Web3 School

Web3 School
iscream, Inc.
April 2022

• Creator Economy
• Decentralization (Blockchain)
Mission
Focus
2018 2019 2020
Hardware wallet Blockchain-based Personal Data Store
2021
• Developed
MVP
2
Copyright © iscream, Inc. All rights reserved.
Taiki Narita
Founder/CEO
• Before iscream, strategy and BizDev for a
social talent agency AlphaBoat LLC.
• 10yr+ experience of M&A and startup
investment at Tokyo & New York in Sumitomo
Corporation
• MBA at Harvard Business School
• M. Eng. at Tohoku University
Empower individuals in the world to maximize their value
All-in-one solution of online
school operation
Product
https://coperi.app
@ naritaiki
mirror.xyz/naritaiki.eth
note.com/naritaiki
iscream, Inc. - Who we are
iscream is a service developer of Web3 related fields including Crypto/Blockchain, Creator Economy, etc.
• Developed MVP of PDS app and
done PoC test
Online school service
• Started developing • Launched
1st product
• Selected by 500
Startups KOBE

1. What is Web3？
• Background
• Blockchain
• Smart contract
• Data ownership/Data access
• Web3 Stack
2. Market Landscape
• Overview/Market size
• NFT・DeFi・DAO
• Upcoming service model
3. Notable contexts of Web3
• Token economy
• Culture
• Moat
• Product development
• Investment

Background
4
1.0 (ʼ90-ʼ05) 2.0 (ʼ05-ʼ20) 3.0 (ʼ21-)
TCP/IP, TLS/SSL
HTTP, SMTP
Portal site
E-mail
Attention Economy
Democratization of
information
Broadband, 4G,
Cloud computing
SaaS
Blog・ SNS
Gig Economy
Decentralization of information
Centralization of value
Blockchain,
Edge computing, VR
Crypto asset, Dapps (DeFi, NFT)
Metaverse
Creator Economy
Decentralization of both
information and value
After invention of Word Wide Web, internet has been an essential infrastructure through protocol development
and increase of network speed. Now facing big problems, Web is shifting from 2 to 3 rapidly.
Killer
products
Technology
New
economy
Paradigm
shift
Movement of regulation for data
protection
e.g. GDPR and CCPA started in 2018
Rise of criticism to expensive fee and
restriction of use by tech giants
e.g. Lawsuit of Epic Games to Apple
Privacy violation
User data leakage and breach by tech
companies
Problems of Web 2.0
Monopolization of value
Limited tech giants monopolize value by
dominant bargaining position

Why are Web1 entrepreneurs passionate about Web3?
Source: Pantera Capital
“Decentralization of value” has been longing and last piece of internet protocol since the inception of Web1.
Web3 is also seen as the movement of getting back the original internet from “centralization of value” in Web2.
5

Blockchain
6
Starting from Bitcoin, blockchain technology has achieved both decentralization and advanced security. As a
solution for Web2 problems, a wide range of crypto applications has been developed and grown fast.
Hacking free
24/7 working network
Permissionless access
Data Ownership
Traceability
24/7
Picture Source: Ministry of Economy, Trade and Industry Japan

Trustless World.「Donʼt trust. Verify.」
Inspired by Blockchain Business Summit ~Beyond PoC ”Blockchain basic lesson” powered by Layer X 7
Smart contract
Powered by smart contract that is verifiable and automated-execution program, blockchain has been adapted
to wide range of industries. Smart contract and blockchain can replace trust in real world.
Innovation of trust
Verifiability
Automated
execution
Tamper
resistant
Need to broke to verify Private codes Verifiable codes
Physically modifiable Operator can tamper Canʼt change after deployment
Vending machine Popular e-commerce Smart contract

Data ownership / Data access
Data ownership and access are controlled by each service in Web1 and consolidated to some big techs in Web2
by single sign-on. Web3 wallet makes users to hold ownership of data and access without ID/Pass.
Source: Twitter 8

