Define Web3
Cryptocurrencies, NFTs (Non-Fungible Tokens), Blockchains, DAOs (Decentralized Autonomous Organizations), Metaverse, Decentralized Finance (DeFI), Decentralized Applications (DApps). Buzzwords, yes, but they also represent important trends shaping the next generation of the Web, Web3, or Web 3.0.
Web 2.0 is largely considered the era of social networking or the web as a platform, combining the “golden triangle” of mobile, social and cloud computing.
The Web 3.0 business model is built on the core concepts of a decentralized, open, trustless web, powered by an encrypted, responsible distributed ledger.
cryptocurrency Bitcoin and Ethereum, for example, stand for digital currencies, encrypted, secure digital assets designed to be exchanged, monitored and organized through a secure peer-to-peer ledger called a blockchain. Unlike traditional currencies, cryptocurrencies are not governed and controlled by central authorities such as banks or government agencies.
Every user owns a cryptocurrency wallet, an application that cryptocurrency holders use to store, spend, or exchange their digital assets, including NFTs. Crypto wallets contain a pair of public and price encryption keys. The public key is used to make payments to addresses derived from it, for example one of my public keys is briansolis.eth. The private key allows cryptocurrency to be used from this address.
NFT Represents more than just digital art or music minted on the blockchain. Think of them as unique, one-of-a-kind digital assets with real-world value. NFTs are stored on a public-facing digital ledger called a blockchain, which means they are inherently tied to a recorded history of ownership and value to ensure their authenticity. Just like any other asset, this value can rise or fall based on perceived value and market conditions. The difference is that value can be attached to the NFT outside of the asset itself.
You can also think of NFTs as digital keys to unlock access to other assets, events, communities, experiences, and even professional and economic opportunities. At a basic level, imagine a member with exclusive access. Your NFT is your access card. Your wallet becomes your identity in many ways.
NFTs will eventually become “soul bound,” meaning they won’t be resold. Starting with diplomas, certificates and even certificates, and ending with your online data and health records, it can all be stored in your wallet as NFTs. As you interact with other organizations, your soul-bound NFTs will facilitate exchanges that define personal and professional engagement.
NFTs, tokens and other crypto-based assets can also be distributed as part of an innovative loyalty program where customers become stakeholders. Or imagine offering physical and digital products as NFTs, authenticated and minted on the blockchain during each sale or resale. Houses, cars, luxury goods, rare wines can all now be linked to a distributed system of record that guarantees authenticity, linked to historical value chains, providing individual ownership without any centralized group facilitating every transaction.
Decentralized Autonomous Organization is a Web3 collection with a specific purpose. Think of a DAO as a business classification such as an S-Corp or LLC run by a token or token holder. Each offers certain rights, such as certain areas of management or voting. Some refer to the DAO as a crypto cooperative or a financial flash mob. The point is that DAOs are run by their members for a common purpose, such as investing in startups, cryptocurrencies, NFTs, and other assets. In many cases, smart contracts are custom algorithms that govern decision-making and operational infrastructure beyond stakeholder engagement.
E.g, friends with benefits ($FWB), considered a social DAO, where members buy $FWB to gain different levels of club access. FWB has been likened to a decentralized version of SOHO House, making it a digital VIP club for the cryptocurrency creative class.
This is just the beginning.
Everything—art, banking, insurance, healthcare, government services, etc.—can be reimagined as value-added goods and services owned by shared groups rather than traditional corporate structures. Just imagine an employee owned business where you as a customer also become a stakeholder of the organization in just one situation. You can have a say in setting rules and policies, prices and even earning bonuses.
Stay tuned for updates…
resource:
Wall Street Journal
“10 tech events that will shape the future in 2021”
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Brian Solis
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