How the top VCs in Silicon Valley deploy the investment track of Web3 and Metaverse

The Metaverse Thirty People Forum is a theme event hosted by the Hong Kong Blockchain Association. The event discussed how the top VCs in Silicon Valley deploy the Web3.0 Metaverse track. The speakers are:

Wendy (Moderator): Deputy Secretary General of the Metaverse Thirty Forum

Richard d Wang : Partner of Deding Innovation Fund, Honorary Dean of Metaverse Education College of Hong Kong Blockchain Association

Tony Tong: Co-founder of Hong Kong Blockchain Association and Metaverse Education Institute initiated by Hong Kong Blockchain Association, Chai Geyang: Founder of Tagging, Co-Chairman of Hong Kong Blockchain Association, Hong Kong Political Consultative Conference Youth Federation Vice-President

On the topic of how the top VCs in Silicon Valley deploy the top track of the Metaverse of Web3.0, several speakers conducted full and in-depth discussions and exchanges in the dialogue session.

How the top VCs in Silicon Valley deploy the investment track of Web3 and Metaverse

Mr. Tang : Let me first talk about my understanding of DFJ. Everyone should know that DFJ is the Godfather of Silicon Valley in the era of Web1.0 Internet. The very famous Tim Draper is known as the Godfather of Silicon Valley Venture Capital. Especially famous, he bought 30,000 bitcoins from the US government for less than $1,000 at the auction, which was a good entry, and he has always been very supportive of the blockchain industry. I myself started as an Internet technology developer who wrote code. I used to be a centralized database administrator in the United States, in Accenture and some large institutions, and I have also developed many large-scale banking systems. Step by step, I have seen the Internet from The interactive Internet from Web 1.0 to 2.0, and now the value-based Internet of 3.0. First of all, I would like to ask Mr. Wang to tell us about your institution, especially the legendary story of DFJ and your founder?

Richard WangFirst of all, I am very honored to join the Hong Kong Blockchain Association. As the honorary president, I have the opportunity to build our future world together with senior friends in this industry. In fact, when we talk about Web3, there are basically several things that must be built, shared, and governed together. I think this is a very basic spirit.Well, the boss of our fund in Silicon Valley is named Tim Draper. He founded DFJ in 1985 and translated it into Defengjie in China. It has a history of more than 30 years. Basically, there are two key reasons for this reputation in the United States and even in China. The first is that the Tim Draper family is indeed a so-called venture capital family. What does that mean? Tim’s grandfather started working in this industry in 1955 and started doing venture capital. Tim’s father also set up a venture capital institution until Tim himself established DFJ in 1985, so they are a family of venture capitalists. Tim’s own son is Adam Draper has also done an incubator called Boost VC, one of the famous points is that he backed Coinbase, a public company in the United States, as an early angel investment in 2012. Therefore, he has such a family of venture capitalists in the United States that has reached the fourth generation. When we look at many things, we should understand its history. For example, what is the history of “big cake”, how did the Chinese word blockchain come from, and what is the reason for it? The Chinese characters of the blockchain are translated, so which year was the English character created? From understanding the past, you can more or less understand some logic. So many things we are willing to talk about from its historical roots. Well, today we are talking about venture capital. Venture capital is obviously an early stage rather than a late stage. It is not PE. We all know that the greater the risk, the greater the return. The entire logic and industry of venture capital, or such an ecosystem, is a process of gradually turning angel investors into institutions and early investment institutions. In ancient times, I was still a so-called angel investor. If I was an outside employee, I would use my own money to fund some talents to go out to study. This is all personal behavior. How can it be gradually institutionalized? This should start from the 1950s. In the United States, government units started to initiate them first, and the government units said, OK, then you have a few angel investors willing to make such venture capital, and my government also allocates a certain amount of funds. This is the same as the idea of ​​many local guidance funds in China. Maybe you can say that local guidance funds learn the concept of the entire venture capital industry in the United States, start to allocate some capital from the government, and early investment institutions contribute some capital, and then we invest Some high-risk early stage projects to support.

The second point is that DFJ has many fund institutions. Our sister fund provided Baidu’s first $2 million investment in the early stage, which is why we have some reputation in China. On top of that, we were the first institution to invest in Elon Musk’s Tesla when Elon Musk’s own funds weren’t enough to go out and find institutions. The reason why DFJ has some relatively big fame is mainly related to the above two points. So it has continued until now. Just now, Mr. Tang also mentioned some of our layouts in this field. In fact, we have a vision of freedom and trust in the investment philosophy of the entire fund. Only with open freedom and full trust, we Only then can we develop a better human civilization. Based on this concept, we will explore all possible technical solutions and all possible innovative changes. Our organization has a slogan called looking for dreamers who can change the world. They must be dreamers, because we don’t want you to do what you can see now. What we want to invest in is to do something for you that you can’t think of. Only by dreaming can you dream. In it, the world must be changed. The most extreme example is going to Mars. Changing the world doesn’t want this world at all, he wants to go to another world, right? So I’ll probably put the story to this place.

