldn’t keep an avatar in a separate wallet and when I switch to it also switch to a completely unique identity.

So far I’ve been talking about forums and websites, but as metaverses like Cryptovoxels, Decentraland, Sandbox, etc etc etc begin to pop up and start intermingling the situation gets much more interesting. When we’re talking about virtual worlds and not just screen names, it’s an entirely larger thing.

As someone who has been using my real name online for more than 25 years and has spent way too much time thinking about how identity and reputation and positioning impact online interactions, this is mindblowingly exciting. Scary as hell, but inevitable and totally obvious at this point. I can’t wait to see what’s next.

Apes, Punks & Phunks: Adventures from the frontlines of the IP wars

Gather ’round kids, exciting and fascinating drama is afoot and you know you want to hear all about it. Assuming you are excited and fascinated by IP shenanigans, because really who isn’t right? While I want to just charge right into the theft and murder, oh yes dear reader there is theft and murder, I worry that I sometimes go to fast and leave people behind. So I’m just going to assume that you understand that copyright means the copyright holder (often the creator, but not always) retains all rights and no one else can do anything, and conversely public domain means no one retains any rights and anyone can do anything. Between those two extremes there’s a million miles of grey area which has been somewhat navigated by Creative Commons, who create copyright licenses that intentionally wave some rights while retaining others with the intention of fostering creativity and sharing. For example this blog post is published under a CC-BY license which means while I retain copyright or my words, I also allow anyone to use my words, expand on them or make derivative works and even sell that so long as they credit me as the original creator. Which is super totally cool. I’ve stumbled across my work in countless places, and people have ended up here because they saw something I wrote somewhere else and followed the breadcrumbs. Thanks Creative Commons!

OK, getting back to the juicy stuff. A very popular thing happening in the NFT space right now is for people selling large collectors of Avatars to grant commercial and derivative rights to anyone who buys those NFTs. I haven’t seen any using Creative Commons, because that would be easy and straight forward. Instead most often they have some hacky chopped together Terms of Service filled with rando copypasta from various other projects and it’s confusing AF. The gist being if you buy an NFT you can use it in other work and sell that work without issue. Essentially they are transferring the IP rights to the buyer, which has created a vibrant market for derivative works, and is helping fuel the overall growth of not just individual projects but also the entire NFT community and ecosystem. So this is a good thing.

But as we know, nothing is ever as straight forward as it seems. And this is where shit starts getting messy.

For a few months everyone was trucking along peacefully making derivative work of NFTs they bought that allowed such a thing, and everyone was happy and there were flowers and rolling fields of green grass and sunshine and then Taylor.wtf burned an ape. Taylor is an artist/musician/producer and also a shit disturbing agent of chaos. He’s a friend of mine and I say that as a high compliment and would encourage everyone reading this to aspire to such a description. In NFT parlance, “burning” something is to intentionally send it to a wallet that no one has access to—essentially removing it from circulation. When I say “an ape” I mean one of the Bored Ape NFTs made by the Bored Ape Yacht Club (arguably the hottest and fastest growing avatar collection at the moment). So he burned an ape and then put a video art project of that Bored Ape being set on fire up for auction on OpenSea (the largest NFT marketplace). At first people were just shocked that he’d burnt an ape (as they were trading for about $4k each at the time – though burning money is a long established form of conceptual art perhaps most famously employed by The KLF who literally burned a million GBP) but it got much more interesting when BAYC filed a DMCA notice and had the fire video taken down.

Still from Taylor.wtf’s Burning Ape

Their position was that as Taylor had burned the Ape before releasing the video, he was no longer the owner and thus no longer had rights to use the work. However! As they were not the owner anymore either it’s questionable about why they felt the need to intervene, which they clarified by saying they were doing so with respect to the current owner – and would do the same for any ape transferred from one party to another if the previous owner kept using it. However however! Since the ape was burned, by all understanding it has no owner, so whose rights were BYAC defending? No one came forward claiming to own that wallet and protesting, and no one could prove that the wallet wasn’t actually Taylors. Or, anyone else who might claim to own it. Point being, no one said “I own this thing and I object to how it’s being used by someone else.” Once this came to light it seems BYAC realized this was a huge steaming pile of shit they’d walked into, and cautiously backed out of it. The video was re-listed elsewhere without protest and remains online.