Web3.0 Stack
9
Protocol
Ancillary
Service
Blockchain
Compared to Web2, Fat Protocol, protocol capturing value, is unique point in Web3 by token and open source
structure. This strcure makes a service provider difficult to monopoliz in its category.
Service classification example Product example
Crypto asset
exchange,
NFT market place
Stable coin,
DeFi, NFT game,
Web3 SNS
Wallet, ID, Security,
Certification, Dev tool,
Storage
NFT Lending,
NFT mint and
ops API,
NFT asset
management,
Web3 mark-
eting,
DAO tools,
Analytics
Infrastructure
Application
(incl. Primary Distribution)
Secondary Market

1. What is Web3.0？
• Background
• Blockchain
• Smart contract
• Web3 Stack
2. Market Landscape
3. Notable contexts of Web3.0
• Token economy
• Culture
• Moat
• Investment

Market overview
* Source: ConsenSys 11
Industries using Blockchains (*) DeFi (Decentralized Finance) NFT (Non Fungible Token)
• Staring from DEX and expanding
• Yield Farming, Liquidity Mining
changed game
• Total mkt. value: $174bil / TVL:
$240bil (end of November 2021)
• Used for ownership of digital asset
• Starting in 2017 and booming in 2021
• Collectable to utility
• Total mkt. value: $52bil (end of Oct.
2021) / Trade vol.: $23.9bil (2021)
Bitcoin Price
2017 2018 2019 2020 2021
• Increase of blockchain
business PoCs
• DeFi boom • NFT boom
• STO, IEO and more many
concepts arise
• ICO boom
DEX Stabl coin
Lending Asset optimization
1.0 2.0
3.0
Development of Ethereum, a blockchain with smart contract, blockchain technology has been adapted to
wide range of industries. DeFi has led Web3 since 2020, and NFT has become big in the market after 2021.

• Total market cap recorded all time high
$174bil (20tri) in Nov 2021.
(Comp.: Total market cap of top3 mega bank in
Japan was 18tri.)
• Market grew +650% in 2021.
12
Crypto Asset
DeFi NFT
Market size
Accelerating by NFT booming, blockchain-based economy: Web3 has been real in 2021. Web3 global market is
already comparable to Japanese traditional economies.
• Total market cap of top 10 assets recorded
all time high $2.5tri (290tri) in Nov2021.
(Comp.: Total market cap of top30 stocks in Japan
was 250tri.)
• Market grew +176% in 2021.
• Total trade volume of top 10 market was
$24bil (2.7tri).
(Comp.: Digital B2C EC market in Japan was 2.5tri.)
• Monthly volume grew+5,438% in 2021. (Jan
to Dec)
Crypto asset market cap 290tri NFT trade volume 2.7tri
DeFi market cap 20tri
Digital B2C EC
market in Japan
2.5tri
Top 3 banking
service in Japan
18tri
Stock market
in Japan
250tri

DeFi (Decentralized Finance)
13
A variety of traditional financial service has been developing in Web3. Huge demand has been created by
high yields.
Case study 1 Case study 2
• First crypto lending service
• Invention of Yield Farming and Liquidity Mining
• Gov. token COMP mkt. value: $2.0bil (end of Oct 2021)
• TVL: $18.3bil / Total borrowing : $7.5bil (Oct. 2021)
• Frist AMM decentralized exchange (DEX)
• Opportunity to earn yield created by liquidity pool
• Gov. token UNI mkt. value: $15.2bil (end of Oct. 2021)
• TVL: $3.6bil / Trading volume: $44.1bil (Oct. 2021)
Lender Borrower
Liquidity provider Trader