Mr. Tang: Thank you Mr. Wang Yuehua for sharing with us about Defengjie DFJ. I remember that the first time I met Tim Draper was probably at the venture capital forum in Shenzhen in 2002, an occasion where all the Internet bigwigs were there. I remember listening to Tim Draper being very active. He started dancing in the middle of his speech on stage. I think this guy is not simple, and he is very humorous to entrepreneurs and young people. Later, I also visited every time I went to Silicon Valley, including yours. hero city and Draper University, and later I also discovered that although DFJ is an American venture capital institution, it seems that more and more Chinese partners are involved. Mr. Wang, can you share with us how this has evolved and attracted many partners, especially Chinese people to join your organization?

Richard WangThank you Tony, let me talk about Tim’s own characteristics first, he is really very friendly, very willing to meet and encourage entrepreneurs. Let me give you a few examples. The first one, in Silicon Valley, Tim will explain some of his ideas through his own video program, telling everyone how we as investors think the world will evolve in the future, because we invest in the future. In fact, we all know that if a person is not very capable of some performance qualities today, it is impossible to have a large audience in a video program. And Tim is also more outgoing and likes to get in touch with entrepreneurs. The other one, just now Tony always mentioned our university, Draper University, we have a strict rule that we only accept students from 18 to 28 years old, so no matter how old Tim is, the entrepreneurs he faces are all 18 to 28 years old. He has been reaching out to young entrepreneurs and young minds. I often talk outside, the Internet Web1.0, 2 that we invest in. 0 is to invest in the post-70s, and in another ten years, invest in the post-80s, so now is it to invest in the post-90s? The question is, this is an entrepreneur, but what about your audience? Your audience has changed from the original post-80s to the post-90s, to the post-00s, and now to the post-10s. This is your audience, your customers. So for us, I don’t just need to understand the post-80s, post-90s, post-00s, I even need to understand the post-10s, because they are the audience after the project I voted for, if I don’t know the appetite of his audience, I can’t To evaluate this project, it is necessary to reach out to young people more. Tim is the same, the reason why he is enthusiastic and very outgoing is because he wants to accept new things, new things not only come from new inventions, but also from new life, these young people I am talking about. Especially in the field of blockchain, you can find that many new entrepreneurs are very young, and you can hardly see the post-70s, all of them are post-90s, and they are very successful.Therefore, entrepreneurs have new ideas. They are willing and dare to break the status quo and become a “dreamer who changes the world”. The post-70s and post-80s have too much burden and dare not take risks. Of course, 20-year-olds are more willing to take risks than 50-year-olds, nothing to lose, so you must be looking for young entrepreneurs. Tim himself was quite willing to relax when we were building a team. There is a thought among foreigners called “Have fun while working”, so in entertainment and work, they are actually very integrated. The big Silicon Valley investors who will be understood by everyone from the outside are very serious, and I am not serious myself, right? Tony also mentioned a question just now. We actually have many organizations in China. We just mentioned hero city and Draper university. We also have an organization called Draper venture. network global investment network, what does global investment network mean? We have sister funds in every region, including Tokyo, Seoul, Shanghai, Dubai, London, India, Brazil, etc. There are probably more than 20 sister funds in the world now. What about the more than 20 sister funds, they have local offices and are looking for local entrepreneurs and potential development prospects. So in fact, it is not that we have many Chinese partners, but we are one of them, called Draper Dragon. Basically, since 2005, we have combined various cross-border resources between China and the United States, such as American technology and The Chinese market, or Chinese start-up companies go to the American market, or Chinese artificial intelligence companies go to American engineers, so we have such a cross-border advantage or bright spot, this is what Draper Dragon did. And of course other sister funds have their own highlights. Well, it was just mentioned that our Draper Dragon partners are more Chinese, but not all of them. We have some foreign partners. We are still mainly in the field of blockchain. Of course, our Draper Dragon does not only invest in the blockchain industry. We have USD funds and RMB funds. Our current RMB fund focuses on health care. We have a No. 4 RMB fund that focuses on medical and health care. In the past, our RMB No. 1 and No. 2 invested in many chip design projects, even electric vehicle projects, then we now The RMB fund focuses more on projects in the medical and health sector. Therefore, around the development of the entire US dollar fund, we are now focusing more on the blockchain field and the Metaverse field. In this field, we actually welcome more people with resources and abilities to join us and develop risks together. investment business. Therefore, our current RMB fund focuses more on projects in the medical and health field. Therefore, around the development of the entire US dollar fund, we are now focusing more on the blockchain field and the Metaverse field. In this field, we actually welcome more people with resources and abilities to join us and develop risks together. investment business. Therefore, our current RMB fund focuses more on projects in the medical and health field. Therefore, around the development of the entire US dollar fund, we are now focusing more on the blockchain field and the Metaverse field. In this field, we actually welcome more people with resources and abilities to join us and develop risks together. investment business.

