Recently, negative issues such as a member of parliament’s investment in cryptocurrencies and illegal listing of cryptocurrency exchanges have raised concerns about cryptocurrencies such as Bitcoin. Concerns about money laundering, fraud, and tax evasion due to the lack of a standardized regulatory framework, as well as security and investor protection due to their decentralized nature. However, these concerns should not diminish the value of the innovation of blockchain, NFTs, and the entire Web3 space, including cryptoassets. Cryptocurrencies based on blockchain technology are just one part of the Web3 space, the next generation of the World Wide Web.
Right now, the world is looking at a future transformed by Web3 technologies. The impact of Web3 will be far-reaching, transforming our economy and society as a whole, so it is important to actively understand and prepare for the upcoming Web3 era, rather than let a few negative examples blind us to its transformative value.
Understanding Web3
Web3 refers to an Internet ecosystem that empowers individuals by utilizing blockchain technology and connects them to decentralized platforms to share information and communicate, rather than connecting with people on centralized platforms of IT companies such as Google, Facebook, Kakao, and Naver and going through service intermediaries such as these to use the Internet. In other words, Web3 is a future Internet based on blockchain that has evolved from the centralized Internet ecosystem Web2.
Web3 Creates New Value
Web3 technologies have the potential to reduce the cost and increase the efficiency of intermediaries in a variety of sectors. For example, in the financial sector, decentralized finance (DeFi) enables peer-to-peer lending without relying on banks or intermediaries. In addition, ownership of intellectual property rights such as music, art, and content can be digitized to create new forms of asset value. Looking at the content revenue structure of influencers on Web2-based platforms such as Instagram and YouTube, which have become popular these days, it is expected that the overall industry structure will change in the form of Social Fi, a structure where both content creators and users, i.e., participants who contribute to the platform’s ecosystem, can more actively take revenue. In addition, all members participating in DAOs (Decentralized Autonomous Organization), which are decentralized autonomous organizations operated by community governance and smart contracts, will be able to contribute to profit sharing and value creation.
Web3 will enable individuals to directly own and control their data, preventing and guarding against the abuse of personal information by centralized companies or research institutes.
These changes will not only change the asymmetry of data ownership between users and platforms in the current Web 2 environment, but as digital transactions using Web 3 technologies become more common, existing industry systems will be transformed and new business models will be created.
Preparing for the Web3 era
Throughout history, when new technologies emerge and societies embrace them, there has been great resistance. In order to prepare for the Web3 era, we need a better understanding of Web3 technologies and their potential through education. The emergence of Bitcoin has been seen as a creative disruption of the existing financial system and as a technology that threatens the Web 2 space, but there are clear advantages and disadvantages, and the current transitional period will be characterized by user choice. For the successful settlement of Web3, it is imperative to not only challenge new areas of Web3, but also to build an ecosystem where Web2 and Web3 areas can complement each other and create synergy. Various opportunities for Web2 users to experience Web3 should also be provided so that the majority of Web2 users are not marginalized. This will require individuals, businesses, and governments to work together to support innovation while ensuring that regulations and policies balance user and privacy interests.
Web3 technologies have enormous potential to reshape our economy and society by providing greater autonomy, efficiency, and transparency. We must embrace the opportunities presented by change and innovation, prepare for the Web3 era through education and collaboration, and ensure that our regulatory frameworks strike the right balance. The Web3 era is fast approaching, and by embracing it, we can co-create a more decentralized, inclusive, and empowering digital future.
Julia Kim, Global Head of LILLIUS
Original article : http://www.joongboo.com/news/articleView.html?idxno=363596228
