NFTs & The Future Of Web3 Ownership
A case study on opensource economies
There is a divergence between opensource and decentralization and how the decentralized model of ownership can positively affect how opensource or public goods are produced, distributed and consumed within a decentralized economy.
I gave this Talk at the ##OSCAFest22 of the Opensource Community Africa Festival in Lagos, Nigeria
Name: Olajumoke Njoku
Ola is a lead Backend Engineer at NuBank
She thinks their NuBank platform is going to
revolutionize the future of Corporate
She’s committed to ensuring that the value
proposition of X-Bank is communicated to
prospective users and customers
They are a small team of hackers - Move fast break things
On a fateful Friday
Turns out that, One of the Distributed Micro-Serverless — Asynchronous Event Driven
HTTP Lambda Service was erroring out when utilized from the demo application.
Their Logging Software was
affected by a glitch.
Zalgo text is digital text that has been modiﬁed
with combining characters, Unicode symbols
used to add diacritics above or below letters, to
appear creepy or glitchy
Marak Squires has been the maintainer for the open source packages colorjs and fakerjs,.
However, on the 8th of January, 2022 — He pushed a commit that made history, the bad kind
Sustainable Open Source
Open source software is a public good. So the paradox which everyone asks themselves
is "if everyone can beneﬁt from it for free why should I have to pay?".
Public Goods & The Free Rider Problem
The production of public goods results in positive externalities which are not remunerated. If a
maintainer / contributing organization do not reap all the beneﬁts of a public good which they
have produced, their incentives to produce it voluntarily might be insufficient.
NFTs & The Future Of
A case study on opensource economies
The Open Source Economy
For Opensource to thrive - sustainability should be designed alongside, the
components that make sustainability possible are deﬁned within an opensource
Characteristics of an Opensource Economy
There is shared ownership of inventions
in opensource where every contributor
owns and shares their output
Not strictly economical, however
people are incentivized by the
greater good of their contribution
Open-source cannot survive without
collaboration & coordination of efforts
from several individuals or orgs.
The licence structure of
open-source projects allow them to
be used in the public domain
Resources required to produce in an
opensource economy are usually packaged
and shared among contributors
The outputs / artefacts that are
delivered in an opensource economy
is shared in non-restrictive manner.
Characteristics of a Decentralized Economy
Peer 2 Peer
Execution of actions in a decentralized
economy are driven by peers in a
Every action or event in a
decentralized economy is open and
visible to all
Ownership can be cryptographically
proven without third parties.
Actions in a decentralized economy
are driven by code / software
Events and actions in a decentralized
economy are append only and cannot be
deleted, edited or modiﬁed.
Wait a minute
On the 9th of January 2009
A man named Satoshi mined the ﬁrst
block of a Blockchain powered
Bitcoin was created On the heels of
an economic recession.
This singular action of mining the
Genesis block kick-started the Web3
Economy as we know of it today.
We need to understand the 3 distinct components of economics
Production refers to the process of creating utility.
Now that utility needs to satisfy human needs for it to be:
And when there is a circulation of value from said Utility,
We successfully have
An Economy with
no 3rd Parties
That was Peer to
And relied on computer
algorithms to execute their
contract without any
In order to facilitate
Consumption & Distribution
we needed Utility!
There was a problem, and Bitcoin alone wasn't enough to
meet this need. This is when Ethereum came along —
Ethereum is the ﬁrst programmable blockchain that gave us
to ability to create Utility on top of the blockchain Network,
This was pioneered by SMART CONTRACTS.
These interfaces are deﬁned through a Proposal
structure known as EIP - Ethereum
EIP - 2615
EIPs are deﬁned and proposed as code that can be referred to as Smart Contracts.
ERC-20 powered Marketplaces,
Goods & Service Providers
Though this wasn’t the ﬁrst standard to introduce
an Ownership Model on the blockchain.
ERC-721 drove the adoption of ownership across
ERC-721 created what most people refer to as
What is a NFT?
An NFT is a secure, blockchain-based
certiﬁcate that represents an
entitlement its owner has to a
(usually) digital or physical asset (e.g.
artwork or music) or experience (e.g. a
In all of these
You own the car
accompanied with a
You rented the
You own those nice
pair of jeans
Did you know?
The shared output nature of opensource signiﬁes, co-ownership
of contributions, pull requests, commits, documentation and
All contributors / All producers
We all play a role in the production, distribution and consumption of
outputs in an opensource economy
We are distributors
When you publish your package to NPM, Cargo etc. You are
essentially facilitating Distribution
We are Consumers
Whenever you run npm install, pip install, cargo install etc.
You are facilitating consumption of an opensource project
What they have in common?
Signiﬁed by a Commit HASH - Someone ones the right to a commit identiﬁed by signing a commit or using their email.
Identiﬁed by a Transaction Hash that commits the provenance of ownership to an address on the blockchain
digital ownership that is provable unique,
veriﬁable, immutable and scarce
What can NFTs provide in an Opensource Economy?
In this economy, producers are empowered to create with the capacity to fully own
every form of yield from their creation, while distributors are incentivized through
tokens and more to facilitate consumption
How NFTs are pioneering the foundations of ownership
for producers, consumers and distributors in a
Coordinape empowers communities like BanklessDAO, Developer DAO,
Metacartel and more to empower Community Members and NFT Holders to
coordinate contributions in a decentralized manner.
Creating a the Social Graph Protocol
that allows you own and control
your social Interactions as NFTs
Everything we need to coordinate
communities, organizations and projects in
order to produce, distribute and consume
Public Goods (a.k.a Opensource) in a
decentralized economy has been provided.
So the question is, What will you BUIDL?
Thanks for attending my