Webinar –Blockchain, NFT, Crypto & DeFi –A Primer for these exciting development

1. Blockchain, NFT, Crypto & DeFi A Primer for these exciting developments Dr. Ravi Chamria (CEO - Zeeve)

2. Dr. Ravi Chamria 20+ years experience in IT consulting and tech products spanning across Web3, Fintech, InsurTech, Supply Chain and eCommerce Executive MBA from IIM Lucknow. Thought leader on emerging technologies like Blockchain, IoT and AI/ML. Blockchain Investment CAGR (2019-27)

3. ZEEVE - WHAT WE DO AND HOW WE DO Web 3.0: The read, write, and execute web Web 2.0: The participative social web Web 1.0: The read-only web Web3 is built on a foundation of the ideas of decentralization, openness, and user utility. It allows computers to interpret information like humans via AI and ML. The first version of the Web consisted of a few people creating web pages and content and web pages for a large group of readers. Web 2.0 describes the current state of the internet, which has more user-generated content and usability for end-users compared to its earlier incarnation, Web 1.0.

4. Decentralization Web3 is envisioned as returning data ownership to end- users via decentralization. • The ambition of Web3 is to construct new web protocols and infrastructure that should enable developers to build applications where users bring their own data and identity is no longer bound to any one platform. • A decentralised web is based on a peer-to-peer network that is built on a user community. Instead of a group of powerful servers, this group's own internet-connected nodes would host websites or apps. Each website or programme is dispersed among hundreds of nodes on various devices. •

5. 1990 - Read 2000 – Read + Write 2010 – Read + Write + Execute Web 1: Web 2: Web 3: The Information Economy The Platform Economy The Ownership Economy

6. Blockchain basics Block + chain: A block is a set of transactions that happen over the network. The chain is where blocks are linked to each other in a way that the next block contains hash of the previous one. • Blockchain is a distributed ledger technology that enables digital assets to be transacted and traded in near real time. The record it keeps is permanent and irreversible. •

7. Why Blockchain? Security Transparency How wedo many places because blockchain employs a distributed ledger. All network members with authorized access view the same information at the same time, ensuring complete openness. Blockchain prevents fraud and illegal behavior by establishing a record that is encrypted end-to-end and cannot be changed. On the blockchain, privacy concerns may be handled by anonymizing personal data and using permissions to restrict access. Information is kept over a network of computers rather than on a single server, making data access harder for hackers. Transactions and data are recorded identically in Speed and efficiency Traceability Traditional paper-intensive procedures are time- consuming, prone to human error, and often require third-party intervention. Transactions may be performed quicker and more effectively by simplifying these procedures using blockchain. Because there is no need to reconcile numerous ledgers, clearing and settlement may be completed considerably more quickly. Blockchain generates an audit trail that records an asset's origins at each stage of its transit.

8. PERMISSIONED BLOCKCHAINS PUBLICBLOCKCHAINS A public blockchain is a permissionless blockchain. Anyone may join the blockchain network and read, publish, and participate in the public blocks. Public blockchains are decentralized (no one controls the network) and safe (data cannot be altered once verified). A private blockchain, on the other hand, is one that has been authorized. Authorized networks limit who may use the network and what transactions they can do. 5 Benefits of Public blockchain Benefits of Permissioned blockchain Enterprise controls resources and access to the blockchain Open Read and Write: Anyone can participate Faster transactions The ledger is distributed Better scalability Immutable Compliance support When something is written to the block, it cannot be changed More Efficient Consensus Secure, due to mining (51% rule)

9. Tokenisation A token is a representation of a particular asset or utility. Within the context of blockchain technology, tokenization is the process of converting something of value into a digital token that’s usable on a blockchain application. • Assets tokenized on the blockchain come in two forms. They can represent tangible assets like gold, real estate, and art, or intangible assets like voting rights, ownership rights, or content licensing. • Practically anything can be tokenized if it is considered an asset that can be owned and has value to someone and can be incorporated into a larger asset market. •

10. Benefits of Tokenization More Liquidity: Once tokenized, assets can be made available to a much larger audience, which increases market liquidity and removes the “liquidity premium” associated with investments that are traditionally more difficult or time-consuming to sell, like fine art or real estate. • Faster, Cheaper Transactions: Crypto tokens allow investors to bypass market intermediaries and other middlemen who are typically involved in the traditional asset management process. This effectively reduces the transaction costs and processing time of each exchange, allowing for a more streamlined, cost-efficient method of transferring value. • Transparency and Provability: Because crypto tokens live on the blockchain, users can easily trace their provenance and transaction history in a way that is cryptographically verifiable. Transactions can be automatically recorded on the blockchain, and the immutability and transparency enabled by blockchain technology helps guarantee the authenticity of each token’s stated history. •

11. Distributed Ledger Client A Node A Node B Node E Client D Client B Node C Node D Client C There are multiple ledgers, but Bank holds the “golden record” There is one ledger. All Nodes have some level of access to that ledger. Client B must reconcile its own ledger against that of Bank and must convince the Bank of the “true state” of the Bank ledger if discrepancies arise. All Nodes agree to a protocol that determines the “true state” of the ledger at any point in time. The application of this protocol is sometimes called “achieving consensus.”