CryptoPunks

While Bored Apes are one of the hottest new Avatar projects, the grand daddy of them all is unquestionably Crypto Punks. It would just be bad form not to include them in this drama fest, luckily they are a magnet for it all. Let’s start with CryptoPunk #3100 – currently the highest selling Punk which sold earlier this year for 4,200 ETH or effectively just shy of $9 Million. There’s been much discussion about how an NFT is the token, and the image attached is just representative of the token – that is when you buy an NFT you aren’t buying that image so much as the digital token on the blockchain which is represented by that image. The conceptual artist Ryder Ripps decided to play with this idea by pointing out that the image representing the original CryptoPunks was a 24×24 pixel graphic entirely generated by a script. Ryder recreated #3100 by hand in 4000×4000 and minted it on several platforms. Same image on each, but each being a different token, different contract, and thus a different NFT. An interesting experiment that got much more interesting when Foundation was served with a DMCA notice by Larva Labs, the company who made CryptoPunks, and were forced to delist Ryder’s NFT. One might think “serves them right, that was obviously plagiarism” and many did in fact think that, but it seems many people don’t know about fair use and parody and this is where it got much more interesting- Ryder appealed the take down. You see, under the DMCA, a copyright holder can issue a take down notice to any service if they feel their IP is being infringed upon and the site has to immediately remove the infringing work, however if creator of the work that was taken down believes the action was erroneous, they can file an appeal and this puts the onus back on the company or person who filed the DMCA notice originally – and they now have 10 days to file a lawsuit supporting their claims – if they don’t they then are essentially conceding that they don’t have the legal position to support their initial action and the site in question is free to reinstate whatever was taken down. And again, because US Copyright law does specifically call out fair use and parody, Larva Labs backed down and Foundation has just reinstated Ryder’s Punks.

Rider Ripp’s CryptoPunk #3100

This is a pretty decisive victory and will likely be taken into account going forward, however there’s another very related situation at play that was going on before all this went down and came to a head before this was resolved. Enter the CryptoPhunks. Who make it very clear in their manifesto that this project is social commentary and a parody aimed at “flipping off the punks.” While Ryder essentially just scaled up the image of a punk in his work, the Phunks actually changed the art. Is it a significant change? That’s up for interpretation but when you are talking about a source image that is only 576 pixels to begin with, how much of a change is needed for it to be significant? Most notably, while all 10,000 CryptoPunks are facing right, the CryptoPhunks are facing left. While this was criticized as a “low effort rip off” by more than a handful of people – it’s an obvious enough difference to be immediately identifiable something that could not be said about Ryder’s Punks. But wait, there’s more! In addition to the flip, CryptoPhunks added a 1 pixel wide outline to the box the Phunk sits in, which is an unquestionable artistic change. Again, we’re talking about a 24×24 pixel image, so very subtle changes are actually pretty significant. You might think these changes made things easier for them, but you’d be wrong. The first take down of the Phunks happened almost as soon as they launched in what seemed to be an editorial decision on the part of OpenSea where they were listed. To their credit OpenSea has been working to take down fake accounts selling fraudulent NFTs and it’s unclear if they understood that CryptoPhunks was a stand alone project and not something misrepresenting itself as official, and this take down appears to be have preemptive and hasty.

CryptoPhunks

After much community uproar OpenSea reinstated the Phunks account and heated discussion started happening on Twitter which involved many CryptoPunk owners disparaging the Phunks and calling the project a “low effort rip off” or “blatant plagiarism.” Ironically, those are “low effort” criticisms that fall apart as soon as you read the project’s mission statement, because while it might not be something that is creatively appealing to everyone, it definitely has some thought and intention behind it. As noted earlier many people in this space don’t seem to understand how copyright or IP works or is applied, or the importance parody and fair use have in culture which can be seen in the reaction to the Phunks from the “NFT community” (if there is such a thing) at large. But things did not end there, OpenSea pushed back with several statements from employees on Twitter which imply they see derivative projects as somehow lesser than original works, and the longer term viability of the Phunks future remained in question. This didn’t slow sales at all, and it’s entirely possible that the vocal outrage from CryptoPunk owners actually served as marketing for the Phunks. Which, again, was kind of the whole point. The Phunks laid a trap and the Punks walked right into it. It kind of reminds me of a time when a music critic friend of mine got punched in the face by the guitarist of a band he’d recently accused of being brainless thugs. Anyway, having freshly filed their DMCA takedown against Rider Ripps, Larva Labs repeated the effort and sent a take down notice to OpenSea, who promptly removed the Phunks from their site. Again.

