THE WEB3 REVOLUTION: FROM USERS TO CO-OWNERS OF DIGITAL ASSETS
Join the Web3 Revolution and reclaim control of your digital world! Co-own platforms, transform industries and gain true asset ownership with DeFi and blockchain-based games. Even Big Tech is jumping on board, exploring blockchain solutions. Don’t miss out on the exciting benefits of embracing the Possession Economy.
Equation Capital investment director Him Gajria identified three stages in the development of the Internet, as he stated in a May 2020 tweet:
“Web 1: reading. Web 2: read-write. Web 3: read-write-own.” — Him Gajria (2020).
Garcia’s tweet summarizes the upcoming Web3 transformation. Web3 is revolutionizing the way we interact with the online world. No longer will users be passive income sources for platforms. Instead, they will become active participants who own their digital assets through blockchain technology.
This Possession Economy offers incredible benefits:
- Greater control over data.
- Financial opportunities through monetization of digital assets.
- Verification of authenticity and integrity of digital assets.
But that’s not all. Web3 also enables active network participation, allowing users to receive rewards and have a say in project development decisions. With the facilitation of micropayments and peer-to-peer transactions, the possibilities are endless.
Are you excited to join this new age of the Internet?
The transition is just beginning, but you can already experience the benefits of Web3. Try out decentralized marketplaces that let you sell your digital assets directly to other users, social media platforms that reward content creation and curation, or gaming platforms that allow you to own and trade in-game assets.
Check out our latest piece to learn more about the coming changes and their value to users and businesses. Join the Possession Economy and take control of your digital assets today!
WEB2.0’S ATTENTION ECONOMY: A CALL FOR CHANGE
The Attention Economy emerged during the Web 2.0 era when digital platforms and social networks first came into existence. It has since become a systemic issue, extending beyond personal concerns of spending too much time on social media and neglecting human interaction. This problem manifests in several ways, including:
- Digital platforms collect, store, and sell personal data indefinitely.
- The rise of non-state censorship, where users can lose access to everything they post if they violate platform rules.
- The vulnerability of centralized data repositories to hacking.
- The fragmentation of society and misinformation due to algorithms creating personalized information bubbles for each user.
Overall, these problems have far-reaching consequences for both individuals and society as a whole.
WEB3 SOLUTIONS FOR KEY ISSUES
The crisis of Web 2.0 has left us with no choice but to take a long, hard look at the state of the Internet. Enter Web3, a revolutionary concept that harnesses the power of blockchain technology and decentralization to transform how we interact with the digital world.
Web3’s supporters believe that a decentralized Internet can bring about a slew of benefits. Say goodbye to intermediaries and the power dynamics of individual websites. Instead, we can look forward to more secure data-sharing tools and creators finally being granted control over their content. Users will become full-fledged participants in the network, opening up endless possibilities for sharing benefits and creating a transparent digital economy.
While we’re not quite there yet, the transition to Web3 is already underway. Bitcoin and Ethereum are shining examples of blockchain technology in action, as they reward participants for maintaining the network. Meanwhile, user involvement and resource sharing are gaining traction across various industries and services, from decentralized finance (DeFi) to social networks and developer infrastructure.
It’s critical that we keep a watchful eye on the practical implementation of Web3’s goals. After all, the implications for the future of the Internet are significant. Join us as we usher in the dawn of a new era that promises greater autonomy, security, and equity for all.
FROM PLAYERS TO ASSET OWNERS
Web3 technology allows for true ownership of digital assets on the web, which the gaming industry has quickly embraced for decentralized trading and usage.
In recent times, blockchain-based games like Axie Infinity have been gaining immense popularity, and the reasons for their success are evident:
- Ownership of in-game assets is the key distinguishing feature of these games, enabling them to offer players an exciting and engaging experience.
- In-game assets can be exchanged for money or transferred outside the game, making it a profitable venture for users.