Mr. Chai:Thank you Chairman Tony and President Wang. I think this year is also the first year of Web3. I found that more and more traditional Internet companies, funds or VCs are discussing a topic, what is Web3? How do we chase Web3?What entrepreneurial projects should we do in Web3? In fact, these questions are all I want to ask President Wang later.Let me briefly talk about my views on Web3. Since last year, the concept of the Metaverse has exploded. With the development of the mobile Internet, more and more people have begun to pay attention to data security, data privacy, including data assets, because Internet users How many billions are there in the world? Chairman Tony and I started discussing this topic in 2019. At that time, I was working on industrial intelligent big data. Through this algorithm push, we could accurately dig out some user preferences and draw user portraits. But at that time, in the first year of Internet supervision in 2019, With the outbreak of the EU’s privacy regulations and the outbreak of many data asset leaks, many people have begun to have this awareness: Who should belong to the ownership of the data I leave on the Internet? Last year, we all knew that after NFT broke out as a Metaverse and a breaking application of blockchain, more people started to join the field of crypto through NFT, or joined the field of Web3. We made this Web3 and Tagging this Metaverse. The application was planned in 2019 and positioned in 2020 – a Metaverse social application that protects user data assets.Why is it so positioned? We think that in the future era, there are so many designers to release their own NFT, so what other application scenarios does it have other than as a social media avatar? This is also an important point for our Tagging at that time, that is, we have to do SocialFi, we have to do application scenarios, so that more project parties, more designers, and more holders of this NFT can have in addition to Do more application scenarios other than secondary transactions. Many people have recently started to pay attention to Web3, including learning about crypto and blockchain, and then many people are thinking about when to join, including a lot of recent media articles about fleeing from Web2, then chasing Web3, and becoming Web3 With the birth of slogan, many programmers in traditional Internet companies began to be anxious, and then traditional VCs began to be anxious, so I have a question for Mr. Wang, what do you think of this year, which is a very historical node, and why everyone is so excited this year? Start paying attention to the Web3 track, are there any wealth passwords or major opportunities?

Richard WangThis Web3 is not a new term. Someone mentioned Web3 about ten years ago, and it was mentioned before the blockchain. So why is it so popular since last year? I estimate that it is mainly related to the capital market in the United States, that is, A16z. It has been investing in so-called Web3 startups, mentioning Web3 and investment layout, so there is such a hot air, and his debate with Twitter founder Jack Dorsey on Twitter has caused some heat. Whether it’s Web3 or Jack Dorsey mentioned a Web5 joke, he said that Web2+Web3 became Web5, I skipped Web3, Web4 to Web5, of course, this is a joke, but what is the essence? The essence is that no matter how many times you build the Web, whether the project can generate commercial value for entrepreneurs or investors. According to our old way of thinking, producing things is nothing more than smashing pots and selling iron-covered factories, but obviously in the world of the digital economy, your every move, for example, we went live today and said a sentence today, that is production, I produce A word, a point of view, and a piece of data are production, so how to convert these production things into commercial value? The commercial value here should not be understood as traditional income and profit. It may also be that my words have inspired a certain person. This inspiration has become an opportunity for a project one year later, which is valuable. .So what we are discussing is how to convert this value to all those who contribute to this matter, which is called data autonomy in Web3, and data autonomy is not simply the ownership of data, but the value of the data itself. Web3 contains many elements. It is like an elephant. People who touch the legs talk about the legs, touch the nose and talk about the nose, and touch the tail and talk about the tail. Today, no one can see the whole picture. In fact, Web3 is not an elephant. It may be a “four dissimilarities”, because today there is no authoritative organization and no one person can define Web3. The definition of Web3 should be formed by all users from now to the future. It will grow and grow. Not cured, which is the wonderful place. But looking back, I generate value from the project. After the value is created, how can I let all people share it? This involves another concept of Web3. We used to talk about the relationship between production and consumption. You have shareholders, management, employees, and consumers. This series of things is closed by blockchain. Producers As far as consumers are concerned, consumers are your shareholders. There is another important concept in Web3, called stakeholder, which can be translated into common interests in Chinese. I do these things today to benefit the participants. Data contributors on Facebook, Twitter, Weibo, WeChat and other platforms have always been Contribute data up, but get no benefit at all, and don’t even have the right to speak about the data. This is the problem that Web3 wants to solve. First, let users get power, not interests, but a kind of rights, that is, ownership. To build this Web3 “four

Mr. Tang: Hong Kong is still a relatively fast-developing area in blockchain, NFT, and Metaverse. The ranking of economic freedom system is also among the best in the world. We have seen that in recent years, Hong Kong has also produced many famous companies in the blockchain industry. , including crypto.com, and FTX, which was founded in 2019. Then there are companies in the industries of NFT and GameFi game finance. Now after the outbreak, suddenly we see the outbreak of play to earth and games, and more and more companies are starting to transform traditional games, such as Angry Birds. It turns out that you can get satisfaction by playing games to get some scores or rankings. After the blockchain is available, you can use NFT, especially overseas, to make your game characters and props, your IP and intellectual property directly generated. Value, then it will lead to a lot of these IPs that can produce value, and these people who can produce intellectual property, whether it is painting, digital art, or singing, will lead to a lot of these IPs with property rights. These people can directly own it data, and its IP and intellectual property rights are realized overseas through NFT and domestically through digital collections. In this regard, I would like to ask President Wang how to use the blockchain to realize the business opportunities in game finance and various IP property rights?

