Taipei Blockchain Week | Animoca Founder Yat Siu discusses the changes and importance brought by "digital property rights"

The Taipei Blockchain Week conference concluded today with a keynote speech on "Digital Property Rights, NFTs, and Metaverse" by Yat Siu, co-founder and chairman of the blockchain gaming company Animoca Brands.

The Concept of Decentralized Ownership

In his speech, Yat Siu used the example of a car to explain the concept of decentralized ownership. He mentioned that when people buy a car, they can customize it with various accessories like a baby seat or electronic gadgets, and even hire a driver without needing permission from the car developer. With the emergence of NFTs, ownership in the digital assets world is now possible because NFTs can provide proof of asset authenticity and record transactions on the blockchain, offering permanent and transparent purchase records and ownership proof.

The Transformation of Ownership in the Gaming Industry

Yat Siu also discussed how NFTs have changed ownership of game assets. In centralized games, assets are usually tied to the platform's servers and cannot be transferred between different games due to different asset records and rules. However, in decentralized networks, players' assets are stored on the blockchain and can be used across different games, greatly enhancing economic openness. Even if a blockchain game ceases operation, players do not lose their assets.

This shift has also changed the relationship between players and game companies. Yat Siu used the example of Sandbox land buyers, where users, in addition to being buyers, are also co-owners with shared interests. As the Sandbox ecosystem becomes more valuable and influential, landowners benefit together. Thus, when players spend a significant amount of time in games, they are not just passing time but also creating value for the game and themselves.

This has led to online platforms transitioning from being solely owned by companies to being collectively owned by the community.

Furthermore, with ownership in the hands of players, the game asset leasing market has become lucrative, generating over $100 billion in value in the metaverse in 2022.

Property Rights Bring More Value

Yat Siu then shared an interesting observation that the growth trends of cryptocurrency users today and internet users 25 years ago are almost overlapping, indicating that as the industry continues to evolve, the adoption of cryptocurrencies will gradually rise.

Additionally, Yat Siu shared a chart showing the correlation between income and property rights. He mentioned that in countries with low property rights awareness, where long-term asset ownership cannot be ensured, it is challenging to develop long-term business or investment plans, resulting in lower per capita GDP and income. Conversely, advanced countries do not face this issue and can leverage their assets to create value, leading to higher per capita income.

Finally, Yat Siu concluded his speech with a quote from George Washington, one of the founding fathers of the United States.

"The preservation of the sacred fire of liberty and the destiny of the republican model of government are justly considered, perhaps, as deeply, as finally, staked on the experiment entrusted to the hands of the American people."