Web3 Social Club Token, permissionless innovation

Author: Mask Network

On July 2, 2022, BlockBeats hosted the Web 3.0 Master Class x Web3 Social Club Twitter Space with guests from MetaMask, Keystone Wallet, and Mask Network.

With the theme of "Permissionless Innovation," we invited MetaMask founder Aaron Davis (@kumavis), Mask Network founder Suji Yan (@sujiyan), and Keystone Wallet CEO Liu Lixin (@bitcoinlixin) to share their entrepreneurial experiences in Web3.

As a quick TLDR, they discussed how Web3 startups and entrepreneurs can collaborate with the open-source community, key aspects to pay attention to when facing team collaboration and funding challenges, the main innovative differences between Web2 and Web3, and some encouragement for Web3 newcomers.

Key Points

• Permissionless innovation is not a new concept. It originated from the frustration of Web2 giants controlling our data and digital assets. - Web3 technology is rapidly undergoing revolutionary changes, making it a hotspot for permissionless innovation. - Web3 provides builders with new opportunities for innovation and exploration.
• The main difference between Web2 and Web3 is that the latter is more open—people pay attention to each other and are willing to communicate about their work.
• Collaborating with the open-source community can help projects maintain a focused core team while reaching a broader pool of technically skilled developers.
  Key factors determining project success include timing; a shared ideal of serving users; luck; willingness to engage with the community; and maintaining the drive for innovation.
• Advice for Web3 startups: Keep communicating with the community instead of leaving them in the dark; reward loyal community members and listen to their feedback; maintain an open mindset and work closely with the open-source community.
• In the coming years, as Web3 fundamentally changes how people live, work, and interact, we will witness more permissionless and decentralized social networks.
• Use the bear market as an opportunity to build. Web3 veterans are already doing this, and every Web3 enthusiast should do the same.

The Arrival of Permissionless Innovation

Insights from Kumavis (MetaMask Founder)

The promise of permissionless innovation has existed since the invention of the internet. Unfortunately, as centralized platforms dominate the space, the spirit of openness has gradually faded, leaving little room for exploration and innovation. Fortunately, this has led to unexpected outcomes, with Web3 technologies like Ethereum achieving great success. A fitting example: in Web3, anyone can build their own extensions or experiment with new features without gatekeeper permission.

Why is MetaMask so popular? They do not assume what the blockchain should look like. Instead, they encourage community members to connect with each other, create their own applications and communities, enabling them to interact securely.

Insights from Liu Lixin (Keystone Wallet CEO)

Unlike Trezor or Ledger, Keystone is a QR code-based hardware wallet. Lixin cited the recent EIP-4527 proposal as an example. Without any third-party permission, any software wallet can be compatible with Keystone (note: hardware wallets can also be compatible with MetaMask by implementing EIP-4527).

The crypto wallet AirGap emerged, capable of turning any old phone into a QR code hardware wallet. Once in airplane mode, any user can connect to MetaMask by scanning the QR code on a phone with AirGap installed. Since the mnemonic phrase is only stored on the phone, security is further enhanced. Lixin believes AirGap is a great example of permissionless innovation.

Lixin specifically mentioned MetaMask Flask, which is a developer version of MetaMask that allows developers to build interesting applications without permission. Keystone has also built Bitcoin Snap, allowing users to sign Bitcoin transactions in a completely permissionless manner using Flask.

Through collaborative efforts, Web3 is becoming a place for everyday collaboration.

Insights from Suji Yan (Mask Network Founder)

Back in the Web1 and Web2 eras, the data and assets owned by users were controlled by platforms or large companies. Whenever people wanted to build their own servers, they needed APIs and SDKs, and requests for such information could be denied by large platforms and companies.

As we embrace Web3, we finally have a real opportunity to achieve true permissionless innovation. With this focus, Mask Network has established its own social protocol, decisively entering Web3 social. Decentralized identity (DID), social graphs, and connecting Web2 and Web3 are the areas Mask Network is committed to achieving permissionless innovation.

In May 2022, Mask Network co-hosted the ETH Shanghai Hackathon with Gitcoin. They received over 1,000 applications, and the demo day showcased more than 40 projects. Suji believes that permissionless innovation is the reason ETH Shanghai was made possible. Application builders no longer need approval and can easily interact directly with protocol infrastructure, with innovation only limited by the builders' imagination.

As wallets incorporate more features, along with exciting functionalities in NFTs, social, and even the metaverse, we will soon see a more permissionless and truly decentralized social network.

Differences Between Web2 and Web3

Many Web3 companies are younger and smaller compared to Web2 companies. Unlike most Web2 companies that keep everything secret, Web3 encourages collaboration.

Overall, the Web3 space lacks traditional functionalities. Instead, they build in public, seek help from the public, and allow for more exponential growth. Stealth mode is rare in Web3, and when it happens, it is usually for a reason.

