CI recently caught up with Tyler Adams, CEO and Co-founder of COZ, a software firm in the blockchain sector providing various products to s support Web3 development. In addition to his efforts to combat counterfeiting, Tyler is part of the lobbying group Stand With Crypto, which advocates for favorable industry policy in Congress. Tyler shared his insights regarding his time on Capitol Hill, as well as his thoughts on the upcoming presidential election.
Our conversation with Tyler Adams is shared below.
Crowdfund Insider: What initially attracted you to the blockchain space, and what motivated you to start working in this area?
Tyler Adams: Though I have always focused on technology and mathematics, my career did not start in blockchain. I first began researching consensus algorithms when working on numerical modeling for the reliability of advanced technologies in a previous role. One of our internal projects required large storage arrays that could globally agree on the state of data, a problem that blockchain technology was particularly suited to solve.
As such, I began exploring distributed ledger technology, starting with Bitcoin and Ethereum, and eventually discovering Neo’s whitepaper on delegated Byzantine Fault Tolerance (dBFT). The dBFT algorithm resonated with me because it met the architectural requirements we needed from an industrial perspective.
As I dove deeper into the Neo ecosystem, I noticed that the technology wasn’t getting the exposure it deserved. This motivated our team at COZ to start translating Neo’s whitepaper from Chinese to English, building more tools, and communicating the technology to the Western world. This work, which began about seven years ago, marked the beginning of my involvement in the blockchain space, driven by a desire to bridge the gap between innovative technology and broader global awareness. I’ve been a proponent of blockchain ever since.
Crowdfund Insider: How do you make the case for self-custody wallets to someone who is newer to crypto?
Tyler Adams: It is understandable for a crypto newbie to want the convenience of a custodial wallet or centralized exchange – self-custody requires a level of personal responsibility that most people aren’t used to, and the risks of losing your assets due to personal error can put people off. But at the same time, there is a reason why the phrase, “Not your keys, not your coins” is popular in this industry. The incentives of custodial wallets, and centralized exchanges, are not necessarily aligned with those of users.
Trusting a custodian with your assets makes you vulnerable to the same risks associated with traditional finance, and at that point, what is the value of owning digital assets? We see this with the occurrence of exit scams, such as BitConnect, and irresponsible use of custodial assets, including the 2008 Subprime Mortgage Crisis. Digital asset custodians are also often weaponized against their users by government agencies to restrict markets, e.g. Operation Choke Point 1 and 2, and are common targets of independent malicious actors since they hold significantly greater value than a single individual and have a larger attack surface.
Crowdfund Insider: When researching a crypto wallet, what are the most important features to look for?
Tyler Adams: Security should be at the forefront of one’s mind when choosing a crypto wallet. Realistically, no wallet is going to be built perfectly from the start. Trust can only come with consistent audits and quick responses to any threats.
Ideally, the wallet should be open-source and provide a hash of the code. Even if you aren’t technical, this is important because it provides an opportunity for the community to whistleblow if anything nefarious appears. Independent security reviews of closed-source products are helpful, but it’s impossible to know the “deal” that was made between the auditor and the wallet provider.
There are a few general considerations for all wallets:
1. Can I trust the wallet application?
2. Can I trust how my transactions are being relayed?
3. Is the wallet designed in a way that prevents me from making mistakes?
4. If there is an issue, is there a secure communication path with the developers?
These considerations were all at the forefront of our minds when building Neon Wallet, as we wanted to create a product that users could fully trust when securing their funds.
Crowdfund Insider: How can blockchain help to address the issue of counterfeiting?
Tyler Adams: The blockchain is an immutable ledger. Everything present on the blockchain cannot be removed or changed, ensuring that it stays there indefinitely. The issue with counterfeiting is that people replicate a product and pass it off as the original, which can be solved by registering the original product on the blockchain to prove its authenticity. This can be achieved through non-fungible items (NFIs).
NFIs consist of a small, scannable chip placed inside or on top of a product, or alongside a piece of art. The product can be scanned via a mobile device to see its proof of authenticity. NFI use cases span numerous industries, including arts, entertainment, luxury goods, gaming, brand activations, financial transactions, verifications, and more.
