Today we are trying something new.
One of the founders of Web3 Academy, Kyle Reidhead, wrote an article for Exodus Wallet about the future of business models and tools thanks to the innovations of Web3.
We’ve shared the content of this article below. In addition, Kyle filmed a podcast episode reading and exploring his thoughts on this article further.
Have a listen or read and let us know if you like this content and want more of it by replying to this email or sending a message in Discord!
What is Web3? The next internet revolution
The “Bitcoin” not “Blockchain” crowd couldn’t have been more wrong…
Blockchain technology is in fact enabling 3 revolutions at the same time:
1. The Money Revolution (Global, decentralized, non-state money)
2. The Financial Revolution (DeFI)
3. The Internet Revolution (Web3)
Each of these revolutions is necessary and important for us to achieve a future of global equality and free ourselves from overreaching governments and corporations. This is the true promise of blockchain and crypto.
So What is Web3?
Web3 is the next iteration of the internet: permissionless, accessible to everyone, censorship resistant and owned by its users.
There are 2 key foundational changes to the internet that Web3 enables:
1. Digital Ownership:
The ability to own something digital without the need for a custodian or trusted 3rd party. We understand this already in terms of money with Bitcoin, but thanks to smart contracts this is possible with just about anything on or off the blockchain (ie. identity, equity, certificates, etc.)
2. Interoperability of you & your digital goods across the internet:
Interoperability in Web3 means your crypto/web3 wallet becomes your 1 secure account/profile for the internet. It moves in and out of applications along with what’s in it. This means no more 100s of accounts and passwords and no friction to move from one platform to another.
Web3 interoperability creates an internet experience more like the real world.
Example: If we buy a shirt in a store in the real world, we don’t have to leave it in that store when we exit. In Web2 however, if we buy something in a game or on Facebook, it stays only in that game or on Facebook. In web3 we can take it to the next location, just like in the physical world.
But wait, it gets better… Where Web3 takes even the real world experience to a new level is through programmability. We can program anything based on the digital assets/activity from your wallet. Meaning, we can create specific digital experiences, provide access, show content or messaging, etc. seamlessly based on the user’s wallet.
Web3 is equalizing the playing field.
Web3 is all being built using decentralized & censorship resistant platforms & apps. Meaning, whatever is programmed into the app, happens. It does not matter your race, location, beliefs, values, etc.
Need banking services because banks turned you down for living in a poor neighborhood? Web3 fixes this.
Need funding for an idea across the world but can’t because the country you live in has blocked cross border payments? Web3 fixes this.
Want to share your beliefs on social media without being banned? Web3 fixes this.
Want to sell your music, a short film or a book but aren’t connected with the big corporate publishers? Web3 fixes this.
So why do we need NFTs and Tokens in Web3?
Tokens (fungible & non-fungible) act as tools in Web3 that serve many purposes for communities, developers, creators & businesses. Let’s break them down first before discussing their purpose:
Fungible Tokens – fungible units of account that can be used as currency, equity, governance, reward systems, etc.
NFTs – A non-fungible token can represent ownership of anything on or off the blockchain. Art is easy to understand here, but think past this. What else is non-fungible in our world? Certificates, event tickets, domains, awards, keys, real estate, prescriptions, identity, data. etc.
These Web3 tools (tokens/NFTs) are a means for creators, communities and entrepreneurs to establish:
– capital distribution
– structure and organization
Web2 vs Web3
Yes, we can do all this in the traditional world. So why is this better in Web3?
Web3 tools make all of these orders of magnitude better because they can be created without permission, with 0 intermediaries, in seconds, and be available on global liquid markets immediately. This is a massive unlock for innovation and capital flow around the world.
Think about the cost, time and sweat it takes to start an LLC in the USA, open a bank account, acquire funding globally (oftentimes this isn’t even possible), file your patents/trademarks and hire a team globally. I can literally do ALL of this in less than 10 mins with Web3 tools like NFTs and Tokens.
Remember, Tokens and NFTs are also programmable
Not only do these tokens have all the capabilities mentioned above, they also have the utility of replacing most marketing and growth “tools” businesses use.
What this means is that a token can be a form of equity and your access into a discord community or a ticket to an in-real-life event. It means that tokens can be a form of governance in addition to an appreciating asset that also shows you premium content on Netflix or your favorite blog.
So Where is Web3 now?
Web3 is not yet in its full form. It’s not completely decentralized or censorship resistant (yet). It’s not seamless and interoperable (yet). We don’t know the best token structures (yet).
Web3 will take time to develop and prove itself. That said, it makes sense to understand and support this technology rather than be against it.
The utility and opportunities that Web3 provides for every person on the planet are endless. In my opinion it will change the world just as much or more as the internet itself did. Web3 is not an “if”, but a “when”.
It is inevitable.
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