Curiosity

Welcome to Web3

“Where should I start?”

I hear this a lot when web3 terms like decentralization, blockchain, cryptocurrency, NFT, minting, gas fees, DAO, smart contracts, dapps, metaverse, tokenomics, and wallet addresses emerge in conversation. This month we’ll explore this futuristic frontier together!

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Before we drip in, it’s good to recognize that there is already a ton of research, content, and resources around web3 online. I share this disclaimer to add an approachable sense of lightness here. My goal is to share some early observations while teaming up with a few web3 crusaders to help translate a few compelling concepts. Whether this voyage is the first time you’ve heard of web3 or this is just another island in your ongoing exploration, pour another cup of curiosity and let’s drip in.

Back in the 1990s, we dialed up and waited for CDs in the mail to avoid paying for every minute of access to the world wide web. This early version of the Internet was built by developers and primarily delivered content in one direction. Websites were static and really only available for people to read. This read-only experience is referred to as web1.

With the rise of personal computers and online connectivity growing fast, around 20 years ago, the Internet started paving a two-way street. Remember endless chats on AIM? How about the sense of belonging on bulletin boards, the first time you managed your own content on a website, or the time spent designing your MySpace page? The ability for everyone to read AND write into the Internet is our current state and can be considered web2.

As supercomputers landed in the palm of our hand, the bionic connection to machines accelerated the connectivity worldwide and ushered in our connected era. While such affinity allows us all to do more with less, the platforms that support this connectedness have become centralized. This gives immense power (and liability) to organizations that control ownership, data security, privacy, and scalability. As our shared dependency on technology fed web2 archetypes, humanity became numb to the endless exchange of our personal data for convenience. This convenience has activated absolute accessibility, but how can we now use the connected era to power what’s next?

web3 is a concept that describes the future of how we will connect, communicate, and collaborate online. Web3 technologies strive to optimize opportunity with distributed, permissionless, transparent, proportionate, and verifiable decentralization. If web1 was read-only and web2 is read+write, web3 is read+write+own.

If your jargon alarm just exploded, it’s because this space is still undefined. There are few industry standards, as we’re in the midst of labeling a wide variety of efflorescent activity. One interesting thing about web3 jargon, is that it often describes things we already know. Advancing technology supports key attributes that make web3 concepts different, but here’s what I mean. Currency for instance, is the oldest story humans have used to exchange value. Access to a securely shared database is old hat for web2 wizards. We’ve lived in Sim City long before the metaverse, everyone already has flight tickets landing in digital wallets, and communities always thrive when they are brewed from within. That warm take is not to discount the magic that may be web3, but instead, to make it feel less distant. As web3 concepts move through the technology adoption life cycle, innovators and early adopters will continue to agree on terms that help translate the way different technologies work together. Tomorrow is today and as innovative ideology is normalized by mainstream adoption, it will be fascinating to see what concepts prevail.

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No AI support was used in this writing.

Let’s temporarily terminate this approachable welcome to web3 by chewing on key terms. With this being a working draft (current version below) supported by linked resources, take one more minute to give yourself a serious boost of confidence as we continue to explore web3 together.

Decentralization – Sufficiently transitioning from single authorities to proportionately deliver verifiable ownership, access, control, transparency, communication, and governance to many stakeholders.

Dapp – A decentralized application built on a decentralized network that combines a smart contract and a frontend user interface. <more on dapps>

Wallet – This is your tool to access the world of web3. A wallet is used to interact with dapps, store public/private keys, and connect digital assets to a specific network location. Each wallet has a unique wallet address that can be used for cryptocurrency transactions and digital signatures. <more on wallets>

Wallet Address – Wallet addresses refer to a specific location on a network and look like this: 0xb794f5ea0ba39494ce839613fffba74279579268. These hexadecimal strings are generated from the wallet’s private key, which is required to securely send or receive data from one address to another. Like URLs for a website, ENS masks long wallet addresses with more approachable names like yourname.ETH. A wallet address can be treated similar to an email address and shared with care, while seed phrases and private keys should never be shared.