It’s unclear if the Phunks team submitted an appeal like Ryder did, though it seems pretty clear if they did Larva Labs would have to back down here as well. Guess we’ll see in a few days as that clock runs out. At the moment the collection is still not viewable on OpenSea, but they are live and for sale on Rarible and Cargo. And in case you’ve assumed that these are just cheap knock offs, let me assure you they are selling for very real numbers to very serious collectors who recognize the cultural significance of what’s playing out here. Longtime readers will know that the intersection of parody and copyright is of personal interest to me and I’ve have my own run ins with companies trying to shut down protected speech. In the 20 some years since that showdown with the Associated Press I’ve watched similar situations play out time and time again, and it’s amazing how poorly understood the law around this subject is – and not just from the companies involved. I saw a number of people in the CryptoPhunks community criticizing OpenSea for taking down the CryptyPhunks collection after they received the DMCA notice from Larva Labs. They were accused of “old thinking” and “clinging to stupid Web 2.0 ideas” which is honestly as ignorant as accusing the Phunks of being “low effort rep offs.” While it’s fairly well understood that the DMCA is a bad and broken law– it is still a law and companies operating within the US still have to abide by it regardless of how any individuals personally feel about it. But as Ryder illustrated, it can be fought and that’s what the Phunks should be doing. The idea of a company with no physical presence bound by no jurisdictional laws is certainly interesting, but it’s not reality and probably not a great idea if you dig deep enough into it. But these situations are most likely the beginning and not the end, as more NFT projects grant certain rights and others don’t, and companies and marketplaces try to figure out how to navigate through this mess I expect more showdowns in the future. In the end, this is all a result of creativity and challenging norms and expectations, pushing boundaries and seeing just what new things we can build on top of old structures before they crumble. I’m excited to watch it play out, as a spectator and participant.

Wallets + Exchanges

I set up my first cryptocurrency wallet about a decade ago. I’ve done it a dozen times or more since then and it’s still confusing. Since about half of those wallet setups have happened in the last 6 months and the number of people asking me how to do it is growing every day I thought it would be helpful to document and explain some of what I’ve learned along the way and hopefully help smooth out some of the learning curve speed bumps. I’ll be talking about Ethereum Wallets and Mac/iOS apps though much of what I’m saying should apply elsewhere too as a lot of it is browser based as well.

The first and most important thing to understand is that Wallets and Exchanges do different things. Though since some exchanges offer wallet services and some wallets now have built in exchange options it gets messy quick. So while there is overlap, I try to think of (and encourage others to think of) them as separate things. Hopefully the following will de-mess-ify things a bit.

Public/Private key: This is what everything is built on when we’re talking about cryptography and cryptocurrency. Very simply: Your public key is your address that you give people so they can send things to you, your private key is the secret thing you keep which allows you to receive what is sent to you. If you loose your private key, you loose access to your assets.

Wallet: As the name suggests a wallet holds your assets, however this gets immediately confusing as your assets are not actually inside your wallet, rather your wallet keeps your private keys so that you can access your assets which are on the blockchain. Remember that with public ledgers/blockchains the ongoing updates just document who holds/owns what but there’s no asset actually traveling to you (like an email) rather the assets are being allocated to different wallets all the time on the blockchain, and if you have the private key to a wallet with an asset then you can choose what to do with that asset – such as send it somewhere else. This is why if someone gets ahold of your private keys they can steal everything from you, and why a wallet that protects your private keys is so important.

Wallets are either custodial or non-custodial, which means either you hold your own private keys or a company holds them for you. This is where the the saying “Not your keys, not your coins” comes into play as technically any assets you have in a custodial wallet could be seized, frozen, stolen, lost, etc and there’s nothing you could do about it, and there’s also risk of policy change at any given moment so the operator of the custodial wallet could decide that you have a 10 day waiting period on any withdraws or impost a limit on how much you can move around per day and since you don’t have your own keys you are 100% at the mercy of the people running that software. As a benefit though if you don’t have your own keys you cant lose or forget them. With a non-custodial wallet you manage your own keys and make your own decisions. Of course if you are sloppy with your security and someone else gets ahold of your keys you can still lose everything, but for a lot of people the risk of losing things because they made a mistake themselves is much easier to accept than the risk of losing everything because of legal or business decisions happening outside of their control.