NFT (Non-fungible Token)
14
1.0 (2017 - 2018) 2.0 (2020 2H ‒ 202 1H) 3.0 (2021 3Q - )
• With more utility such as cross-
service usage and right for
participation of community
• Market growing by Play2Earn game
Born in 2017, NFT has expanded in art and game due to useful for proof of ownership. After several booms,
NFT is getting more popular and expanding to lifestyle, media & entertainment and traditional contents & IPs.
• Boom by posts of tech celebrities
and rise of price of crypto assets
• Expanding in collectables such as art
• Standard (ERC721) makes
development easily
• Boom in game industry because
items can be owned and resold in
secondary market
• Crypto kitties
• Triger of attention of NFT
with $100K+ trading
• My Crypto Heros
• Biggest in DAU and
trading volume in 2018
• NBA Top Shot
• First mass adopted NFT
by connecting real world
• NFT art by Beeple
• Winning Bid inChristieʻs:
$69.3mil
• Bored Ape Yacht Club
• Tight community with
events and collaboration
• Axie Infinity
• Essential service in
developing countries under
COVID19
$23.9 bil
Trade Volume (2021)
52 bil
Ttl Mkt Cap (Oct 2021)
• Token with unique ID that can be linked to digital asset
• Ownership information and transaction history on blockchain
NFT

DAO (Decentralized Autonomous Organization)
15
Source: Cooopathroopa, a16z: How to Win the Future
DAO is an organization that works autonomously without operator powered by smart contract and blockchain.
Many promising crypto projects aim to become DAOs for real decentralization.
概要 Case study
• Decentralized writing service launched in Dec. 2020
• NFTed Writing, crowd funding function, creative data
stored in decentralized storage Arweave
• Operational decision made by voting of token holders
• 2021 1Q: Raised $10mil by USV, a16z, etc.
• Organization working by transparent verifiable codes
• Decisions made by Gov. token holders when necessary

16
Web3 is still fragmented. There are some profitable service models, such as DeFi and NFT market place, but
very limited. Variety of products come and go in a rapid growing market.
NFT x DeFi NFT aggregator Community management tool
Gateway, Notification Builder NFT rental
• NFT rental service between NFT holders
and NFT users
• Demand on GameFi and blockchain
metaverse is growing.
• NFT is getting used for event ticket and
community participation right.
• Consulting or development API products
for brands and IP holders that entry to
Web3 fields
• NFT minting and market place builders
have increased since last year.
• Demand of NFT community operation and
enhancement tools is increasing.
• NFT related community operation or
marketing products
• Varity of products, such as access
management for NFT holders on Discord
or push notification for specific NFT
holders, have released.
• Community led organization is a key
feature of Web3 products.
• Many types of DAO management tools
such as treasury management, voting,
token distribution are getting popular.
• Aggregating and providing NFT related
information such as trading stats among
NFT collections or market places and
blockchain
• Demand of NFT aggregator is growing by
rapid growth of NFT market.
• Mix of NFT and DeFi
• Several NFT lending products, that users
borrow crypto asset against their NFTs as
collateral, raises tens of million dollars.
• Other new concepts, such as NFT staking、
NFT trade mining, etc. are coming.
Web3 Upcoming service model

1. What is Web3.0？
• Overview
• Blockchain
• Smart contract
• Web3 Stack
2. Market Landscape
3. Notable contexts of Web3.0
• Token economy
• Culture
• Moat
• Investment

Token economy
Incentivizing users to contribute to community, token is a driver to grow a Web3 product. 24/7 operating
market makes liquidity. Controlling token price is similar to monetary policy making of nation.
Source: Lauren Stephanian Mirror, STEPN
• Token allocation and distribution schedule are
determined in whitepaper.
• Ideally, Mint and burn are automated by smart contract,
like Bitcoin.
• In most products, mint and burn are determined by
operating team initially and aimed to move for voting of
token holder.
• Sustainable user growth and controlling token supply
without inflation/deflation are similar to monetary
policy making of nation.
• Best tokenomics is various depending on prodouct
categories and researched by experts and economists.
Mechanism
18