During the DENVER WALLS street art festival in Colorado last year, COZ installed bronze plaques, embedded with blockchain technology through NFIs, alongside the newly-painted murals. These NFIs serve to verify each mural and prove it is the work of a specific artist. The NFIs can also encourage people to visit the artwork through their adaptable programmability. For the DENVER WALLS festival, COZ reprogrammed the NFI chips so that when two or more of them were scanned, the visitor could redeem a free beer in a local brewery. COZ reactivated this “scavenger hunt” during ETHDenver in February 2024 to encourage visitors to Denver to experience the local artwork and support local businesses.
Crowdfund Insider: What role do you think NFIs will play in the future of digital ownership?
Tyler Adams: With the implementation of NFIs, individuals do not need to be concerned with goods being stolen for resale, duplication of their artwork, or proving their ownership of an item – the blockchain can confirm if an individual’s claim to an item is real or not.
NFIs can be added to luxury goods such as handbags. The NFI chip serves to authenticate the bag and prove its ownership. As such, not only does it help to maintain the integrity of the product and work to reduce counterfeiting, but it can also decrease the likelihood of theft as the bag would be more difficult to sell once linked to an individual. If a bag was found, it would be very simple to prove its true ownership.
Crowdfund Insider: How important is it to advocate for fair and supportive cryptocurrency policies in the United States? How do you see these efforts influencing the broader crypto landscape?
Tyler Adams: Advocating for fair and supportive crypto policies in the U.S. is very important. It’s the reason why I regularly work with Stand With Crypto to help build positive relationships with legislators and highlight the exciting advancements being made in the industry.
Ensuring regulatory clarity within the industry would both reduce legal risks and encourage innovation. This is essential for the growth and stability of the crypto market – everything that is not happening in the industry right now. Additionally, policies that foster innovation in blockchain technology and cryptocurrencies will keep the U.S. competitive on a global scale, driving advancements across various sectors. We see countries like Singapore and Malta leading the way, with progressive regulations and advantageous tax structures, while in the U.S. we are still discussing the basics and creating a lot of uncertainty.
Crowdfund Insider: With the upcoming U.S. election, how crucial do you believe it is for political candidates to support pro-crypto policies? What impact could this have on the future of blockchain and cryptocurrency adoption?
Tyler Adams: It is crucial for candidates to support pro-crypto policy in the upcoming U.S. election. Creating a supportive environment for the crypto industry that balances the need for invention with consumer protection and market stability will help maintain the role of the United States as a place of constant innovation.
The lack of regulatory clarity concerning crypto is a big issue in the U.S. and is hampering industry advancements. As a result, we have seen many blockchain-based companies move their headquarters to other countries. If policymakers and blockchain leaders worked together to ensure the merits and scale of the industry are well understood, as well as ensuring suitable legislation, the industry would have the opportunity to further develop at an accelerated rate.
Crowdfund Insider: What advice would you give to someone looking to get started in the Web3 ecosystem?
Tyler Adams: For anyone looking to get started in the Web3 ecosystem, my advice is to focus on understanding the real-world problems you want to solve before jumping into the technology. It’s not about being the best software developer or immediately applying certain solutions because they’re trendy. Instead, take the time to talk to the people who are experiencing problems, listen to their frustrations, and identify where solutions are needed.
It’s important to understand the value proposition of the tools at your disposal — whether it’s blockchain, cloud, or another type of technology. Not every problem requires a blockchain solution, just as a hammer isn’t the right tool for every task. Your goal should be to understand which tools can genuinely add value to solving the problem at hand.
Crowdfund Insider: What are the current challenges present in the Web3 ecosystem? What can we do to address them?
Tyler Adams: The main challenge is the reputation of everything that involves the Web3 world. Unfortunately, the actions of a few end up affecting the image of the community as a whole. We need to lead the movement to change this reputation by showing that many serious projects are achieving fantastic results in solving problems for individuals and companies using blockchain-based solutions.
Crowdfund Insider: Looking ahead, what are COZ’s next big projects or goals?
Tyler Adams: We are motivated to popularize NFI technology, expanding its application in other segments. There is so much potential in markets such as collectibles, events, fashion, and beyond. We are equally committed and focused on our consulting branch, where we help businesses adopt Web3 solutions.
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