Blockchains – A decentralized immutable system that records every transaction with transparent logs on a dynamic ledger. There are private/permissioned and public/permissionless blockchains, with different levels to build on. <more on blockchains>

Smart Contract – Code-based agreement that establishes terms for how a transaction is executed for stakeholders involved, automated governance, arbitration procedures, and more. <more on smart contracts>

Cryptocurrency – Fungible assets used to support immutable financial transactions between stakeholders. There are four categories (payment cryptocurrencies, tokens, stablecoins, and central bank digital currencies) and over 20K+ different cryptocurrencies that total a market capitalization of $850B+, with Bitcoin (BTC) and Ethereum (ETH) maintaining the largest market caps. <bitcoin white paper>

DeFi – Acronym for decentralized finance, which helps to weave cryptocurrency into the existing financial industry. <more on DeFi>

NFT – Short for “non-fungible token”, these are unique digital assets that use smart contracts to connect to blockchains, which autonomously applies, tracks, and transfers digital signatures and verifiable ownership. Non-fungible means that something is unique and can not be replaced. In contrast, physical money and cryptocurrencies are fungible, as they can be traded or exchanged for one another. <more on NFTs>

POAP – A proof of attendance protocol, which uses NFTs as tickets for an event or attendee confirmation at IRL (in real life) and online events. <more on POAPs>

Minting – The process of locking a cryptographic asset (such as an NFT) into a blockchain.

Airdrop – Giveaways sent to a digital wallet. They provide a creative way for people to share assets with each other, with senders usually paying any gas fee. Be skeptical of anything you receive that is airdropped from an unknown source. Like clicking links or opening attachments in emailed spam, there are poisonous airdrops that can force access into your digital wallet when a malicious item is transferred. To be safe, if an unrecognized airdrop lands in your digital wallet, leave it alone.

Gas Fee – One-time transaction fee to cover the dynamic costs of computing, electricity, and network verification required to interact with blockchains.

DAO – Acronym for “decentralized autonomous organization”, which can be compared to organizational structures like co-ops, LLCs, or venture capital firms. The specific structure, treasury, rules, and governance depend on the DAO and the group’s collective goals. <more on DAOs>

Metaverse – Interoperable virtual environments where users can interact with each other from anywhere. The rise of virtual and augmented reality has led to more immersive experiences.

Tokenomics – The abstract study of how digital assets work within social economic frameworks. Theories can range from how value is strategically perceived within a small DAO, all the way up to the global economy.

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By Ben McDougal, ago

Canvasing

The New Year is already starting to feel like old news, eh. Let’s shake off that early temptation to push your new idea toward someday. Look, I get it. There was intoxicating enthusiasm when you first thought through everything over the holidays. As you’ve returned to routine, the idea that felt like it was the one & only thing that mattered, now seems to be falling down your priority list.

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This is normal, but we’re not normal!
We are the weird who make a ruckus.

After some creative wireframing, I challenge you to setup (at least) two meeting to breath life into this budding idea. First, meet with a #givefirst mentor. This should feel like a supportive space, but avoid rainbows and butterflies. Be realistic by sharing the exciting aspects of the idea, but also the challenges. As discussed in YDNTB, a fast no is much better than a long, wrong yes. That said, playing it safe is easier than activating initiative, so don’t let early doubt slow you down. Instead, welcome it. Let this energizing form of curiosity uncover new understandings. Pivots are inevitable and this exploration adds confidence as the original ideal is tweaked toward product-market fit.

After transparently talking with that trusted mentor, the next meeting is with a potential customer. This will feel too early, but it’s not. Your actually protecting your personal bandwidth by not swinging at a bad pitch too many times. Be smart to optimize these early interactions. Arrive prepared to ask good questions. Take notes and speak less so you can actively listen to how this potential early adopter is responding. Are you building a pain killer or vitamin? Remember, feedback is data and this is only one data point, but let this conversation absorb reality into the idea. Show up, stand out, follow up, stay connected by accelerating their work, and let’s keep building.