Richard Wang : There are indeed many good financial service companies in this field in Hong Kong. Tony always mentioned digital collections just now. I think we can still talk about NFTs in China. He is not a transactional thing. What is the essence of digital products? Woolen cloth? It just digitizes a stake, so it’s a digital certificate. Therefore, the essence of NFT is through blockchain technology (ERC-721). Through this protocol, a series of codes generate a digital certificate, so NFT is a digital certificate, and there is no other content at the technical level. So today we have to think about how to derive a business model from this digital certificate? To give a grounded example, if IT and digitization are implemented in the future, you do not need to have a real estate certificate, but will give you an electronic document with a password on your mobile phone, only a string of which you can see. Two-dimensional code, this two-dimensional code is unique, one certificate per household, so how can I make a business model from this digital certificate? What business models do you use with real estate certificates today, you can do the same business model, mortgage, loan, lease. So you don’t need toextend NFT too much or worry about it, its essence is just a digital certificate , so the question is what do we do after we take this digital certificate? Let’s classify it first. Digital certificates may be collectible , such as paintings and artworks;functional , such as air tickets and tickets; and so-called financial , purely asset-based. So in fact, whether it is collectible or functional, it has more or less value. You don’t have to use the word asset to measure it, but it is definitely valuable, that is to say, it can be equivalent, all digital certificates can be equivalentFor example, if you graduated from Peking University and Tsinghua University, you have a degree. Peking University and Tsinghua University do not need to give you a diploma, but a QR code with your name and password on it. This is a digital certificate. This is also valuable. After graduation, I will go to work, make friends, or even go to some dating platform. My thing is here, and my value is here.NFTs and digital certificates are not irrelevant to our lives. They are originally in your life, such as the example of the real estate certificate just mentioned. Second , because of this digital certificate and the completeness of technology, we can disassemble or integrate it . For example, in the past, a household could only have one real estate license and only one buyer. Now I can sell one real estate license to 1,000 buyers. It can be integrated, shared, and created. So we just mentioned IP, which can be changed from two IPs to a third IP; from a technical point of view, for digital certificates, two QR codes are fused together into a new QR code, which can Generate many derived concepts. Let me talk about a deeper concept, especially the infrastructure in our Web3, called decentralized ID. In fact, let’s not talk about decentralized ID, let’s talk about digital ID. Now your ID card is in the form of a card, but the ID card is originally a digital ID encoded by a set of codes, and it is also a digital certificate. Your personal ID card is an NFT. Why is this ID so critical in Web3? Because from birth to disappearance, without an ID, you don’t know who he is, you can’t get his data, and you don’t know who generated the data, there is no reference value, and he doesn’t exist. So these IDs, NFTs, etc. mentioned are the basis of Web3. So no matter it is an application in the field of NFT, in various Metaverses, in DAO, these IDs are basic equipment, ID is a kind of NFT, this ID is not limited to the ID that falls on everyone, these NFTs It also includes mobile phone, email, WeChat account, Facebook number, etc., so a person has multiple IDs, and each ID has its corresponding information, data and assets. As long as any ID is gone, you may be in this society. A part of it perishes because you are not recognized.For example, if your mobile phone number is lost, it cannot be recognized by China Mobile, and then it is not recognized by the bank because the verification code cannot be provided, so we cannot trace it, and the identity certificate is mastered by the communication operator, which involves the concept of decentralization. Back to the question, any project can be done. The question is whether it can create commercial value. Whether you are an NFT or a non-NFT, I don’t think it is particularly critical. There are many business models and things that can be derived from the co-creation of music and songs, but in the end we have to see how to create value and business interests.

Mr. Tang : You just went to this school in Silicon Valley. I also noticed that Stanford University also announced that the certificates of some of their courses will be issued in the form of NFT, so our Hong Kong Blockchain Association and our Metaverse Education Institute Recently, it has also launched a series of Metaverse and blockchain courses with the Hong Kong Institute of Financial Management and ITU.edu in Silicon Valley, the international technological university in the United States. We also plan to use this NFT as our graduation certificate. I think there will be more and more virtual characters in the future, such as robots, or 7*24 customer service, or the virtual Tim Draper 7X24 to answer various entrepreneurial questions for entrepreneurs online, and provide various company services. This kind of virtual character will be needed, so please share with us Mr. Chai whether there are any solutions for this aspect of the project you are currently participating in?