- In Axie Infinity, users have ownership of creatures called Axies, which are unique non-fungible tokens (NFTs).
- The ownership of these assets allows users to capitalize on their time and attention by creating and selling in-game objects of real value.
As a result, users don’t just play the game but become asset owners, which is a significant shift in the gaming industry’s landscape.
FROM SERVICE USERS TO CO-OWNERS
Providing project tokens to users is gaining momentum as a formidable alternative to paid marketing strategies. Leading examples of this trend include Coinbase and Uniswap.
- Despite Coinbase being founded in 2012 and employing over 3,730 individuals, Uniswap, founded in 2018 and with less than 100 employees, manages to conduct 73% of Coinbase’s trades.
So how does Uniswap achieve this feat?
- Uniswap makes its users co-owners of the platform by issuing management tokens. Doing so attracts more members to the platform and accelerates its growth.
- Uniswap operates in a decentralized environment, which means anyone can add any asset to the exchange. This makes the platform more diverse and accessible to a broader audience.
Uniswap’s success demonstrates the power of making users co-owners of a platform through management tokens.
FROM BANK CUSTOMERS TO DEFI PARTICIPANTS
The emergence of Web3 technology has transformed how we access the Internet and revolutionized the financial industry. One of the most significant changes is the emergence of decentralized finance (DeFi), which allows anyone to become a lender. Some key points to consider are:
- Projects such as Aave and Compound have created platforms incentivising users to contribute assets to loan pools, from which other users can borrow funds.
- Transactions are automatic, and using smart contracts ensures the security of the process.
- After a certain time, the smart contract accrues interest to the lender, which is part of the fees paid by the borrower.
- DeFi loans can have interest rates ranging from 1% to 20%.
Thus, with lending becoming a transparent process that benefits all participants, DeFi can potentially transform the way we think about finance. From traditional bank customers, anyone can become a member of the DeFi community and participate in a more equitable and accessible financial system.
BIG TECH’S RESPONSE
Due to concerns about centralized management and data privacy, some users have become hesitant to use the services of large tech companies. For example:
- Data leakage scandals such as the Cambridge Analytica scandal have damaged Facebook’s reputation.
- Musk’s Twitter practices have led many users to switch to decentralized social networks like Mastodon.
To address these concerns, Big Tech corporations are exploring blockchain solutions as a way to increase transparency and improve security. Specifically:
- Google is partnering with Web3 developers to adopt these solutions, which may include decentralized identifiers and verifiable credentials.
- YouTube’s new head, Neil Mohan, seeks to help creators monetize their exclusive content by selling NFTs, unique digital assets verified through blockchain technology.
However, fully integrating Web3 solutions would require Big Tech to make significant changes to their existing business models, which they are unlikely to do willingly. Thus, while some progress is being made towards more decentralized and secure technologies, the road ahead for Big Tech remains uncertain.
WEB3’S POSSESSION ECONOMY: TIME TO CHANGE
The Web3 economy is still in its infancy and faces stiff competition from centralized platforms vying for user attention. But make no mistake — significant changes are afoot, and the internet landscape as we know it is set to be transformed in dramatic ways.
Here’s what we can expect:
- Centralized sites will give way to a decentralized network where users are front and centre.
- Web3 will empower users to manage processes themselves, reducing the reliance on intermediary platforms currently dominating the market.
- Gone are the days when users were excluded from the value chain. The Possession Economy is here, giving network users the tools to capitalize on their time, resources, and content.
- By prioritizing user involvement and transparency, Web3 is revolutionizing the Attention Economy and offering a more equitable ecosystem for all.
The future of the Web3 economy is looking bright, and we can expect significant changes to how the internet is managed and operated. The shift towards decentralization and increased user involvement are paving the way for a more transparent and equitable internet landscape. Are you ready to join the Possession Economy and take control of your digital assets?
This article was written by Catherine Smirnova of Digital & Analogue Partners. Visit dna.partners to learn more about our team and the services.
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