To do so, let’s continue brewing into this month’s theme of early moves. The business model canvas is a tool for crafting a story that sells. Here is a business model canvas that includes a little extra encouragement.

As we dive in, I’d like to share a suggested cadence from a friend of mine. Based in Sacramento, JDM is a fellow founder, entrepreneurial ecosystem builder, and tenacious content creator. He will be sharing a caffeinated contribution soon, but the way he moves through the business model canvas caught my attention. In short, most business models can’t be told in one story so it’s not one box at a time, but one story at a time. Instead of trying to boil the ocean, organize different stories for each customer segment. I’ve numbered each box in this downloadable business model canvas as a friendly guide.

  1. Customer Segments – Start with the details of a particular type of customer. The goal isn’t to complete the Customer Segments box. It’s starting a story to follow through the rest of the canvas. Now lean into the pain as you move from box to box and watch as your solution transforms into a story.
  2. Value Propositions – Based on this single customer, outline the value you’ll deliver.
  3. Channels – Where will your business connect with this specific customer?
  4. Customer Relationships – Who are you working with and how will collaboration feel?
  5. Revenue Streams – Based on the first four boxes, what’s the exchange the value?
  6. Key Activities – To deliver on the promise, you must execute with action(s).
  7. Key Resources – Using all seven capitals, here’s what’s needed to keep building.
  8. Key Partners – We can do more with less in the connected era. Who helps you get where?
  9. Cost Structure – The financial capital needed to go from problem to solution.

By telling the story of how you’re creating value for one customer segment, hypotheses connect through all nine boxes and are properly contextualized. Now add more stories, one at a time. To stay organized, use a clean business model canvas for each customer. With different stories told for each customer, color code each story as they are merged into one business model canvas. As everything blends together, the rainbow of color creates a roadmap to reality.

By Ben McDougal, ago

Not to Lose

I’ve been around soccer the majority of my life.

Whether it was traveling with the college team my dad coached as a kid, playing club soccer at an early age, focusing on the sport in high school, playing all through college, or being the product of my first entrepreneurial venture, soccer was a part of my identity for over 20 years. This team sport helped me push to be my best, but the sense of belonging is what made it special.

As I’ve enjoyed the World Cup in Qatar, I’m reminded how easy it can be to get ahead in a match, before slipping into a dangerous trap. Instead of staying sharp by maintaining the offensive pressure that earned an early lead, it’s tempting to start playing not to lose.

In soccer, this often means a team sinks back into an overly defensive formation. Less variety invites frantic desperation and the added pressure often leads to an equalizing goal being scored by the opposing squad. Even if the need for another goal shifts your team back into a more balanced attack, the momentum has shifted.

When applied to business, getting ahead and then playing not to lose can be seen all over the map. For instance, snagging a few early adopters, then assuming customer discovery is over. Hiring new talent, then hoping everyone can work together without initiative. Launching a new product with existing customers, then not supporting them through the chasm of change. Securing product-market fit, then avoiding innovation due to a misguided sense of risk. Finding generous mentors, then forgetting to nurture relationships. Those are just a few, but many leaders are lulled into this trap that’s defined by a sense of scarcity.

Tactics to stay ahead differ based on situational factors, but when in doubt, trust that uncertainty is certain. Be strategic to avoid recklessness, then stay on the offensive by leaning into the pain. As you find fresh ways to serve customers, continue celebrating milestones and stay ahead with initiative to keep building beyond the fear of losing.

By Ben McDougal, ago

Intrinsic

We all have bad days. When they string together, the stress gets heavy. This mental weight becomes especially unwieldy when the cause is unclear. After a couple down days, I went searching for the origin of my cloudy mood.

Along with insight on entrepreneurship, venture capital, and community building, Brad Feld talks a lot about mental fitness. The entrepreneurial lifestyle is a lonely roller coaster and I’m thankful for leaders like Brad (and many others), who have helped destigmatize the complex circuitry between leadership and mental health.