Mr. Chai:Thank you Tony, why is our Tagging called this name? Tagging means tagging, and ours is called Shenzhen Tag Data Co., Ltd. in Shenzhen, but what we do is another Metaverse social application. In fact, it is divided into several steps. I am actually going to discuss a problem with this Richard, that is, what industries and data do we have, which cannot be solved by Web2 now, must be solved in Web3? I think it is still at the level of social data, because this level is the most critical. Now we all know that everyone has been using the Internet for at least ten years, including the era of the mobile Internet. The data left by social media and the ownership of assets were also mentioned by President Wang just now. The second is how these data assets are circulated. Do we have the right to control these assets? In fact, Tagging also wants to gradually realize in the Metaverse scene that each user can start to own their own data assets. How to do it? In fact, our first step is to start with NFT. We do not necessarily enter the Metaverse with a real identity. For example, many of our current WeChat avatars are actually not real avatars, and everyone uses a virtual image more. In other words, we have seen a lot of Metaverse movies mentioning a very important concept called NPC, so in the Metaverse world, more of us will like to use an avatar to socialize, interact, or exist in the future. Interact with everyone; this virtual image, this NFT can also generate data for itself, carry data, and obtain a carrier of data. We Tagging also hope that in this way, everyone can have their own NPC first, and first have their own so-called unique NFT image to cast. After casting, this NFT image is a way for him to interact with other people. Of course, we also have a wallet of our own digital assets. Why use “tags”? In fact, this is what we have come up with through continuous discussion. In the past, people thought about which data is worth uploading on the chain. For example, pictures can be directly uploaded to the chain. This is a digital certificate. We give a hash and a string of The code is bound to its own wallet, which can be used for verification. But have you ever thought about how to upload social data to the chain? We type and talk to many people every day. Do we have to upload all these messy data to the chain? Or how does it accomplish this step? We thought of a way to use “labels”, what are labels? Labels are similar to an interactive way for young people – barrage, each The label does not exceed seven characters, and then we quantify it in the form of labels. All NPCs and NPCs interact with each other in the form of labels. This is also one of the characteristics of our products. What is the value of the data assets precipitated through labels? ? In fact, back to the game attributes and immersion of the Metaverse, as well as social attributes, we hope that each user’s NPC can precipitate his own NLP, a language method, by tagging with many NPCs. As a result, the user will find that he can interact with anyone through an NFT digital image, label and tear off the label to train his NFT digital image and create a new scene. We have seen that recently, Xiaohongshu, Douyin, and domestic digital collection platforms, thousands of digital people are born every day, so we have to think about where these digital people go? What is the value and significance of these digital people themselves? We saw that there are many large-scale 3D digital people on Xiaohongshu that cost hundreds of thousands to create, and the traffic is poor, but unfortunately there are only hundreds of thousands, why? Because there is no bond between the real user and the digital human, there is no emotional communication, the digital human has no soul, it is just an empty image, and he does not have such a deep social or interactive attribute with the user. Therefore, Tagging hopes to give each digital person the soul and data value of each digital person. Users can also use their own digital person to interact with others. This is the social scene of the Metaverse that our company wants to achieve. There is a question I want to discuss with President Wang. Now we have seen NFT music, and it is easy to realize the avatar as an NFT certificate, but how do you view social data from your point of view?No matter from the perspective of technology development or future content distribution, how can we change the production relationship of users? What do you think of Web3.0 as a change in production relations? Or what breakthroughs do you think will allow us to truly realize this kind of social data exchange? 0 is the change in production relations, what do you think? Or what breakthroughs do you think will allow us to truly realize this kind of social data exchange? 0 is the change in production relations, what do you think? Or what breakthroughs do you think will allow us to truly realize this kind of social data exchange? 0 is the change in production relations, what do you think? Or what breakthroughs do you think will allow us to truly realize this kind of social data exchange? 0 is the change in production relations, what do you think? Or what breakthroughs do you think will allow us to truly realize this kind of social data exchange?