Metamask is the most popular non-custodial wallet largely because it’s just a browser plugin so it’s really simple to set up and use. If the idea of having a wallet in your browser doesn’t sit right with you, Rainbow is my favorite non-custodial iOS software wallet (which will require you to do some pairing / QR Code scanning to sync with websites). If you want a totally separate air gapped hardware wallet then the best bet is really to buy a Ledger. Though if you are just getting started that might be overkill depending on how much crypto you plan to buy and/or hold. All three of these options have partnerships with exchanges that allow you to buy crypto assets from inside the wallet. Here’s where it gets a little confusing, Coinbase Wallet is also a non-custodial iOS software wallet, which is a different thing than Coinbase which is an exchange that offers a custodial wallet service, similar to Binance or Blockfi or Crypto.com. Coinbase and Coinbase Wallet are owned by the same company and can be set up to work together, but can also be used separately or independently.

Exchange: The primary function of an exchange is, again as the name suggests, to exchange your crypto assets for other crypto assets. Centralized exchanges require you to move assets from your own wallet to theirs first (or buy them directly through their system) while de-centralized exchanges (also called a DEX) will just connect to your own existing wallet to authorize the transaction on the fly.

Coinbase, which I already mentioned, is an example of a centralized exchange. To use Coinbase you need an account, and you likely have to go through some KYC (Know Your Customer) verifications like uploading your ID and proving you are who you say you are and you live where you say you live. You’ll need to either buy crypto assets through Coinbase (and depending on your level of verification you may only be able to buy a small amount each day) or send assets you already have to Coinbase before you can do any kind of exchanges on Coinbase. Uniswap is an example of a DEX. To use Uniswap you just connect your wallet and make your transaction – Uniswap doesn’t need to know anything about you. Coinbase only lets you exchange some assets and offers some level of protection, while Uniswap lets you exchange anything and you are on your own. There are different reasons why either option might be better for you for any given situation but that’s a different article and for the moment let’s just recognize that most people will likely end up using both options at different times for different things.

That was a lot, I know. But you now understand this better than probably 99% of the population.

There’s a few more things. While Metamask is fast and easy, you really don’t want it to be your only wallet. You’ll want to keep enough in it for transactions and impulse buys, but for anything more significant it’s probably better to put it somewhere else. That’s why I like the Metamask + Rainbow combo (or + Ledger if you are getting serious). But here’s some things to note:

When starting any of these apps you will be given the choice to add a wallet or create a wallet. If you have a wallet already and want to use the same one then you will choose “add” and then you’ll need to put in your seed phrase. Wait, what’s a seed phrase? When you create a wallet you will be given a seed phrase (a list of 12-24 words). THIS IS SUPER IMPORTANT. Write it down. Protect it. That seed phrase will allow you to rebuild your wallet should you lose access to it. It will also allow anyone else to rebuild your wallet if they are trying to hack you – so don’t put it anywhere someone else might get it. Don’t put it online, don’t put it in a shared note app, don’t put it on a post it note on your monitor. Lock it away somewhere safe. Treat it like a secret password to all of your money, because that’s what it is.

Rainbow will let you add or create several wallets which you can switch between easily for different purposes. Metamask will only give you one wallet, though it will allow you to create different “accounts” which are subsets of the one main wallet. That’s super confusing, I know. Let me draw you a picture:

Don’t ask me why it’s like this, companies just do weird shit ok?

It’s likely that you’ll want a wallet that is accessible from Metamask AND Rainbow, so create it first with Metamask and then using the seed phrase add that to Rainbow. If you do that in the other direction, Rainbow first and then add to Metamask it will replace anything you previously had in Metamask. Trust me here, it’ll save you a bunch of headaches later. Metamask first, then add it to Rainbow. I know more than one person who accidentally wiped their Metamask wallet because they tried to add another wallet later and couldn’t remember where they wrote down their Metamask seed phrase. Just to keep adding more layers of confusion there’s also a Metamask iOS app which you can use to import your Metamask wallet from you browser and that will allow you to authorize various websites from it’s built in mobile browser as well. That might be too much for right now, but just know it’s possible.

That was also a lot, I know. And there’s so much more, but that’s enough to get you going and allow you to start using Web3 websites which use a wallet instead of a login for your account management. Also, having a wallet does not automatically mean having crypto, so you’ll still have to get some, but that’s a whole other thing that I’m not going to walk you through, though Coinbase is probably the thing most people use at least at first. So if you are just starting, you can start there.

Collectors + Investors

I woke up this morning to messages from several friends directing me to this tweet, asking my thoughts. Unsurprising, as anyone who knows me probably knows I’d have more than a few thoughts on something like this. I started thinking of snarky replies or gotchas that I could cleverly post and trust me dear reader, there were many that came to mind. But the more I thought about it, and read the replies from artists who seem to be bending over backwards to agree in hopes that the tweets author might check out and buy their work, I thought it would be better served with a more thoughtful response to illustrate why this is so problematic. Also, I would like credit for my display of maturity and restraint in not just posting a snarky reply. Sean from 20 years ago is wondering who the hell has hijacked his blog right now.

