As the debate over the effectiveness of cryptocurrencies continues, many are looking beyond traditional definitions of “currency” and exploring new use cases. One area that has caught the attention of many in the crypto community is Web3, which offers a new way of thinking about ownership and control over personal data.
Web3 builds on the earlier eras of the internet, known as Web 1.0 and Web 2.0. Web 1.0 was a read-only era where users could only consume content written by others. Web 2.0 allowed users to contribute their own content and interact with others in real-time via social media. Web3 adds the concept of ownership, where users have control over their data and payments are made on a peer-to-peer basis.
This is a significant shift from the current model, where users surrender their personal data to centralized entities in exchange for access to robust networks. With Web3, users would have complete ownership and control over their data and content, with digital assets or tokens providing each user with property rights. This would allow users to warehouse their own inventory of data and tokens, which they could bring with them from protocol to protocol.
However, widespread adoption of Web3 is still a long way off. Scalability is a major issue, and users need to see value in the tokens that are used as incentive mechanisms. Inertia will also be a significant factor, as people are comfortable with Web 2.0, even if that comfort level comes at the cost of privacy and personal information.
Despite these challenges, the professional investing community is taking notice of Web3. Companies like JPMorgan, Goldman Sachs, Disney, and Apple are exploring the benefits of Web3 or investing capital into the space. Assets like Chainlink (LINK), Filecoin (FIL), and Audius (AUDIO) represent ways to gain exposure to Web3 development.
Overall, Web3 has a long way to go, but it remains well on its way to getting there. The ability to maintain ownership of one’s personal information while maintaining the right to monetize it themselves is something that will grow in favor. As time and innovation continue to drive the development of Web3, we can expect to see more widespread adoption and a shift towards greater ownership and control over personal data.