12. Tokens Fungibility Non-Fungible Fungible How wedo an asset to be replaced or exchanged. A fungible asset may be replaced or exchanged for another indistinguishable portion. In layman's terms, fungibility refers to the ability of Physical Digital Non - Fungibility Traceability It is the polar opposite of fungibility, something that is one-of-a-kind and irreplaceable. A non-fungible item cannot be readily replaced, such as an autographed book or a rare antique coin.

13. Non-Fungible Tokens

14. NFT NFT stands for a non-fungible token, which means it can neither be replaced nor interchanged because it has unique properties. Digital Asset - NFT is a digital asset that represents Internet collectibles like art, music, and games with an authentic certificate created by blockchain technology that underlies Cryptocurrency. Unique - It cannot be forged or otherwise manipulated. Exchange - NFT exchanges take place with cryptocurrencies such as Bitcoin on specialist sites.

15. Indivisibility Ownership Uniqueness Key Characteristics of NFTs Rarity Transparency Interoperability

16. Who Can Create NFTs? Technically, anyone can create NFTs, however, that does not mean that all NFTs will get a high value during the sale. Many NFT marketplaces allow any user to create their own NFTs, but the users need to have a reputation within the community to earn a good value for their work. A higher social media presence and a fan base are the highest factors in determining an NFTs value.

17. Popular NFT Projects NBA TopShot Decentraland CryptoPunks Axie Infinity Opensea Sorare

18. Use Cases of NFTs NFTs can help artists to fight plagiarism as they can tokenize their creations, which can’t be copied. • Luxury goods can be verified by making them NFTs and giving ownership to the buyer only. • Manufacturing companies can tokenize their products in order to offer provenance to their consumer base. • Institutions can offer NFT-based certifications and licenses to authenticate a person’s educational background. • NFTs can stop counterfeiting tickets and merchandise issues within the sports industry. • Games can tokenize in-game items for players and give them ownership over those items. •

19. NFTs – Some Examples Various objects have been sold as NFTs by many. The CEO of Twitter, Jack Dorsey, sold his first tweet as an NFT. Elon Musk sold a song about NFTs as an NFT. Jack Dorsey listed his first tweet as a unique digital signature on a website called "Valuables by cent" meant for selling tweets as a non-fungible token (NFT). In other words, the buyers were bidding for his autograph.

20. Benefits of NFTs Digital Content - The most significant use of NFTs today is in digital content. Content creators see their profits enhanced by NFTs, as they power a creator economy where creators have the ownership of their content over to the platforms, they use to publicize it. • Gaming Items - NFTs have garnered considerable interest from game developers. NFTs can provide a lot of benefits to the players. Normally, in an online game, you can buy items for your character, but that’s as far as it goes. With NFTs, you can recoup your money by selling the items once you’re finished with them. • Investment and Collaterals - Both NFT and DeFi (Decentralized Finance) share the same infrastructure. DeFi applications let you borrow money by using collateral. NFT and DeFi both work together to explore using NFTs as collateral instead. • Domain Names - NFTs provide your domain with an easier-to-remember name. This works like a website domain name, making its IP address more memorable and valuable, usually based on length and relevance. •

21. Security Flaws How Safe Are NFTs? Recently, Nifty Gateway was attacked by third parties, and they stole millions of dollars worth of art. Nifty Gateway could ultimately return the items to respectful owners. The security level of NFTs is like any type of digital asset and is very close to cryptocurrencies. All the NFTs are stored on the blockchain platform where the ledger is immutable making it impossible to delete or alter the ownership Security issues within user authentication are the main source of recent cyber-attacks on NFTs 5 Blockchain offers robust security protocols and eliminates the scope of cyber attacks. Users not using multi-factor authentication processes and weak passwords, or PINs are leading to these security issues.