As an art dealer, I would refuse to sell art to someone who came in to my gallery and made a statement like this. I don’t say that hyperbolically – when I had a gallery this was a topic that came up from time to time and we were unapologetic about refusing to sell work to anyone who asked questions like “how soon will I be able to sell this and double my money?” or “do you have anything that will match my couch?” Additionally I’d actively and vocally advise artists to avoid selling work to someone with this approach because while a sale might be nice today, in the long run buyers like this will most likely make decisions later that will negatively impact the artist. And if you think of art as a long term thing, as I do, selling to a buyer like this is basically failing the marshmallow test. This is investing in the art and not in the artist. To me, the artist is always more important than the art. As an art dealer, I wanted to develop long term relationships with artists and watch them grow, and help out where I could. I wanted to look back on my life and the careers of artists I worked with and be proud of what we did together. This artist-first approach wasn’t always the best decision for the profit margin of the business but it allowed me to sleep well at night, and that 15 years after the gallery closed I still count many of the artists I worked with as close friends tells me I made the right decisions. As a dealer, I worked for the artists not the collectors. I wanted the value of the art to go up just as much as anyone else (and it has) but I deeply believe that this happens much more reliably by making decisions that are in the best interest of the artist, and selling to someone who only sees art as an investment simply isn’t.

As an artist, I would be disappointed to know that someone bought my work and didn’t want to be thanked for it. I would be sad to learn that they didn’t have any interest in supporting me or my efforts. This statement is both hurtful and dehumanizing. It says that this person sees artists as nothing but a factory to crank out things which will make them money. Amusingly this is one of the reasons I eventually got out of the technology start up world, which I wrote more about in The Interest Driven Life, but I couldn’t stomach having meetings with venture capitalists who didn’t give a shit about me or my dreams or my goals and only wanted to know how much money I was going to make them, and how fast. Now, I’m not knocking this kind of investing approach – I just think there are ways to do it which don’t hurt people. Invest in shitcoins or flip some Bored Apes. That doesn’t hurt anyones feelings, or make anyone second guess their life choices. I guarantee you no one at LavaLabs is going to be suicidal because someone is rage tweeting that their Meebit hasn’t doubled in value yet. Pure investors don’t understand (or care about) the difference between artwork and a collectable, between individual artist and for profit company.

For most artists I know, just admitting you are an artist is unspeakably hard. It’s a position filled with self doubt, insecurity and questioning choices, but deep down we do believe in our work and our vision and have to trust that somewhere out in the world someone recognizes and connects with that. I make art to tell stories, and find connections, and find communities, and build relationships. Not to make some investor money. I do recognize that I’m in a position of privilege to be able to turn down sales that I don’t think are a good fit, to people who I don’t like. Not everyone can do that, but that’s also why I try to forge the path so that it’s easier for the next group of artists. And I’m pretty sure I can confidently say that standing here at 46 years old, everyone who has bought my work in the last 20 years has done so because they either wanted to support me personally or because my work meant something to them personally – and I’m deeply thankful for that. I would sell my work to someone who loved it and planned to keep it forever over someone who was hoping to sell it at a profit any day.

As an art collector, I despised buyers with this kind of an attitude. Selfishly, because they usually had more money than me and would buy things I loved and it pained me knowing they didn’t actually care about them. I much prefer the Vincent Price / Dennis Hopper approach which comes from recognizing the value that the artists bring to the world, to culture, to society and trying to support that. I forget where but I saw Hopper speaking once and he said something like “If you do it right, being an art collector means you are just a care taker” going on to say that he saw his job as protecting the art he bought until the “real art” world recognized it and made space in museums for it. He says something similar at the end of this short video. He viewed collecting art as documenting a culture and a community. I visited his house in Venice Beach once and and stepped over carefully rolled up Basquiats in order to get a better look at framed photographs by artists I’d never heard of hanging on the walls. His love for the art and for his friends was unquestionable, and it made me feel so much better about my own collection which is almost entirely work by friends. Some of whom I knew before I bought the work, some of whom I became friends with after buying the work. To me, those relationships are so much more valuable than any individual piece of art, but often the art is a physical representation of that relationship. The context is different but I’m reminded of the lyrics to Softcore by Jawbreaker which accuses “They just want the wrapping, They throw away the prize.” As a collector who values and appreciates the culture and the community, it pains me to know that work is sold to people who don’t care about any of that. I understand why it happens, but I don’t have to like it.

