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How Web3 will Change the Digital Economy Forever.

  • Tuesday, 25 Oct, 2022
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How Web3 will change the digital economy forever

Web3’s global digital economy will eliminate barriers to trade across borders, leading to breakthroughs in productivity, the release of previously locked-up capital, and the emergence of both new market leaders and challengers.

When was the first time you made a post on Facebook? When did you start use Twitter? Tell me about your very first LinkedIn post. Use Instagram? Remember, the first decade of the Internet didn’t allow for any of this. Before a small group of people gained access to HTML editors, the Internet was mostly used for reading and research.

Next, Web2 emerged. Those of us who helped create it dubbed it the “read write web.” It opened the floodgates for anyone to share their ideas and opinions online. Blogs, tweets, posts, reviews, comments, and likes are all examples of user-created content (UGC) online nowadays. Unsolicited User Generated Content is the foundation upon which the largest social media and retail sites of today rest.

Web3 is About Ownership

The third-generation Internet (Web3) revolution has begun. The term “read-write-own web” (or “Web3”) has been proposed as a good approach to describe Web3. At its core, Web3 is about the way it makes us rethink the concept of property.

The things we wear, use, and drive are all things we own in the real world. The question is, what do we actually possess in the virtual realm?

Is the content you posted on your site yours? Just what are you tweeting about? Exactly what is on your Instagram feed? These are, at first glance, strange inquiries. The meaning of “owning” your blog or tweet. Do you know the secret to truly owning a blog post? Will it sell? To whom could it possibly appeal? Why?

Let’s get into the why first. Commonly used user-generated content (UGC) is the foundation of the economic models of many of today’s most popular social media sites. All of the material on platforms like Twitter, Instagram, YouTube, and TikTok is made by individuals all around the world. Imagine if these people actually had control over their own stuff. What effect will it have on how profits are split on these sites? What kinds of innovative business concepts might we expect to see in the future? Who stands to benefit, and who will suffer, from this?

The impact that Web3 will have on the digital economy, particularly with regard to the right to private property over digital works, remains to be seen.

NFTs will be the Commerce Backbone of Web3

Exactly how does one prove ownership of digital materials? Fortunately, we can use a straightforward concept from the real world—the ownership registry—to solve this problem. We use a government-run registry to record ownership of significant possessions like homes and cars. The register keeps track of all transfers of ownership of these items, and issues documents to the new owner (such a sale deed or registration card) to prove their claim to the property.

Web3 takes these concepts and digitally implements them. The blockchain functions as the registry or database that stores information about the ownership of every given asset. This database isn’t maintained by the government, but rather by a distributed network of computers all across the world, and it’s encrypted for security. Any time an asset’s ownership changes hands, the transaction is recorded in the blockchain and the new owner receives an NFT as evidence of the transfer.

As NFTs may record ownership of any digitally verifiable asset on a global scale, these assets can be traded globally and used as collaterals for loans.

One of the main selling points of Web3 is that NFTs make it possible to verify the ownership of assets all across the world.

It will Start with Digital Assets and…

Videos, movies, music, and digital art are currently the primary emphasis of Web3 development. This will completely change the way that creators, artists, and media businesses are compensated for their work. It’s no surprise that OTT and social media platforms are among the quickest to implement Web3.

The complete effect of NFTs and digital assets is still being uncovered. The creation of online fan communities as a result of this phenomenon is one unanticipated effect. However, unlike social media followers, users of these online communities really have to pay to participate by purchasing the NFTs that are issued to them by their respective creators. As a result, it shouldn’t come as a surprise that the most devoted followers of the author can be found in these groups. This allows creators, artists, and brands to reward their most devoted followers and customers with exclusive material or experiences.

New financial instruments (NFTs) that are equivalent to physical assets are another developing pattern. Real estate, automobiles, and high-end timepieces are all being rendered digitally so that they may be digitally validated, purchased, sold, and collateralized. In fewer than ten years, every asset, digital or otherwise, will have a digital equivalent in the form of a non-fiat currency (NFT) that can be traded instantly anywhere in the globe. Web3 will enable the global seamless trading of any asset, much as capital now flows freely across national boundaries.

Because of Web3’s worldwide reach, traditional trade barriers will dissolve, allowing for the release of previously locked-up cash and the distribution of previously unrealized profits among a whole new group of consumers and businesses.

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