MSV Podcast Morningstar Ventures

Guests:
Sami, CEO of Cross The Ages Leo, Founder of STYLE ProtocolThe Big Brawler, CEO of Bit Brawl
Top 3 Key Takeaways from Our Guests

1. Web3 gaming has changed with recent market conditions 
At the roundtable, we asked our speakers to share their thoughts on how recent market conditions have affected the Web3 gaming industry, particularly compared to the previous cycle. The speakers agreed that in the previous cycle, many games capitalized on the success of Axie Infinity, resulting in a surge of play-to-earn games. However, due to the time it takes to develop a game, market constraints restrict availability and accessibility. Games take years to build, which means that we are yet to see progress and adoption. Nonetheless, there are some great games currently available that could succeed in the upcoming bull run. Additionally, the speakers mentioned that in this cycle, many games emphasize cross-functional assets and interoperability, which makes the ecosystem more engaging.


2. Balancing fun and financial rewards is still a driving narrative within Web3 game development

One of the speakers in the roundtable expressed skepticism about the current state of web3 gaming, citing a lack of proper valuations and an imbalance between marketing and gameplay. They believe the industry needs to focus more on creating a fun and engaging gaming experience to attract more users. Another speaker emphasized the importance of balancing fun and financial elements in crypto games and highlighted the need for iteration and user involvement. According to this speaker, finding the right balance between the two elements is crucial to ensure that the game is both enjoyable and rewarding. The third speaker shared their perspective on creating a fun and engaging gaming experience, highlighting the need for iteration and finding the right balance between information and ownership. They believe it is vital to keep the game simple and easy to understand while giving players a sense of ownership over their assets. Overall, the speakers agreed that there is still a long way to go before web3 gaming becomes indistinguishable from web2 gaming, but they are optimistic about the future and see great potential in the industry.


3. Virtual assets need to be interoperable across blockchains

The speaker suggests that virtual assets should be interoperable across different environments. With so many virtual environments emerging, it is not feasible for people to have their assets in each environment. They believe that projects making virtual assets resellable long-term across different virtual environments are crucial. The speaker thinks that a few big players will emerge as the primary infrastructure providers in the market for virtual asset infrastructure, similar to the telecommunication industry.

The New Era of Privacy
Guest: Shahaf Bar-Geffen, CEO  of COTIHost: Szabolcs Gergely, Podcast & YouTube Host at Morningstar Ventures

Top 3 Takeaways from Our Guest:

1. Privacy is not to be confused with anonymity 

Shahaf explained that privacy should not be confused with anonymity. Blockchain stands for transparency, but that doesn’t mean privacy is not required. Privacy is often recommended and required when a party wants to send sensitive data to another. Transparency and privacy can and do exist simultaneously, and that is what Coti wants to ensure so the cryptospace can take that next step and mature the industry.


2. Garbled circuits improve user experience.

Garbled Circuits is a new encryption technology that encrypts data quickly. The main advantage is the technology's “lightness". This feature allows messages and data to be encrypted and decrypted fast, improving user experience and ensuring easy usage for shareholders who want to transact on the blockchain securely and privately.


3. Who will benefit from this new technology?

Shahaf explained that there is no target audience because it’s for everybody. Anyone who creates almost any kind of dapp will want to use this technology, especially those who create financial services like Dexes, governance, and data-sharing platforms. However, the utility doesn’t stop with them. Privacy is crucial in various industries, e.g., healthcare, where traceability and transparency are important, but privacy is a must.

Guests:
Eden, Co-Founder of AARK DigitalRitwik Rudra, Co-Founder of SYNTHRBrian Gallagher, Co-founder of Partisia Blockchain
Top 3 Key Takeaways from Our Guests

1. "There are still significant adoption hurdles for DeFi"
The speakers emphasized that user experience (UX) issues are the primary obstacle to the wider adoption of DeFi solutions. They pointed out that challenges such as wallet experiences and incentives still pose significant adoption challenges. Additionally, they suggested that there is a pressing need for user support in the DeFi space, and highlighted the importance of providing more customer support to help users better understand these tools.


2. "Having multiple blockchains is necessary for innovation and quality improvement"

During our discussion about the future of the crypto space and its impact on DeFi, the speakers had differing opinions. While one speaker wasn't convinced that RWA, AI, and SocialFi would have a lasting impact, others saw great potential in these areas and believed synergies could exist. Additionally, there was a debate about the need for new blockchains and whether Ethereum was the only one required. However, some speakers felt that multiple blockchains were necessary to drive innovation, create solutions that challenge other systems, eliminate issues such as high fees, and give builders more control.


3. "Creating a seamless on-chain experience is crucial for retail users and investors"

The speakers raised an important issue regarding DeFi. There are several problems with DeFi, such as high slippage costs, lack of liquidity, and VCs controlling tokenomics, which results in retail investors being excluded from participating. This makes it less attractive for retail investors to engage with DeFi. Therefore, DeFi protocols must continue to focus on interoperability and building efficient liquidity layers. This will lead to wider adoption and democratization of DeFi.