To be clear, I don’t think this is a zero sum topic. You don’t have to care about the artist, or your investment. Someone can care about both the value of their investment and in the artist that created the art, and I’d wager to say most people buying art fit into that category. But a comment like the one above represents a hard far end of a spectrum which I can only sum up as “bad.”

When we’re talking about NFTs, which we often are these days, there is a tendency for investors to lump everything together. They see no difference between something created by hand or something created by an algorithm. This illustrates their deep misunderstanding of both art and NFTs. I think this is actually a dangerous mindset which can actually harm artists and communities, and would recommend steering clear of buyers with this approach. This is a brand new world and the collectors who love the art and want to build the community are still showing up every day. Let’s embrace the people who want to build something together with us. We don’t need to make sacrifices to make people who don’t care about us rich.

Blockchains As Social Archives

I’ve been thinking a lot about the transparency that comes along with transactions happening on-chain. Especially with art this takes some big steps to demystify a lot of what happens behind closed doors in the traditional art world, and the benefits to artists are obvious. While this doesn’t solve every problem, it’s the right steps forward for many. Shining a light onto this part of the business takes a lot of the power away from the dealers and puts it directly into the hands of the artists. It also makes the collectors who are more interested in flipping work a little easier to spot. Obviously this makes some dealers and collectors uncomfortable, but that’s how you know it’s progress. When the people who have traditionally held power start seeing the cracks in their structures, they start complaining.

Conversely, this is also really good for the collectors who are focusing less on the investment and more on the artists. The philanthropists and art lovers. Public ledgers make it much easier to know exactly what an artist wants and needs for their work without having to navigate through multiple layers of middlemen which has typically been the case. Even when dealers would put artists and collectors into direct communication, many were afraid to talk “business” out of fear of alienating a gallery or dealer who might feel threatened or cut out, and thus losing that resource for the future. Again, not every problem is addressed, but this is movement in the right direction.

But I think there’s an even more interesting aspect that hasn’t been widely discussed. We all know that the blockchain provides concrete provenance for the work, we’ll now be able to see everyone who owned the work going all the way back to the moment the artist minted it, or look ahead and find where something ended up. This is exciting because artists often lose track of where work goes once it enters the secondary market, unless the new owners are committed to being public about it, which many aren’t. We’ve all been talking about that for months, but another potentially fascinating detail is the ability to see everyone who ever tried to buy a work. The losing bids, the rejected offers – those are on chain too. At the moment we’re focusing on acquisitions and winning bids, but the story that gets us to that point is far more layered.

Imagine being able to look back in history and see everyone who ever tried to buy a Warhol, or a Basquiat, or a Haring – before they were popular. We know who ended up with the significant works, and work is being done by their foundations to fill in the blanks, but that focus is entirely aimed at knowing where those works are now. But consider how interesting it would be to be able to see the unsuccessful offers. To be able to cross reference those people and find someone who tried to buy work from all three of those artists, but didn’t. Then, being able able to see what work they did buy. Are there artists from that area that have been flying under the radar all these years? Did someone repeatedly get out bid by a specific rival? Were artists supporting each other?

I’m thinking about these on-chain transactions, documenting the bid history as a snapshot of community. Let’s talk about right now. A number of artists who are selling work in the NFT space are talking about how they are reinvesting their proceeds back into the community. They are putting some % of the crypto they make from sales back into the market by purchasing works by other artists. It’s been obvious to anyone paying attention that there is a huge (and important) overlap between people selling and buying work. Collectors are also selling their own art, artists are also collecting their friends work. That’s powerful today, but how about in the future? Think 20 years from now, being able to look back on a sale today with a bidding war between friends. This is evidence of a social network, and the power of a community. This of the forensics this will allow as well – being able to see the exact moment that an artist started gaining momentum. Or pinpoint a single collector who funded an entire group of artists with a buying spree, and how those artists in turn lifted others up with them. We’ll be able to see friend groups and shared interests – and divergences. Again, that’s pretty interesting today but it monumentally more so if a relatively unknown artist today blows up in the coming years.

Today we’re focusing on what all this changes and what is suddenly possible, but it’s all new in so many ways and I think we’ve only scratched the surface on how much this all will really change. I can’t wait.