Richard Wang : Thank you Mr. Chai. You just said a lot of concepts that are in line with Web3. Before answering your question, I want to talk about how we understand Web3. The first one is that it has nothing to do with the blockchain, so Mr. Chai just said that it can’t be on the chain. In fact, Web3 has no affiliation with the blockchain, there is no direct relationship, and there is no necessary relationship. Among all the entrepreneurial projects of Web3, some projects may use blockchain technology, but there are also many projects that do not need to use blockchain technology. We talk about many things in Web3 that may be so-called decentralization. Of course, there are also many Web3s that do not need decentralization, because I just said that the most important thing in Web3 is not decentralization, and user autonomy is the first. So what is the composition of Web3? Just now, Mr. Chai mentioned virtual people and virtual idol digital people. I want to mention a few examples later. Today, we see that many virtual people are nothing more than two-dimensional versions or hyper-realistic versions, which are probably two types. In fact, whether it is a two-dimensional version or a hyper-realistic version, there is a person behind the actual interaction, motion capture. Tony always mentioned that this is called 7X24 being able to interact with you online all the time. That’s impossible, because there is a real person behind it.Even if you use artificial intelligence to run an image, for example, I only work 8 hours today, and the other 16 hours are artificial intelligence to replace me to do the interaction, this thing is not difficult, and this thing has nothing to do with the blockchain, early. Many companies did it ten years ago. For example, there is a robot that helps you answer emails, the machine reads the text for you, judges whether the email can be answered, and uses artificial intelligence to help you interact. Therefore , there are three cornerstones of Web 3, and the first cornerstone is artificial intelligence, you may think that artificial intelligence has not been around for a long time, security, cameras… not so, artificial intelligence must be built in your Internet, today your Internet, that is, Web2, does not have a strong enough built-in artificial intelligence, so in the future The built-in artificial intelligence of Web3 is a must and the cornerstone. Going back to the first point we just talked about – user autonomy, if there is no appropriate artificial intelligence, he will not be able to program your data to judge whether it is private data or not. Without artificial intelligence, it will not be Web3. Another basic is Edge  C omputing, which is edge computing . Let me give another simple example, which is why edge computing has become so important. You may not feel that mobile phones and cars are your edge computing. In the future, people’s social space will be nothing more than a home or an office or another mobile carrier, a car, or something similar to a car. Inside the car is a Metaverse scene, so it is an edge, and this edge is the foundation. And your Web3 is wearing a headgear at home, whether it is AR glasses or VR glasses for edge computing, it is a terminal, so edge computing is a must in Web3, because it is the contact point that connects many human-machine interfaces. The third is a lot of data, we call it a distributed data network, all data networks come from various other parties. Then Mr. Chai just said that what kind of things can be better ported to Web3 in Web2? Social networking is obviously one of them. In fact, there are three. Many projects we are looking at now started last year. We invested in more than 40 projects last year, including social networking, e-commerce and games. In fact, it is easy to understand that games are all data interaction. In fact, the first layer you see is the UI interface, and the second layer to the background is all data interaction. E-commerce platforms are also data interaction. What we see on Taobao is what the platform wants to show users and merchants. It is a data interaction, so why do e-commerce companies have to migrate to Web3? Otherwise, you will be held hostage by these platforms. Users may not know that they have been enslaved. How did the things you see come from? The platforms want to show you, not you.Therefore, social networking, e-commerce, and games all have a lot of room for development in Web3, because he must have problems, but these problems affect my pain points, this is Web3 in social, in e-commerce, in the game field There is a good point of entry for development. Especially in the social field, there are many application scenarios. Just now, Mr. Chai mentioned that virtual characters are an application scenario. Who is the value in data interaction in traditional Web2? For those who need to use it, such as advertisers, such as the so-called implanted advertisements you see on Weibo, Twitter, etc., it will push you based on these data. So in social networking, in Web3, if you have a good algorithm, you can firstly benefit from it as a user, and secondly, you really have the power to choose to avoid what you don’t want. This is the key. Today, if our users don’t have the right to choose, they have no right to choose what I want and what I don’t want, which means that today users have no freedom. Let me give another example of down-to-earth. You have 1 million RMB in the bank today. You are going to take it all out. Sorry, you can’t get it out. The bank will ask you, who are you? for what? Why are you getting this money? There is no freedom. Everyone must liberate themselves and have high standards, so that you can walk out of the ivory tower and know your ceiling. Let me tell you another extreme example. Why do people go to Mars? The ceiling is the Earth. Of course I don’t want to. I want to go to Mars. So I really have to set this standard high so that we can pursue infinite possibilities. Looking back on Mr. Chai’s question, social networking, e-commerce, and games do have a lot of data interaction in Web3, which can generate value.

During the Q&A session, Richard Wang answered questions from the audience:

Q: What risks and challenges will Web 3.0 encounter? Is it a hype or a hype?

Richard Wang : As I mentioned earlier, Web3 is because some institutions and startups in the United States have been communicating and interacting with each other, so it is indeed a hype, but there are good and bad hype, in fact, hype is also necessary Yes, it is inevitable. In fact, this thing does not only exist in Web3. Three years ago, the state advocated chip design semiconductors, and then two years ago, it talked about the medical industry. In fact, the wind and hype are necessary things in the entire economic system. Coming in with entrepreneurs is not a bad thing, it is an inevitable thing, of course we have to see whether this thing can be sustainable, or whether it can really produce some good companies. So looking back, let’s see that the so-called Internet bubble in 2000 was also a bubble. We called it the Internet bubble. Indeed, when this bubble occurred, a lot of capital came in, and a lot of startups came out, of which 90% It was drained, 90% of the capital lost money, but the remaining 10% has created the growth of these big Internet companies such as Amazon and Facebook. We benefit from him today, in terms of our lifestyle. , experience in the Internet and so on. We have further improved one by one. Why are we going to dissect those Web2s today and make them Web3, because society needs to progress, and human civilization needs to progress. If there is no Internet bubble in 2000, there may be no Tencent, no Facebook, no For companies like Amazon, your progress may be slower or stagnant. The so-called hype and hype are inevitable and necessary, but which investors and entrepreneurs have the ability to bring the company to the next stage, and which investments People have the ability to see a hero, Bole knows a thousand miles, can really find a good project, and then follow along. I think this is the key, the key is not the hype or hype, if you think it is not good, it is also It is necessary, but I will look at it in a more positive sense, and it is still a more positive form and manifestation.

Q : How about the first three Web3.0 tracks that can be seen in Silicon Valley, Mr. Wang? Can you introduce it?