Shaping AI Ownership
Guest: Whitney Gibbs, Founder of RingfenceHost: Szabolcs Gergely, Podcast & YouTube Host at Morningstar Ventures
Top 3 Takeaways from Our Guest:

1. AI has positively contributed to our daily lives.
To kick off the conversation, we asked Whit what he thinks about AI’s effects on our daily lives. He explained that even though there are some negative effects on the media or social platforms, he finds AI’s contribution to our lives a significantly positive tool. He highlighted how AI improved medicine in recognizing unwanted cells or in the creative space and how AI can help somebody with a good idea who lacks graphic or content creation skills transform their vision into visual content.  

2. The AI industry must have a platform where creators are paid for their work. 
Whit carried on the conversation and highlighted that even though there are countless applications for Generative AI, the big companies are still unable to use them due to the unknown origin of the content. Companies are afraid of using content where the original creator is unknown or hard to determine as that could bring uncertainties from a legal point of view; therefore, a platform where the creators are paid for their work and the copyright is well established is a must to move this industry in the right direction. 


3. AI regulation should not get in the way of industry development. 
Finally, Whit explained that navigating AI regulations is not as complicated as it may sound. Existing regulations are a work in progress, and more is to be expected. However, if we apply common sense and operate in the AI industry as we would operate in more traditional business considering asset ownership and copyright, AI regulations should not get in the way of the development of this industry.

Guests:
Emile, Co-Founder of XDEFI WalletGabby Dizon, Co-Founder of Yield Guild GamesAltcoin Sherpa, Angel Investor & Influencer
Top 3 Key Takeaways from Our Guests

1. The following crypto cycle could be potentially more significant due to mainstream adoption.

During the roundtable discussion, our guests shared their reactions to the latest news in the cryptocurrency world. They discussed the approval of ETF and the upcoming halving in April. Although predicting the market's movement is complex, the guests agreed that crypto is becoming more accessible and inclusive. This leads to a growing community and an influx of capital, especially in anticipation of the next significant event. 
However, the guests anticipate that the next few months will still be turbulent, particularly regarding the price of Bitcoin. The Federal Reserve rates will continue to have implications for the macro environment and affect the market's movement.


2. Infrastructure and DeFi projects will need seamless integration to host the new influx of users.

We dove deeper into various crypto industries and what our guests thought about the development. Given Gabby’s background in gaming, he says that price adoption and crypto adoption will drive teams to create better products than they had in the previous cycle. With his background in wallets and infrastructure, Emiel added that user experience is vital in gaming, and companies like his need to ensure that wallet integrations are seamless for games to stay competitive. 

Segueing into wallets and infrastructure, Emiel also said that DeFi protocols would be on the sidelines in the upcoming year as the audience changes. DeFi will have to be democratized and made easier to use. The need for multi-chain-friendly tools and improving the user experience will be the way forward in the upcoming cycle. 


3. "This cycle's all-time high will be very different from what we saw in 2021"

In 2024, we can expect to see the growth of various narratives. Our guests all agree that last year, the trend was very much around SocialFi and NFTs. Since October 2023, more people have been talking about EVMs and RWAs, which also reflects the big projects in the market. With this being said and the trends foreseen in the coming months, Sherpa states that he is bullish and sees us reaching an all-time high in 2024/2025. 

However, how we reach an all-time high will be very different from how it happened in 2021. We will see more gradual growth in this cycle than sudden candle spikes. With that, all speakers advise people to continue to research, understand what is happening in the market, and take caution of people’s advice. 

The Secret of Good Data
Guest: William Simonin, Founder and CEO of Ta-daHost: Szabolcs Gergely, Podcast & YouTube Host at Morningstar Ventures
Top 3 Takeaways from Our Guest:
1. AI will develop from a “plug-in” to a tool we use in daily life.

To kick off the conversation, we asked William what he expects from AI in the future. William explained that AI is here to stay based on what he has seen in the past 5 to 7 years, along with everything around the 2023 AI boom. Right now, a lot of AI is mainly used as a “plug-in,” but in the future, AI will evolve to accompany us in our daily lives by helping us with chores and ways to make us more productive. This will mainly be fueled by the increase in usage among individuals and larger companies– for that, high-quality data and widespread recognition are needed for AI to reach its highest potential.


2. Ta-da is an application that enables the creation of custom data sets.

Diving deeper into the project, William explains that Ta-da aims to be a one-stop shop for big companies that need quality data. He goes on to share that Ta-da was created because of the expensive and bad-quality data currently on the market. Together with its community, Ta-da can create voice, text, or visual data. The current Beta app uses gamification to crowdsource and gather voice data from various users, which is then stored and authenticated on the blockchain via app users.

3. MultiversX’s strong community and fast transactions fuel Ta-da’s ecosystem.

William shared two reasons when asked why the team chose MultiversX as its underlying ecosystem. Firstly, the MultiversX community is close-knit and highly engaged, vital in any project's development. Secondly, it has fast transactions with low transaction fees. These two factors are pivotal in the future as the Ta-da will require a high output once it’s operational. William also shared that the team is looking into creating their blockchain, a type of L2, to further reduce costs and ensure market competitiveness.