Culture
Users and projects always collect and post information on Twitter, making unique culture of Web3. Web3 world
is overflowing with information so that collecting it quickly and accurately is important to survive.
Source: Mr. Taira in liberal democratic party in Japan Twitter, darkstar Twitter & Mirror
• Everyone communicate on Twitter. Unique culture
such as gm, LFG, WAGMI. Borderless world.
• 24/7 information. Many scam projects and fraud DMs.
DYOR.
• Joining to project and receiving reward based on
contributions rather than belonging and working for
organization.
• Pseudonymous culture. Status and network on SNS
and outputs and assets in wallet are more reliable
information than traditional real world trust.
Features
19

Moat
Token and opensource make value distribution of Web3 different from that of Web2. It is said that
monopolizing in each category is difficult and Liquidity, Community and Composability are moat of Web3.
Source: Union Square Ventures, THE BLOCK, David Phelps Twitter
• Fat Protocol, protocol layer can capture value, is
different from Web2 that applications capture value.
• Vampire Attack, launching strategy of coping codes of
leading product, is popular in Web3.
Features
20

Product development
24/7 working blockchain makes developer to launch product to global market easily. In the fast moving and still
early stage market, building global team from day1 is a key to success.
Picture source: a16z How to win the future, Astar Network, Azuki Discord
Features
• Still very early stage. Trends are hard to predict in fast
moving market.
• There are few proven business models. Most products
are unclear for monetization.
• Always connecting online, most development teams
are diversified both race and geographically.
• Releasing product information on Twitter and
operating user community on Telegram and Discord.
• Development environments are different depending on
each blockchain. Developers and capitals are migrating
to promising blockchains.
21

Investment
Nature and features are different between token investment and equity investment, making investment
strategy differently. Borders between investment and product development are ambiguous in Web3.
Source: Paradigm, あたらしい経済
• Not only equity, but token financing is popular.
• Token investment includes contributing to DAO and
node operation sometimes. Web3 investment needs
more involvement to its project.
• Top Tier VCs hold researchers and engineers,
eventually releasing products. Startups stake its
raised capital on DeFi.
• Instant liquidity before IPO/M&A.
• Real-time market value not depending of funding round.
• Asset management of raised capital by staking and
lending .
• Founder and Team allocation are smaller than equity.
• No dilution or minimum dilution with transparency.
Feature of token (Different from equity)
Mechanism
Private sale
SAFT Public sale ICO/IDO/IEO
SAFE/KISS Equity round IPO/M&A
Equity
Token
22

24
Initiative for building Web3 ecosystem in Japan
In Japan, Web3 startups, creators, influencers, media and corporations have gathered at MIRAI LAB PALETTE
close to Tokyo station. Attracting VC/CVC now, three elements of startup ecosystem are getting ready.
Role model
Talents
• Web3 startups, creators,
influencers, media and
corporations are
gathering.
Capital
• Web3 sourcing manager of
CVC of the company that
operates MIRAI LAB
PALETTE is there.
• Many VCs register PALETTE.
Place
• Open innovation and co-
working lab MIRAI LAB
PALETTE is located in
Otemachi Building attached
to Otemachi subway
station.
Block 71
• Government led startup ecosystem in
Singapore
• Providing office and collaboration
space for startups and
VCs/accelerators at discounted rent
• 260 startups and 25 VCs/Accelerators
there as of 2016
• Managers of investment vehicle of
government there
Projects registered in PALETTE
PALETTE NFT club

25
Protocol
Infrastructure
Application
Secondary Market Ancillary Service
Web3 Chaos map in Japan
Japanese Web3 market started catching up in late 2021. Regulation issues made innovative startups and
entrepreneurs go outside Japan. Japanese government has started discussing to change regulation in 2022.
* Including project originated in Japan or by Japanese founders and now based outside Japan, and foreign project having office in Japan

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