The Crowd and Social Tokens

Longtime listeners likely know about my newsletter which is called The Crowd, or Just Another Crowd if you want to be super proper about it. I started it in 2013 when my friend John Bracken said something like “Hey Sean, is there some place you keep track of all the different and interesting things you talk about on Twitter?” There wasn’t, and until then I hadn’t considered that anyone would want such a thing because I talk about a lot of weirdly different things all the time. Until then I’d assumed that the technology people who followed me only cared about the technology stuff I was talking about and was annoyed by everything else, and that the art people who followed me only cared about the art stuff that I was talking about and was annoyed by everything else, and the music people who followed me only cared about the music stuff I was talking about and was annoyed by everything else, etc. You get the idea. It hadn’t occurred to me that technology people might be interested in art stuff, and music people might want to hear about tech stuff. Or that anyone simply thought “I never know what Sean is talking about, or is going to talk about, but I’m pretty sure it’ll be interesting.” Turns out a lot of people thought that. Anyway, this newsletter became a place where I could stream of consciousness ramble about things that happened to catch my attention. No set schedule or topic or length. Over the years I’ve wrestled with that myself wondering if I should make it more focused to better market it to a wider audience and I’ve always come back to “fuck that” and realizing the value of it is that it’s a group of people who are open to lots of topics, not always ones they agree with or care about but they trust me to point them in interesting directions, or provide a point of view they hadn’t considered. I myself like things like that, and I’m glad the newsletter has found people with similar thinking.

Anyway, over the last 8 years I’ve sent more than 250 emails to that list and I think subscribers would agree no topic has been off limits. Which makes it that much more amusing when someone rage quits because I said something they disagree with, or ventured into a topic they are uncomfortable with. I like that it’s kind of become its own filter in some ways.

Recently I’ve been thinking a lot about social tokens, and I say that knowing half the people reading this will be nodding and the other half will be WTFing. Social Tokens are kind of currency, but social rather than financial. More about reputation, membership or standing within a community, less about money as we normally think of it. While there’s lot of ways this can be used, what I’m most interested in is a token that, by holding it, grants you access to a community or represents your support of that community. Which you could buy (boring) or earn (interesting!) by engaging in actions connected to or endorsed by or in support of said community. Friends With Benefits is a good example of some of this and a perfect example is that in order to get access to the FWB Discord server you have to own a certain amount of $FWB tokens – which you can buy, earn, or be given. Inside the discord, everyone knows if you are there you are either financially supporting the community or you’ve done something that another community member found valuable. It’s not a perfect system, but it’s interesting and we’re all still learning as we go. I’m talking to other people about what they might do with their own social token and as I have a bad (or good) habit of using myself a guinea pig I started wondering about how I might use them as well. Which of course makes me wonder what my community is? And that of course leads me to my newsletter.

So with that in mind, I’ve gone ahead an issued $CROWD tokens. Or $CROWD coins if you prefer. $CROWD is a standard ERC20 token. You can read all about it and how to set your wallet up for it on this page.

I used a service called Coinvise to set this up. It was limited, but fast and easy and free. If you have an account there you can follow me. This is not the only way to do it of course. You could also write your own contract using this wizard provided by Open Zeppelin. That option is feature packed and super customizable and after many many many hours of fucking with it I couldn’t get it to validate. I’m sure someone much smarter than me would have no problem. That’s also free. There are other paid services that will do it for you that have different options at different price points, but obviously I considered all of these options and decided Coinvise was the way to go. For me. For my purposed. YMMV.

Look, I’ll be honest – I rarely have any idea why I’m doing things, but often figure that out along the way. I think this moment, right now, on the web is more exciting and has more potential than anything I’ve seen since the late 90’s. I feel like we have a chance to correct a lot of the mistakes that were made during Web 2.0 and I think social tokens will play a roll in that. What roll exactly remains to be seen. If you own some $CROWD right now that’s basically bragging rights and not much else, it means you know me and I gave you some. In the near future it might give you access to special channels on my Discord server. The NFT Marketplace OpenSea now supports Matic, so in theory I could sell some NFT’s there and only accept $CROWD as payment. There could be special websites that you can only get into if you are holding $CROWD. Before too long it could mean someone else gave you some for some other reason. The potential uses are limitless and I’m just starting to explore and experiment with it. If you’ve made it this far, that’s probably why you are here too. I think this is going to be fun, and thanks for being part of The Crowd.