22. Why Are NFTs so Popular? NFTs started to become mainstream in 2017, but we saw a massive surge in NFT popularity only in 2020. Only during Q1 2021, the industry resulted in $1.5 billion in transactions, which is 2.627% more compared to Q4 2020. NFTs are more fluid and flexible compared to other cryptocurrencies such as Ethereum or Bitcoin. You can transform any type of asses into an NFT. Users can lose, break or destroy physical assets or collectibles. But NFTs can’t be destroyed or stolen. Once a user gets ownership, they can own it forever. NFTs are a different take on digital assets which is quite innovative and easier for non-technical people to understand and take part in. NFTs can not be duplicated, so no one can misuse the intellectual property of an artist.

23. Decentralized Finance Finance 1.0 v/s Finance 2.0 v/s Finance 3.0

24. Finance 1.0 This is the traditional financial system, which began with the establishment of banks and fiat money. We enter the finance 1.0 era, when people began putting their money in banks because they believed banks were more secure than their homes. People began to earn a return on their investment (ROI) by putting their money in the bank, believing that this was the ultimate financial system that we could have. Slow transactions, long queues, high transaction fees, time-consuming, the possibility of error (as things were controlled by humans), problems with borderless transactions, robbery, scams, and other issues with finance 1.0 became apparent over time. There was no technology in finance 1.0, and all paperwork was handled by humans. The records were kept in register books, which had the risk of being lost or damaged.

25. Finance 2.0 After technology meets finance 1.0, finance 2.0 emerges. Now that everyone has a mobile phone and access to the internet, they can manage all their financial activities such as money transactions, balance inquiries, complaint registration, money requests, account opening, and so on. Many types of third-party payment network processors or payment gateways, such as PayPal, Visa, MasterCard, and others, have been introduced in the era of finance 2.0 to make sending or receiving a payment easier, more convenient, and possible from home. The financial system is still not open to the public or under their control. It still has a lot of flaws, such as a centralised system that stores all the user's data on a centralised server, which often leads to data leakage. Users must pay money in the name of different transaction/processing fees/charges, and users have no control over the money in the bank. The bank can freeze or invest user funds at any moment in order to generate a profit.

26. Finance 3.0 Finance 3.0 is an open financial system that allows customers more power and minimises or eliminates the intermediary, fees, charges, and penalties, among other things. Finance 3.0 is a permissionless system that is not bound by geographical boundaries or social groups. • To power finance 3.0, we can embrace blockchain technology, which can provide a finance 3.0 system with scalability, transparency, security, and other benefits. •

27. Key Differentiators DeFi’s advantages over conventional centralised finance include: Decentralized Finance Tradition Finance Does not require employees or institutions Dependent on institutions and employees Transparency: DeFi allows users to look into the specific rules that govern the operation of financial assets and products. Private agreements, back-deals, and centralization are all major barriers to transparency in CeFi, and DeFi seeks to eliminate them. Does not offer any transparency Offer transparency for codes Control: In order to maintain ownership over its users’ assets, DeFi ensures that no one may censor, relocate, or destroy the users’ assets without the users’ permission. Does not offer any globalized application Offers decentralized application for finance Accessibility: While the blockchain and its distributed network of miners effectively administer any DeFi application, anybody with a computer and an internet connection can create and deploy DeFi products. Comes with an access restriction No access restriction Provides open-source algorithms Does not have any open-source programs

29. Benefits of DeFi Can Not Be Tampered Offers applications that are immutable. Fully Transparent Network Once data gets verified and added, no one can alter it. Typically uses public blockchain which is a fully transparent network. Offers full customization to smart contracts. Every user takes part in verification and thus any updates are broadcasted to them Permissionless Access Offers full customization to smart contracts. All DeFi technologies have permissionless access. Interoperable Design It can offer rights to anyone around the world. There are no restrictions based on their location. Most DeFi technology uses Ethereum’s standards and protocols Due to similar standards, the applications are interoperable. User Empowerment Developers can introduce new features on top of the old DeFi application model which also streamlines interoperability. These applications don’t empower organizations. It’s more geared to users and users have utmost control. One needs to use crypto wallets and maintain their own account themselves

30. Asset Management Offers solutions for network users to manage their assets Heterogenous Cloud Deployments Blockchain Analytic and Real time Monitoring

31. Complying to AML & CFT Measurements Offers Know-Your-Transaction mechanism instead of KYC protocol Focuses on transaction behaviors to enforce AML and CFT measurements rather than user identity Monitors transaction in real-time without disrupting user privacy

32. Decentralized Organizations Can perform traditional tasks such as acting as governance, managing assets, fundraising, etc. These are decentralized in nature and do not have boundaries like centralized organizations. Helps to establish decentralized administrative entities for managing core operations

33. Analytics and Risk Management Helps to discover and analyze data more easily for the users Users can use the data to make knowledge business decisions Helps to discover a new type of financial opportunity and risk management tactics