I found this entrepreneurship & mental health series from Techstars helpful, then wove in this 2015 interview to translate my temporary despair. Brad talked about how he’s gone through serious bouts with depression and through those challenging times, he’s been able to identify one of his intrinsic motivations to be perpetual learning. He went on to describe how even when he was busy and perceived to be successful, if boredom began to set in, an isolating absent of joy may soon follow.

This gave me clarity. I realized that one layer of my own intrinsic motivation is also learning. I like being in situations where I’m exposed to new things, thinking about fresh ideas, solving interesting problems, hearing stories from different people, and building into things I really care about. When there’s a lull in the action, it’s easy to think the ride is over. While this thought is misguided and untrue, it’s still disheartening. Mental fitness means something different for everyone, but here are a few exercises I plan to maintain within my practice.

  • Link learning with teaching.
  • Recognize that the storm will pass.
  • Find trusted peers to release tension.
  • Use this stimuli of stress to focus.

Adam Grant reminds us that strength does not come from ignoring pain. It stems from knowing that your past self has hurt and your future self will heal. Within the crucible of entrepreneurship, hardship is inevitable. Radical self inquiry keeps leaders aware of their mental fortitude. Such awareness then helps us maintain and uncover new stepping stones that illuminate our own path to thrive beyond momentary setbacks.

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Calm is one of my favorite apps. The guided meditations and sleep stories are a healthy aspect of my daily routine. Here are 10 ways to boost your mental fitness, a mental fitness training guide, and free mindfulness resources from these focused friends.

By Ben McDougal, ago

Extra Credit

I have always loved listening to stories. 

At home, my parents used to tell me stories whenever I’d go to sleep. In school, I enjoy listening to friend’s and telling my own stories as well. Lately, my growing interest in entrepreneurship has me listening to people discuss their entrepreneurial journeys. These stories of solving problems and building a business have captured my attention, but I had to go beyond the status quo to find them.

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This caffeinated contribution was written by Ani Soni. Anirudh is a student who is becoming indispensable as he explores entrepreneurship within a startup community.

As a student in high school, there are a few classes, programs, and clubs that hint at what entrepreneurship is all about, but they lack heart, let alone the realities that come from actually building a startup or small business. I enjoy hanging out with my friends, but they don’t share the same interest I have in building my own company. My family is supportive too, but I really haven’t had a way to consistently share stories about building a business.

To fill this storytelling gap, I started looking for ways to meet other entrepreneurs. While it took a little research, I found many ways to meet people who own their own business. I’m eager to continue exploring “entrepreneurial ecosystems”, but I feel lucky to have chosen to first attend a weekly program called 1 Million Cups. Attending 1MC has allowed me to listen and learn from the stories of entrepreneurs, but showing up wasn’t easy.

I was so nervous at first! As a high schooler, I wasn’t sure if or how to show up. I assumed everyone was more qualified and successful. I didn’t think I would be able to understand, let alone contribute to the conversations. In my own mind, I didn’t belong and it was like I didn’t deserve to be there. It would have been easier to say, “maybe someday”, but I’m glad I decided to take the training wheels off.

When I arrived that first Wednesday morning, everybody was welcoming, kind, and incredibly interesting! I was thirsty to return after experiencing the generous energy this room of fellow students, entrepreneurs, intrapreneurs, and community builders exuded. Attending 1 Million Cups week after week, I now realize that people of all ages enjoy sharing stories just like me. Entrepreneurs sure like helping one another as well!

It’s only been a few months, but I already feel connected to this community of entrepreneurs. In fact, I’ve offered to join the volunteer 1MC organizing team, because I’ve seen how stories create a bond, and perhaps that’s what it’s all about. No matter where you’re at within your own journey, I’ve learned we are not alone. Everybody helps everyone grow. Now I’m on a mission to learn from more entrepreneurs, to build into my own ideas, to ask for help, and to accelerate others however I can within the entrepreneurial ecosystem.

By Ben McDougal, ago