For NFTs, Twitter Is The Marketplace

Last month NiftyTable published stats showing that more than half of the traffic going to the major NFT sites was coming from Twitter. At face value, that means more than half of the traffic across several sites for essentially an entire industry coming from one site… that’s insanity! But we need to consider a few things to put that into context. Traffic stats mean people are very regularly clicking links on one site and being taken to another. Not just once, but all the time. This would primarily be driven by discovery, new people finding new artists they are interested in learning more about. Now there are unquestionably lots of Discord servers filled with NFT discussions, but those are largely contained groups who follow each other on the NFT platforms as well, so there’s not a lot of discovery going on beyond the first introductions. (Some of you will note that discoverability is the number one thing I’ve been saying NFT platforms need to work on.) Facebook as well has some chatter, but again it’s not really a place people are discovering new work so much as seeing work from people they are already following or connected to.

Conversely, sites (or apps) like Clubhouse, Instagram and Twitter are more outwardly focused – that is, unless you have a private account, one of the features of these platforms is that they potentially act as a megaphone and can show you off to a much larger audience than you might have on your own. One might think that Instagram, being a primarily visual platform might be the most useful here when it comes to new artist discovery. Similarly the sheer number of Clubhouse rooms dedicated to giving new artists space to talk about or “shill” (I hate that term) their own work would suggest that a lot of discovery is happening there. That said, Instagram and Clubhouse are similar in that they don’t allow linking to other sites. You simply can’t post a clickable link. This means even if you do post (or talk about) a link someone needs to either retype it or copy and paste it into another browser tab, in which case traffic statistics would not know the origin of the that click. So I suspect it’s highly likely that traffic being driven by both Instagram and Clubhouse is being significantly underreported. To what extent it’s impossible to say, but the assumption that no real traffic is coming from those sites is probably incorrect.

But it’s not just technical luck either. No matter how that gets refactored there’s no getting around the fact that a lot of traffic is coming from Twitter, and there’s a reason for that. Clubhouse is fleeting – if you aren’t in the room you miss it. Instagram is more portfolio-ish, comment threads are silo’d and sharing work that you find and like is difficult. Instagram is also afraid of female nipples, among others things, which results in a lot of self censorship and a lot of posts being taken down for violating “community guidelines.” While not all art has nipples, some art does and if a platform is restricting what some artists can do other artists are going to be cautious about using it, even unintentionally. Twitter is non of those things. Sure it’s ephemeral to a degree, but you can easily search and find older posts and connecting different people and disparate conversations is a snap. And showing off artwork, your own or others, is really easy. And it’s also now, in that when there’s a hot topic of the moment, whatever that moment is, everyone knows they can go to Twitter and talk to people about it.

And it’s not insignificant that none of the NFT platforms really have a way to connect with people. Sure you can follow artists you like, sure they will shuffle you along to their Discord servers, and sure some are promising that they have a social component in the works, but right now onsite, there’s nothing social happening. So people go to Twitter, because that’s where all the social is happening.

I was one of the first 140 people to join Twitter in 2006 and a quick look at my archives shows that as much as I’ve loved it, I’ve been critical of the platform for a very long time now. I’ve come close to leaving several times. But I’m still there and I still use it because as annoying as it is for somethings, it’s incredibly valuable for others. Being able to engage with a community is one of those valuable things. As you can imagine after being on a site for 15 years, people ask me all the time if they should be on Twitter. These days, and for quite some time now, I most often tell them no. In general with social media I think it’s better to not do something than to do it poorly, and to do Twitter correctly you need to invest time in it. This is something most people are not willing to do. They want to create an account, post something once or twice a month and then suddenly have thousands of millions of followers. That’s simply not how it works. You have to be engaged, invested, and understand the social norms of the place. So I’ve told people that if they’ve already been on Twitter and have a community there then they should use that, but if they don’t not to bother trying to start at this point.

However.

I think my position on that has evolved in the recent weeks. It’s becoming more and more clear that the vast majority of the discovery, commentary, meta-commentary, community engagement and (barf)networking is happening on Twitter. Not just randomly, this is where people are asking for recommendations, where introductions are being made, where friendships are forming and where connections are being made. Which, oddly, is what Twitter used to be really good at before it got distracted by trying to be “where breaking news happens” or whatever crap marketing line they were using was. Now, my earlier position still holds true – if you aren’t willing or able to commit several hours a week at the very least to interacting with people on Twitter, that is not just posting, but actually engaging, then I still don’t think you should use the site. But if you have an account already which you just aren’t using, or you are willing to put in the work to build up a new one, there’s really no better place right now for interacting with other artists, collectors, and various people of similar interests. It’s not make or break, but it’s noteworthy enough and a shift in what I’ve been vocal about so I thought it should be mentioned. Hope that’s helpful.

And of course if you are on Twitter feel free to follow me, and if you are interested in NFTs of my photography you can check them out here.