Web3 is Metavolutionary
Some have questioned whether Web3 offers much in the way of utility. Web3 is the build-out platform for evolutionary economic and governance models. For a Web3 company to succeed, it not only needs a great product, an established userbase, but also an attack-resistant system of governance. While there will be plenty of failures, the breakthroughs will influence how better to design traditional economies and governments.
While some still believe governments can stop crypto, hyperstructures are crypto protocols that run for free and forever, without maintenance, interruption, or intermediaries. They exist entirely on-chain and could be classed as a public good. Such structures include open protocols such as http, DNS, and SMTP, but unlike those structures, Web3 allows anyone to build on top of such hyperstructures. Builders are rewarded for creating and contributing to these structures by way of the added utility they introduce, thus users are economically incentivized to buy tokens which then increase in value the market places more demand on such tokens.
Hyperstructure real use cases
Uniswap is one such structure. While governments can try to shut off all front ends that enable one access into the Uniswap decentralized market, we all saw the deep fail all govts experienced from trying to shut off “Pirates Bay”-type P2P front ends when it comes to trading any digital media such as music, videos, movies, and books. For every front end shut off, ten new ones would emerge. With Web3, it would probably be a 100:1 ratio, thus a monumental waste of taxpayer dollars for the courts to take down front ends.
Helium is another such platform. Users are economically incentivized via the earning of tokens to allow their wifi to be used by the public. And while early users may have been vulnerable to being hacked, of course technology always finds a way to address such issues. So those who dismissed Helium as a failure from the start due to this hacking issue are of the same ilk that have declared many technologies dead in their early stages that we today take for granted. At any rate, Helium has exponentially grown.
Nouns is yet another of a number of transformational Web3 experimental platforms. It is “an experimental attempt to improve the formation of on-chain avatar communities” while an “attempt to bootstrap identity, community, governance, and a treasury that can be used by the community.” Each day, a new Noun is auctioned. The ETH from each sale goes into its DAO treasury. Each holder gets to vote on how to allocate the growing treasury which currently stands at over $30 million. Some physical products such as sunglasses have been brought to market as well as philanthropic efforts such as donating 100 ETH to UNICEF for Humanitarian Aid Assistance in Ukraine.
Web3 reduces costs and increases efficiency, privacy, and security while providing a vast selection of choices. Web3’s hyperstructures, tokenized-everything, and superior systems of economy and governance will evolve humanity to new heights. It’s no wonder that there were 18.416 monthly active developers in Dec-2021 according to a report by Electric Capital.
Other Web3 use cases: ReFi
We all know about CeFi and DeFi but now there is regenerative finance, or ReFi. Web3’s ReFi is the environmental iteration of DeFi. It rewards those who create positive effects on the environment while charging those who create negative ones. ReFi includes UBI, lending, and data ownership among others including environmental projects such as Toucan which tokenizes carbon credits with over 21.9 million tonnes of CO2 bridged to date, and Loam which creates a market place for farming data to incentivize farmers by way of token reward to engage in regenerative practices that will help the environment.
While these ideas already exist on Web2, Web3 makes things more efficient, transparent, and composable so others can easily build on the existing structure. Loam tokens could tap into global capital markets on Toucan. Some cryptowhales have found it much easier to buy tokens on Toucan to offset carbon footprints than it has been to buy carbon offsets from traditional brokers.
Other Web3 use cases: DeSci
But in addition to ReFi, now there is decentralized science, or DeSci. Peter Thiel noticed years ago how the highest institutions of learning such as the Ivy League universities are prone to groupthink. If a professor steps outside the increasingly narrow circle of thought, he may lose funding. This eliminates the outliers where the brilliant thought mutations that are most likely to occur can be explored. It is known that big advances are made during beneficial biological mutations. The same goes for ideas which bring great utility therefore help transform traditional ways of doing things.
DeSci changes how research is funded while shifting ownership and value away from centralized intermediaries such as governments and institutions. Smart contracts can be used to mediate in p2p fashion between authors and peer reviewers while sidestepping the traditional academic publishing industry. Blockchain can be used to record truths, distortions, and misses. I wrote about how blockchain can make reporting truths economic HERE. While science is more immune to such deceptions and distortions, a similar scoring system could be used. Reputation scores could be included for anyone who wishes to contribute to the science, act as a peer reviewer, or as an investor.
Censorship could be combated by storing results on the blockchain forever to avoid political interference. Countless controversial but accurate studies on drugs, sex, C19, voter fraud, and the environment have been removed from the internet because they go against the cultural narrative. Yet we are supposed to convince people of things through rational debate and unadulterated data, not starve them of information.
DeFi, NFTs, and DAOs could get projects funded with the potential to return value to the investors, thus creating self-sustaining scientific communities. Vibe Bio creates DAOs that fund research for rare diseases often overlooked by big pharma. The drug approval process is made more efficient by aggregating patients and participants who stand to gain financially and medically if the drug is successful.
DAOs are far more effective than a Kickstart campaign or an LLC because DAOs can tap immediately into crypto’s global funding market. In addition, with each successful outcome, the money goes back into the DAO where the community can vote on additional projects to fund. Projects are attached to NFTs and pre-screened by their community of scientists. If the project is successful and sold, NFT token holders get upside.
Analysts say the metaverse market could be worth $800 billion by 2024. The interconnectivity is immense. For example, there are around 3 billion global gamers, soon closing in on half the planet. Popular games such as Fortnite and Axie are not just economic and social but also offer major artists to hold live concerts inside games.
After all the “bigs” from big pharma to big tech to big philanthropy to big business to big oil, the world is better off with Web3 built on trustless, permissionless, secure, and decentralized protocols. Buckle up, we’re going into a new era.
(͡:B ͜ʖ ͡:B)
Dr.Chris Kacher, PhD nuclear physics UC Berkeley/record breaking KPMG audited accts in stocks & crypto/bestselling author/top 40 charted musician/blockchain fintech specialist. Co-founder of Virtue of Selfish Investing, TriQuantum Technologies, and Hanse Digital Access. Dr. Kacher bought his first Bitcoin at just over $10 in January-2013 and contributed to early Ethereum dev meetings in London hosted by Vitalik Buterin. His metrics have called every major top & bottom in Bitcoin since 2011 to within a few weeks. He was up in 2018 vs the avg performing crypto hedge fund (-54%) [PwC] and is up well ahead of Bitcoin & alt coins over the cycles as capital is force fed into the top performing alt coins while weaker ones are sold.
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