Why Build with the Open-Source Community

Anonymous community members can contribute to products or protocols in various ways, as they not only propose ideas but also actively participate in development.

Web3 startups typically go through three stages:

• Founders and the core team define the SDK and establish a framework for how the community can collaborate with the network.
• Next, the team must cultivate culture and educate users.
• Finally, the project is in the hands of the community. Here, the team's job is to engage developers and users to drive the project forward.

Suji believes Mask occupies 70% in Stage 1 and 30-40% in Stage 2, boldly claiming that Mask will always remain open-source, as it is written into their DNA.

One approach is to keep the core team of the protocol around 100 people and encourage the developer community to participate in what they are doing. Funding community projects, investing in projects with strong business plans, and introducing them to other investors will help projects grow significantly and dynamically, expanding the product ecosystem.

Suji calls on startups to seriously consider open-sourcing and involving community members. Open-sourcing is a way to gain trust, which may take a long time to achieve.

Lixin responded to this viewpoint, as he believes the greatest benefit of open-source is that it can inspire the imagination of more developers. Keystone also benefits from recruiting developers from the open-source community.

Success Journey

Insights from Kumavis (MetaMask Founder)

Three things for MetaMask's success: 1. Timing; 2. Building more than just a product; 3. Luck.

MetaMask has been built for 6-7 years. Initially, the team's goal was to gain users' trust—even when MetaMask itself was still unprofitable. The team focused on security and quickly expanded after gaining attention, at which point they introduced the swap feature and began earning revenue from there.

Currently, the swap feature is the main source of revenue for MetaMask. The swap feature has no major issues, and reported bugs are resolved immediately. These make MetaMask a gateway for new Web3 users, helping them navigate the Web3 space as unobtrusively as possible.

While many popular products may overlook the noble intention of creating more revenue streams, MetaMask chooses not to go down that path. As Kumavis said, they want to establish a virtuous cycle with the community and play the long game. For the MetaMask team, the best user experience is to allow them to use any dApp on any browser, enabling the adoption of certain identity services.

Insights from Liu Lixin (Keystone Wallet CEO)

Lixin stated that the biggest challenge in building hardware is managing the supply chain, especially during the Covid-19 era. This makes life much more difficult compared to simply building software wallets, as the inconveniences of transportation and e-commerce add up. Every decision made by Keystone must be very cautious, as once the wallet is shipped, further changes become difficult. Fortunately, Keystone has an advantage in this area: team members are experienced hardware veterans.

For Lixin, the biggest challenge is how to gain the community's trust. "It's as hard as selling insurance services to people," Lixin said. Most users lack a technical background, so they cannot audit the code or fully understand the features or efforts behind what is offered.

Insights from Suji Yan (Mask Network Founder)

Believing in the community and continuous innovation are the two cornerstones that have shaped Mask Network over the past few years.

Mask Network started with a team of 10 during the ICO bubble burst in 2017. For a small team, raising funds was very challenging, as venture capitalists often avoided investing in cryptocurrency. It wasn't until 2020 that things began to improve. The years 2017-2020 were tough times for Mask. In 2020, DeFi and NFTs became popular, as did Web3 social. That was when Mask Network managed to raise funds, as VCs finally began to show interest.

The open-source community played a significant role in this process—Mask received funding from Gitcoin. Mihai Alisie (co-founder of Ethereum and Bitcoin Magazine) also retweeted Mask's Twitter post, attracting funding from many OGs.

All of this greatly helped Mask, leading to the decision to donate to Gitcoin as a public good and fully fund the latest Web3 social ecosystem funding round. After the $MASK token launch, Mask also donated a significant amount of tokens to Gitcoin.

Advice for Web3 Startups

Regularly connecting with your community is the top advice for Web3 startups. It is recommended that Web3 startups actively communicate with the community instead of working in isolation—especially for projects or developers with a Chinese background. The speakers clearly stated that culturally, Chinese projects are more likely to maintain a low-profile progress.

In terms of marketing, Lixin shared a story about how the team spent time discussing security issues with community members on Twitter and promoting their products. Those who truly want authentic products will receive giveaways from Keystone, which has proven to be a very useful way for Keystone to receive feedback.

The bear market is the best time for builders, and only by taking a long-term approach can a bull market exist. The speakers encouraged builders to boldly implement their plans. The victory of Web3 is coming soon.

Backend Story and Future Plans

Insights from Kumavis (MetaMask Founder)

MetaMask was founded 6 years ago. Kumavis himself is more focused on supply chain security and issues. Currently, MetaMask has over 100 team members, aiming to make MetaMask one of the safest crypto wallets. The MetaMask community is growing, with membership exceeding 3 million.

