2022 will be the year of the Web3 revolution. People are calling out the power of Big Tech monopolies and raising issues of censorship by centralized institutions, leaving Web3 and decentralized platforms as alternatives. Web3 is about democratizing access to finance but also to everything else such as art, land and infrastructure. Here are three ways you can break into Web3.
Investing
Platforms such as Coinbase are good introductory sites to start investing in cryptocurrency. You can even buy cryptocurrency on traditional Web2 platforms — the Internet we use today, in which Big Tech companies monetize personal data — such as PayPal and Venmo, or open up a wallet on MyEtherWallet or MetaMask in two minutes. You can also buy cryptocurrency from specific ATMs with cash. Fun fact: There is a Bitcoin ATM in Punjabi Dabba in the Durant Food Court.
Investing in cryptocurrency and opening a wallet means that your money will be entirely decentralized and won’t go through a third party such as a bank. Because transparency is a core tenet of Web3, all blockchain transactions are viewable on the public ledger and cannot be altered.
Additionally, unlike traditional finance platforms that require personal information such as names and social security numbers, opening a wallet address requires no name or email. I would argue it is even more accessible to people who either don’t have a social security number to share or wish to avoid giving sensitive information to Big Tech monopolies that have proven time and time again to exploit user data.
The Web3 movement accelerated because of the 2008 financial crisis, which displayed the dangers of relying on big banks, which are largely influenced by top-level executives who prioritize short-term profit above all else and are not always transparent about how money is handled. By transacting with cryptocurrency, you are assured that your money will be protected and accessible in the next global recession.
At the same time, it is important to be aware that certain cryptocurrencies are particularly volatile. I mainly invest in Ethereum, but I also have some of my investments in Stablecoin — cryptocurrencies tied to the value of the U.S. dollar — such as USDC and Dai to balance out the volatility of Ethereum.
NFTs
Nonfungible tokens, or NFTs, are completely digital assets that are bought and sold on blockchain platforms. In the same way people own stocks, NFTs have become assets that people invest in and hold for a period of time. NFTs are particularly favorable to artists; in traditional licensing agreements, artists often have to sacrifice the copyright and retain a fraction of streaming revenue.
Any kind of art such as digital paintings and music clips can be tokenized and sold as an NFT — they democratize art. The Ethereum blockchain network also ensures that transactions and ownership are secure.
Anyone can mint an NFT — I’ve minted a few NFTs with friends — and I would consider it as a channel to monetize or sell your art.
However, NFT plagiarism and theft are concerns. Because the barriers for listing NFTs are so low, it is easy for thieves to steal work from artists, copy it as NFTs and profit off of someone else’s art. Platforms such as OpenSea do not moderate or check for plagiarism and theft as much as they should be.
DAOs
Decentralized autonomous organizations, or DAOs, are communities without any sort of hierarchy or centralized leadership. I became involved in a DAO called PadawanDAO a few months ago, and we have since raised $350,000 to sponsor student attendance at Ethereum conferences.
The purpose of forming a DAO versus an organization such as a club or nonprofit is that DAOs promote decentralized governance and full democracy — there is no formal leadership. While many DAOs have core members and workgroup leads to spearhead initiatives, DAOs function democratically; anyone who contributes to the DAO can receive governance tokens and vote on decisions the DAO faces.
Having been in more centralized forms of leadership and organizations such as student government, I’ve found that DAO decision-making happens more efficiently and initiatives progress significantly faster. For example, you don’t have to have an email forwarded 10 times until it gets to the right person. Bureaucracy requires time and energy and can inhibit the work of an organization.
There are DAOs all over the world focusing on all kinds of goals, from protecting landmarks and cultural documents, from billionaires to buying the last Blockbuster Video. All of these DAOs emphasize initiatives for the people and by the people, and many seek to ensure things are kept communal for the general public to enjoy.
It’s worth noting that decentralized platforms and transactions require a lot of energy and are not the most environmentally friendly. As more people and organizations start to rely on blockchain, the energy usage will not be inconsequential. While clean cryptocurrency and green mining are emerging as a way to alleviate the high electricity and energy usage, these alternatives are not as financially profitable for people simply looking to make short-term profit.
Web3 is no longer a niche technological community: It’s a new way of life. Web3 has the ability to transform the way we maintain assets and transact on a day-to-day basis.
Big Tech companies and monopolies such as Square (recently renamed to Block), PayPal and Meta are trying to enter Web3. While some argue that big tech is making cryptocurrency more accessible for the average person, many fear that if big companies capitalize on the hype around the cryptocurrency market, the Web3 movement for decentralized institutions and governance will weaken because the same few tech monopolies will maintain most of the wealth and regulatory power over cryptocurrency.
There are so many applications of blockchain in practically every industry such as cybersecurity, movie royalty payments, health care infrastructure and brain computer interface.
Nontechnical people can contribute to the blockchain space through writing, design, UX, marketing, sales and endless other roles. There is a place for everyone in Web3.
Contact Amrita Bhasin at [email protected]
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