34. Derivatives and Synthetic Assets Uses smart contracts to automate and introduce the creation of token-based derivatives These assets can work like traditional commodities, fiat currencies, bonds, stock prices, market indexes, and so on dYdX, Synthetix, etc. are applications geared towards tokenized derivatives

35. Improved Digital Identity Offers improved digital identity system that can act as a global identity Can provide attributes such as connection to financial activities and certifications Helps the underprivileged to get access to financial features from anywhere

36. Infrastructure Tooling DeFi offers infrastructure development tools that can connect and interoperate with each other Developers can utilize these applications to develop blockchain infrastructure InfuraAPI, TruffleSuite, etc. are applications geared towards infrastructure development

37. Insurance Gets rid of the abundance of paperwork, bureaucratic and cumbersome insurance claiming procedures Offers automated smart contracts to streamline the insurance claiming process Nexus Mutual, VouchForMe, and Opyn are DeFi applications geared towards insurance coverage

38. P2P Borrowing and Lending It’s created a new type of borrowing and lending marketplace Offers P2P networks for borrowing and lending applications Compound and PoolTogether are DeFi applications geared towards interest-based protocols

39. Payment Solutions It can serve the underbanked and unbanked population around the world It can offer safer, faster, and transparent solutions compared to traditional systems Doesn’t require any middleman and can make payments more transparent and simpler

40. Challenges of DeFi Low Performance High User Error Bad User Experience Scattered Ecosystem Smart Contracts Bugs Low Scalability Oracle Manipulations Volatile Nature

41. Metaverse

42. Virtual Reality VR is a kind of immersive virtual universe that allows you to touch, feel, and move around in a digital environment using headsets and haptic technologies In October 2021, Facebook rebranded itself as "Meta" in order to develop its own version of the metaverse, spending $10 billion to do so. "Horizon Worlds," their major virtual reality game, is a collaborative world- building playground that can be accessed with Meta's Oculus headset; it went live in December 2021 after an invite-only testing period. Oculus was the #1 Free App in Apple's App Store on Christmas Day, demonstrating the return of interest in experiencing the metaverse in the form of virtual reality.

43. Augmented Reality AR is an interactive experience in which computer-generated objects and surroundings are superimposed over the real world. Pokemon GO (developed by Niantic) grabbed everyone's attention in 2016, with 232 million users at its height and an augmented reality experience at its heart. Players may wander around the real/physical world to catch Pokemon that appeared in the app on their phones. • Snapchat has long been known for its AR-first strategy and filters. Only 0.08% of their customers purchased their AR device, Spectacles, in 2017, and they're no longer for sale; only AR artists on their platform have access to them. Their Lens Studio (AR division), on the other hand, has 200,000 artists who have built 2 million lenses for their 200 million DAUs. Every day, users of the Snapchat app utilise lenses to augment their view of the world. •

44. How wedo Digital Reality This is the metaverse's most open interpretation. Avatars, skins, economies, and social networks in traditional games may all be considered metaverses. Traceability

45. Metazens: Citizens of the Metaverse Consider metaverse a place where they will be free to play, have fun, and explore independently Lack creativity in what they expect from the metaverse Willing to pay for experiences that involve gaming, socializing, and working Interested in experiences specific to the metaverse, such as virtual events, simulations, and digital objects Invest in cryptocurrencies at 3X the rate of the general population, and 5Xs as much in virtual real estate and in NFTs See the volatility of virtual assets as an opportunity to win big More likely to use Instagram, TikTok, and Snapchat Spend more time socializing in games

46. $13 Trillion Could be Metaverse’s Economy by 2030, According to Citi

47. 5+ Years ofBlockchain Experience Zeeve is one of the leading innovator in the Blockchain space. Our full-stack Blockchain Platforms and Products help developers build next-generation networks and enable enterprises to launch more powerful Web3 distributed infrastructure and applications. 75+ Technology& Subject MatterExperts 4+ White labelled and on-premise deployments 30+ Blockchain Production Deployments Trusted by the World’s Leading Organizations Blockchain 25+ Ready Blockchain Products, Extensions and Plugins 10,000+ Zeeve BaaS Platform Users

48. EARLY TRACTION Zeeve BaaS Platform is trusted by 10,000+ developers and 25+ Enterprises and Blockchain Consortiums Early Traction & Customers

49. PARTNERS AND ASSOCIATIONS Zeeve has partnered with the key organizations across the world… HyperLedger Foundation Linux Microsoft EEA R3 Corda Fluree Foundation Blockchain Development and Consulting Writers Information Deloitte Intel DragonChain Valid