Other Applications Being Built by MetaMask

Snap System

The rapid development of new protocols and new interaction methods is hard to keep up with. MetaMask invented a plugin system called Snap to enable permissionless innovation. With increasing security risks, the Snap system takes on greater responsibility.

Lava Mode

Building on Chrome extensions has never been easy, as such experiments need to be conducted correctly and securely in a sandbox environment. Lava Mode is a supply chain security system that uses JavaScript as its native language to protect MetaMask and safeguard any user or wallet. "Take a look at Lava Mode. We use an enhanced version of JavaScript from Agoric in the Snap system to contain the Snaps you install," Aaron said.

Now, when users visit a website or dApp, they are prompted to install external functionalities in the form of Snaps, clearly displaying what permissions are needed. For developers familiar with this, MetaMask provides them with a part of the HD key tree—entropy related to certain chain IDs.

New methods and technologies are always invented to solve problems along the way. For MetaMask, the goal is to be the gateway for users. This is achieved by adding new blockchains and new types of contract accounts. MetaMask also plans to allow Snaps to enhance transaction confirmation screens in the future to display more information, enabling the community to arm themselves with specific knowledge to help them make more informed trades.

Insights from Liu Lixin (Keystone Wallet CEO)

Keystone was founded in 2017, and for three years, they focused on Bitcoin security. It wasn't until the end of 2021 that Keystone began to pay attention to Ethereum and Web3-related implementations. Becoming a partner of MetaMask is one of the things Keystone is grateful for. This partnership mainly targets the MetaMask browser extension, which has already integrated the mobile application.

Building the Next Generation Hardware Wallet

According to Keystone's research, the current market share of hardware wallets in the Western Web3 community is around 10%, and it is expected to grow by 20%-30% in the next bull market. He believes that if the entire crypto community reaches 100 million people, the demand for hardware wallets will be even higher.

To meet the estimated demand, Keystone is doing several things to make it easier for ordinary users to use Keystone.

First is to build the next-generation hardware wallet at a much lower price. It includes a larger touchscreen and QR code while retaining the traditional aspects of the current version and integrating more cool features. "We are trying to keep the price around $80, and we will attempt to use two different security elements from two different vendors to enhance our own security and provide more open-source resources to the community."

Delivering Another MetaMask Flask

Seeing that Web2 users face many difficulties entering Web3, Keystone is also actively addressing the mnemonic phrase issue. The team is working with MetaMask to build another MetaMask Flask, which is a proof of concept for a seedless MPC (multi-party computation) solution. "Users can forget the mnemonic phrase and use cutting-edge technology like MPC to have a Web2-like experience on their Web3 journey."

Insights from Suji Yan (Mask Network Founder)

Mask Network primarily focuses on building Web3 social protocols, which serve as intermediaries between Web2 and Web3. By using Mask Network's extension, users can send encrypted posts on Twitter and other social platforms and showcase the NFTs they hold.

Mask Network has been integrated with MetaMask for 3 years. The cross-extension RPC was the first project of Mask's integration with MetaMask. Suji himself is an early user of MetaMask and has spent a lot of time and energy exploring what is being built in Web3.

Building and Investing in Web3 Social

Web3 social is in its infancy in terms of innovation, with no projects valued at $200-300 million. Such valuations are not uncommon in DeFi and NFTs. Mask is closely collaborating with Arweave and IPFS to build a storage layer and is actively challenging the status quo and investing in Web3 social.

Binding Ethereum Accounts to Twitter

The collaboration between Mask and MetaMask began in 2018 when MetaMask had about 20 employees. Both sides exchanged ideas on how to bind public keys to Twitter accounts. Although this feature is not yet complete, it is still in progress.

Incubating Next.ID

In the decentralized identity (DID) space, Next.ID—a DID aggregator—is a major project Mask is working on. The team sees huge potential as more users and projects will want to use DID to log into EVM-compatible chains.

Next.ID aims to be a bridge for Web3 identity and will collaborate with other decentralized identity solution providers like Ceramic and CyberConnect to bridge the gap between Web2 and Web3. Next.ID already has some ongoing cases. You can check the official website for more information.

Both Mask and Next.ID are open-source, providing various technical documents and solutions to benefit developers without permission.

Anyone interested in the future of Twitter Spaces, please follow Mask Network @realMaskNetwork. We will host more such events and continue to invite more industry leaders and emerging Web3 builders to talk with us.

Web3 Social Club is a Twitter Space series launched by Mask Network, where Web3 projects and builders gather to exchange ideas on building cutting-edge social networks and infrastructure.

Web 3.0 Master Class is a series of events by BlockBeats. It invites experienced Web3 entrepreneurs, investors and institutions, developers, and communities to share their business stories, marketing, and investment strategies to enlighten Web3 enthusiasts, startups, and builders.