Richard Wang : First, I think the Web3 thing is definitely an advantage for American startups. First, there are indeed more talents; second, he really has such a soil to let Web3 project to grow. I can’t actually say the so-called top three, but I can give some examples, for example, from a technical point of view. Everyone knows about decentralized storage, right? Storage is very important. It is a basic equipment. If everything is not stored today, basically life will not work. If you don’t store it, it won’t work, right? If you don’t store it in your brain, you will know if there is something wrong with this person.Storage is very important, so what about storage, everyone thought, does it exist in China Mobile’s computer room? Is there still an Amazon machine room? Or Huawei computer room? There are certain risks, and the cost is quite high.Storage is also the foundation of Web3. Let me extend it further. The foundation of Web3 just talked about three elements, right, remember? AI, Edge Computing and this fractional data network, but Web3 has some infrastructure, such as decentralized storage, decentralized communication, decentralized computing power, etc. These are allinfrastructures, so decentralized storage is Web One of the cornerstones in 3 , I will talk about this premise. So everyone knows that storage is necessary, right? If it can make a very good so-called distributed storage solution, then it is really a great company. We have seen a few similar ones in the past few years, but they It is not perfect and perfect, there are many shortcomings, but it will definitely be better in the future, and it must be better, so what can be done after these better? It allows you to store photos, information, videos, etc., which are very easy to store in, and very easy to take out.Nowadays, many solutions are easy to store but not easy to take out. Some solutions can only store pictures, but not videos, etc., so many are incomplete. I believe that there will be great companies in this field. Let me tell you another example, called decentralized communication, this may not be particularly related to this issue, but there are indeed decentralized communication projects in the United States. Everyone knows that communication is very critical. Suppose our operators are doing evil today? Your phone bill is obviously 500, and the operator tells you that it is 600. In a centralized state, you can only listen to him. Or what if the operator goes down? If the operator loses the mobile phone number, there is no way to prove that the mobile phone number is yours, so there is a need for decentralized communication. What if the operator collapses? So this is a basis for Web3, there will be no so-called decentralized operators in the United States, South America and even Africa. So why is it a centralized operator now? First, the frequency band is owned by the government and requires a high cost to obtain licenses, so operators need to invest heavily; second, it is also expensive to buy base stations, so operators must be centralized. So can 10,000 people be a decentralized operator? The answer is yes. One person spends 100,000 yuan to buy a base station, and puts 10,000 base stations in Shanghai to operate, and the decentralized operator is 10,000 people. How to make money? Just like China Mobile, you can make money how China Mobile makes money, it’s that simple. This concept is a bit of a brain hole, right, but nothing is impossible.

Q: Many people are arguing whether Web3 is a false proposition or a matter of time. In which case do you think it will be used on a large scale in which scenarios? How long do you think it will take?

Richard WangIn fact, complete decentralization may not be necessary. Not everything needs to do this. You can have a so-called compromise, that is, there are some key nodes that can do it. We are called verifiers, so no need Complete decentralization, some may be better to be completely decentralized, and some may be weakly centralized. Whether you need it or not depends entirely on your application scenario and the nature of your users. The second one, as I mentioned earlier, there are actually many, many fields in Web3, which may all be fermented in Web3 first, such as social networking, e-commerce and games just mentioned. The game level is already relatively mature, just what time do you look at? In fact, there are some game projects that are more inclined to Web3 this year. What I call a Web3 game project, such as its development engine is open and open source, then there are various types of game projects. Such creators can come in and use the development engine. There is no centralization, which means that you can create a variety of different games. Then, you may have these users interacting with data. This is a kind of preliminary Web3 concept game up. So even, you can play two games developed by team A and team B through technology and NFT mechanism. This may not have been thought of before, because the first, the engine is the same, the second, if you have a middleware, you will define it, a bit like this 3G communication protocol, there are WCDMA, CDME2000, TD-SCDSMA, But in fact, different protocols can be used to make calls. This is called cross-platform interoperability. This has already appeared in the game. Of course, it can bring commercial value. We can’t conclude it today, but it has already appeared. I think that in the field of e-commerce, like the social field, it should appear next year, but we have seen it in Southeast Asia and Africa, because they do not have the so-called giants to monopolize, so there are many innovative companies in Southeast Asia. Africa has started to use some Web3 concepts to import their e-commerce platforms. The example I just mentioned is the same. Amazon has the advantages and disadvantages of Amazon, and Taobao’s Taobao has advantages and disadvantages, but as a platform, there are things that it wants to control, and only what the platform is willing to give, through the concept of Web3, you can It is better to combine manufacturers and users, and turn centralization into a weak neutralization. Then social is also, especially the social-related ones developed by Mr. Chai. There is not only so-called Fi in social, all food, clothing, housing and transportation are related to transactions, all social and Fi, and social-related things can be very good Progress, but indeed in SocialFi The Web3 project of the domain will not be seen until next year and the year after, because its design level is actually relatively broad, including the level of privacy, and some personal data protection laws were also introduced in China last year. In fact, if you want to meet the regulations, your socialFi needs a long operation to cooperate with them before you can do it. Recently, we have seen some interesting projects related to insurance. Insurance is also a kind of socialFi. Why? Because insurance is social insurance, so insurance is social. Is insurance Fi? Of course, to pay insurance money and receive compensation, it involves wealth and finance, and it must be Fi, so insurance is socialFi. Are there any legal restrictions on insurance? Of course, the Insurance Regulatory Commission. Does insurance have anything to do with privacy? Of course it does. Which hospital did you go to today? What’s wrong? The patient does not want to let the insurance company know, but because he has to, because there is no privacy protection, if a layer of privacy is added today, the insurance company only needs to know the answer, which is called “Should be compensated or not”, and he does not need to know what the disease is . The insurance company only needs to use a black box, plus artificial intelligence and privacy protection, to come to the conclusion of whether it should be compensated and how much to pay. The insurance company has no right to know what kind of illness you have. Therefore, these scenarios will be applied in various fields in Web3, which is also related to the progress of society. If the legal system is not complete enough, these projects will not be able to come out, and they will be lame when they come out, because you have to walk on the edge, you have no way to do this. If it becomes a universal value, your commercial value will not be reflected.Because there is no privacy protection, if a layer of privacy is added today, the insurance company only needs to know the answer, which is called “Should pay or not”, and he does not need to know what the disease is. The insurance company only needs to use a black box, plus artificial intelligence and privacy protection, to come to the conclusion of whether it should be compensated and how much to pay. The insurance company has no right to know what kind of illness you have. Therefore, these scenarios will be applied in various fields in Web3, which is also related to the progress of society. If the legal system is not complete enough, these projects will not be able to come out, and they will be lame when they come out, because you have to walk on the edge, you have no way to do this. If it becomes a universal value, your commercial value will not be reflected. Because there is no privacy protection, if a layer of privacy is added today, the insurance company only needs to know the answer, which is called “Should pay or not”, and he does not need to know what the disease is. The insurance company only needs to use a black box, plus artificial intelligence and privacy protection, to come to the conclusion of whether it should be compensated and how much to pay. The insurance company has no right to know what kind of illness you have. Therefore, these scenarios will be applied in various fields in Web3, which is also related to the progress of society. If the legal system is not complete enough, these projects will not be able to come out, and they will be lame when they come out, because you have to walk on the edge, you have no way to do this. If it becomes a universal value, your commercial value will not be reflected.

