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Studying Web3/Blockchain: A New Era of the Internet

I have long admired what I think Web3 could become. I have built a few ERC-20 tokens, for educational purposes only. I've looked at NFTs and Blockchains in general, in fact I often blog about these topics.

Studying Web3 and blockchain is essential for understanding the future of the internet and finance. These technologies promise to decentralize control, enhance transparency, and empower individuals. While there are challenges and a bit of a steep learning curve, the potential benefits make this an exciting and crucial area of study.

The Internet as We Know It

Web 1.0: The Early Days

  • Freedom and Creativity: Web 1.0 was characterized by individual ideas and creativity. It was a wild west with almost no rules, allowing anyone to build whatever interested them.
  • Content Discovery: Search algorithms were simpler, making SEO less critical. High-quality content naturally rose to the top regardless of SEO strategies.

Web 2.0: The Current Model

  • Centralization of Power: Web 2.0 is dominated by a few large players who control vast amounts of content and data. These entities have profited immensely by selling harvested user data.
  • Content Ownership: Any content created by individuals often benefits these gatekeepers more than the creators themselves. SEO has become crucial to compete with the content from these large entities.

Web 3.0: The Future of the Internet

  • Decentralization and Ownership: Web 3.0, leveraging technologies like IPFS and blockchain, represents a reset. It brings back individual ownership and control over content.
  • Challenges: Although the learning curve and barriers to entry are steeper than in Web 1.0, Web 3.0 offers a fresh start concerning ownership and provenance. The role of SEO in Web 3.0 remains to be fully understood.

Currencies: A Broken System

Issues with the Current Banking System

  • Wealth Concentration: Vast wealth is controlled by a few, with only the wealthiest understanding how to maximize their benefits from the system.
  • Risk and Reward: The system rewards extreme risk-takers. However, when risks fail, national and international banks often bail out these entities, creating a moral hazard. The rewards of successful risks benefit banks, but failures are mitigated by public funds.

Benefits of Cryptocurrencies and Tokenization

  • Decentralized Finance: Cryptocurrencies and tokenisation offer an alternative to the centralised banking system. They enable more democratic access to financial tools and services.
  • Transparency and Security: Blockchain technology ensures transparency and security, reducing the risk of fraud and manipulation.
  • Financial Inclusion: Cryptocurrencies provide financial services to those who are unbanked or underbanked, fostering greater financial inclusion.

NFTs: Potential Beyond the Hype

Current State of NFTs

  • Hype and Speculation: The initial surge in NFT popularity has been marred by speculation and low-quality digital art, with many seeing it as a quick money-making scheme.

Real Potential of NFTs

  • Provenance and Ownership: NFTs have enormous potential in proving ownership of real assets. They can maintain records of vehicle ownership, maintenance, and transfer for example.
  • Experience Ownership: NFTs can verify the ownership of tickets for concerts, flights, and other experiences. They can track sales and transfers, ensuring transparent and fair secondary markets.
  • Smart Contracts: Leveraging smart contracts, NFTs can automate and enforce the terms of sales and ownership transfers, reducing fraud and disputes.