A Primer, Landscape, and Thesis. A New Class of Digital Assets: Non-Fungible Tokens (NFTs)

1. @underscorevc
Primer, Landscape, Thesis
A New Class of Digital Assets:
Non-Fungible Tokens (NFTs)
Richard Dulude

2. @underscorevc
Primer
2

3. @underscorevc
Fungible Assets : assets that are capable of mutual substitution, interchangeable
e.g. oil, a penny, and bitcoin are all fungible assets.
Non-Fungible Assets : assets that are incapable of mutual substitution, not interchangeable
e.g. art, deeds, and diplomas are all non-fungible assets.
What the heck is a “non-fungible” asset?

4. @underscorevc
.
Why is this a big deal?

5. @underscorevc
This is a big deal.
ASSETS
NON-FUNGIBLEFUNGIBLE
TANGIBLEINTANGIBLE
DIGITALPHYSICAL
UNIQUEINTERCHANGEABLE
“Non-Fungible Tokens”
on public blockchains are the first provably
Unique Digital Assets
without a central intermediary

6. @underscorevc 6
ASSETS
NON-FUNGIBLEFUNGIBLE
TANGIBLEINTANGIBLE
DIGITALPHYSICAL
UNIQUEINTERCHANGEABLE
This will fuel an
entirely new wave
of tokenization and
market efficiency.
Tokenization 1.0:
Created Fungible Digital Assets
Tokenization 2.0:
Created Non-Fungible Digital Assets
“Non-Fungible Tokens”
on public blockchains are the first provably
Unique Digital Assets
without a central intermediary

7. Confidential & Proprietary @underscorevc
● Identity:
● Certification: r
● Collectibles:
● Physical Assets:
● Tickets & Coupons:
7
Use Cases
NTFs enable trustless verifiability of uniqueness and authenticity
(+ new forms of fractional ownership and tradability)

8. @underscorevc
Landscape
8

9. @underscorevc
OtherBroad Marketplaces Narrow Marketplaces Direct Swaps
Transact
Layer
Publish
Layer
ERC-721
ERC-998
ERC-420
Mint
Layer
Layer 2, Sidechain Platforms
Layer 1, Smart Contracting Platforms
Layer 0, Propagation Networks
Enabling
Infrastructure
Existing Cloud Infrastructure
Custody
Layer
The Non-Fungible Token Landscape

10. @underscorevc
Investing Thesis
10

11. @underscorevc
Transact
Layer
Publish
Layer
Mint
Layer
Enabling
Infrastructure
Custody
Layer
Investing In Enabling Infrastructure, Data, & Wallets
Layer 2: Interesting to Invest:
Layer 1: Interesting to Invest, but Challenging
Layer 0: Hard to Invest
Other: Interesting to Invest
Hard to Invest
Hard to Invest
Interesting to Invest
Hard to Invest

12. @underscorevc
A Few Years Out “... NFTs are A Pretty Big Deal”
“The next big thing will start out looking like a toy…” (Chris Dixon, 2010)

13. @underscorevc
What did we miss?