Q: What is the difference between foreign Web3 and domestic situation?

Richard WangI left the country this year and went out for a while. After I arrived in Taipei for a month, I went to our headquarters in Silicon Valley. I also stayed in the United States for more than two months, and then I also went to different places in the United States, such as this Austin, when I arrived in Miami, I came into contact with some other entrepreneurial projects, especially in the United States, so I was particularly impressed by the many entrepreneurial projects in the United States, because first of all, they were more open-minded and more open-minded; second, The United States is not only a Silicon Valley talent, but also has a lot of talent in Boston. Overall, the United States is definitely ranked first. Of course, our country is closely following the second, so they have many, many entrepreneurial projects, based on what this team can imagine, whether it is to The market that we do is still the ability and resources of the entire team or they can develop products or services, which are indeed relatively high in quality. In fact, our investment has also been learning, for example, we and our Draper Dragon has been investing in the blockchain industry since 2015, and we have continued to learn from entrepreneurial projects during the seven years. We did run around in the United States and watched many entrepreneurial projects of entrepreneurs. It is also a learning process. To understand, we must have the courage to imagine things you have not imagined before, and open our hearts to accept it instead of rejecting it. Impossible, nothing impossible, just how much it costs. After that, I went to Dubai again. I met many domestic compatriots in Dubai, and also in Abu Dhabi and Dubai to find out with some so-called noble friends in power, whether they really want to develop here in the future. This kind of idea, whether you are willing to invest some resources, attract many entrepreneurs, and even attract a lot of American capital, and cultivate there. In fact, you can see that there is a book that seems to say that the earth is flat, that is, the world is one, but it does seem to be very differentiated now. , Southeast Asia or the Middle East will form its own system, and there will be many ecosystems to develop in the system, so I think it is worth looking forward to the next two or three years in Dubai. I also went to Singapore, so everyone knows that many entrepreneurs from China have also gone to Singapore to start businesses in Singapore. Then the Singapore government itself may also belong to the first place in Asia in terms of the digital economy. Singapore is a very good base in Asia and Southeast Asia except China. It has a good soil to cultivate these digital economy projects and so on, including Web3. In addition, the Singapore government has also made progress in terms of policies. It has issued more friendly policies related to the digital economy, which are also more suitable for the implementation and growth of some of our projects that are biased towards the digital economy. So all in all, I think there is indeed a lot of development in China, for example, there is Hainan in China, there is a free trade port, etc. In fact, our fund is also landing in Haikou with some digital economy policies in Haikou, some government’s Launched plans to do docking and cooperation. We believe that in addition to the digital economy, there is definitely a good space for development in China, especially for many Internet applications. If some major cities, such as Haikou, Shanghai, Hangzhou, and Beijing are used as a foundation, It is also possible to form a certain such ecosystem, in terms of the development of the entire digital economy. There are also many developments, such as Hainan in China, a free trade port, etc. In fact, our fund has also landed in Haikou to cooperate with some digital economy policies and some government plans in Haikou. We believe that in addition to the digital economy, there is definitely a good space for development in China, especially for many Internet applications. If some major cities, such as Haikou, Shanghai, Hangzhou, and Beijing are used as a foundation, It is also possible to form a certain such ecosystem, in terms of the development of the entire digital economy. There are also many developments, such as Hainan in China, a free trade port, etc. In fact, our fund has also landed in Haikou to cooperate with some digital economy policies and some government plans in Haikou. We believe that in addition to the digital economy, there is definitely a good space for development in China, especially for many Internet applications. If some major cities, such as Haikou, Shanghai, Hangzhou, and Beijing are used as a foundation, It is also possible to form a certain such ecosystem, in terms of the development of the entire digital economy.

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