In addition to the content monetization potential, the Flow blockchain is technologically impressive and tailor-made for the large addressable market we just highlighted. Flow leverages a unique multi-role architecture for nodes that enables massive improvements in speed and throughput without sharding, and at the same time preserves a developer-friendly, ACID-compliant environment and enables full smart contract composability. While traditional blockchains force each node to store the entire state of the network and process every transaction, the Flow blockchain allows nodes to specialize in different roles depending on financial stake and hardware capabilities, enabling more efficient performance versus cost. Flow accounts also have full smart contract capabilities, making it easy for developers to provide superior user experience for onboarding traditional users, including offering free-to-play models, prepaid fees, and access recovery. These features, while standard in traditional web experiences, have been historically difficult to implement in the blockchain world.
Finally, we are seeing signs of a growing community choosing to build on or integrate with the Flow blockchain, which has historically been one of the biggest challenges to overcome for emergent blockchains, representing meaningful de-risking for the future of the token and ecosystem. For example, Flow already has an active dialogue with developers through the Playground, Flow Alpha program, and Open World Builders efforts. The Cadence team has also collaborated with Facebook’s Move language efforts to ensure compatibility and optimization when run on the Flow network. On the projects side, Viv3 is a recently-launched NFT marketplace that lists not only Top Shot Moments, but also original art drops and UFC collectibles. Chainmonsters is an upcoming cross-platform multiplayer online RPG inspired by Pokemon. FLOW-supported wallets are also on the rise, with Blocto and Ledger as two examples, while a growing list of exchanges already support Flow, and we expect more to follow. Similarly, we anticipate additional Flow-native projects such as new collectible issuance platforms, Esports tournament management tools, to emerge out of stealth over the course of 2021, which should further augment the network effects that are already starting to compound.
Conclusion: Whether we’re following the Mandalorian’s efforts to deliver baby Yoda to safety or navigating the rough and tumble Western frontier in Red Dead Redemption 2, well-crafted narratives, rich worlds and believable characters are already table stakes in mainstream media experiences. In contrast, blockchain-native entertainment still generally lacks compelling content capable of elevating associated collecting and gaming activities. Dapper directly addresses this problem and has taken the lead in facilitating the engagement of existing, passionate fan bases starting with NBA Top Shot, although we anticipate its success to be a case study for additive engagement and monetization that other content owners are watching closely. We think of the near-term the opportunity set for Dapper Labs and Flow-based content monetization to be comparable to the $43B global film box office (2019 pre-pandemic), video gaming revenues of $140B for 2020, or the consumer products businesses of companies like Disney or Netflix, but the longer time value generation potential could be even greater if Dapper Labs’ technology suite and the Flow ecosystem continues to play a pivotal role in the transformation of our content and entertainment landscape as we move towards making the Metaverse an eventual reality.